Canadian Online Discount Broker – TD Direct Investing

Canadian Discount Broker - TD Waterhouse

Contact Information

Phone: 1-800-465-5463

Email: td.waterhouse@td.com

Website:www.tdwaterhouse.ca

Headquarters:

77 Bloor Street West, Main Floor
Toronto, Ontario M5S 1M2

Customer Service Hours of Operation:
Mon to Fri 24hrs

Sat-Sun 8am – 10pm ET

TD Direct Investing (formerly TD Waterhouse Discount Brokerage) – Review of Pricing

(updated March 18/14)

TD Direct Investing is one of the largest discount brokerage companies in the Canadian market.  They have a strong presence all across the country because of their connection with TD Canada Trust branches, which they use quite significantly for investor seminars and events.

Over the course of 2013, they have made a number of changes to their website in an attempt to make it easier for visitors to navigate the wide variety of products and services they offer. For beginner investors the amount of choices may be overwhelming. Fortunately, however, TD Direct Investing offers much the same as their peers.  Clients can trade stocks, ETFs, mutual funds, and options.

Pricing has been simplified as of 2014, with the standard commission rate for all clients now being $9.99 (flat). Active traders (defined as those who trade 150 more times per quarter) benefit from $7 (flat) per trade pricing.  Options pricing has also lowered for 2014 with the per contract price being $1.25 and the minimum cost reflecting either the standard or the active plan accordingly (e.g. standard users options trades are $9.99 +$1.25).  There are ‘custody fees’ for individuals with balances under $15,000 however there are several ways to be exempt from these fees including placing at least 2 commission-generating trades within 6 months, subscribing to a pre-authorized investment plan of at least $100/per month or holding a registered account.

In terms of account types, TD Direct Investing offers both registered and non-registered account types. The popular registered accounts include tax-free savings accounts (TFSAs), registered retirement savings plans (RRSPs) and registered education savings plans (RESPs). For registered accounts you cannot use margin or short stocks. Options trading in registered accounts is limited to buying and selling options and writing of covered calls. Non-registered account types include cash and margin accounts, with short selling and options trading requiring approval as part of the margin account.

While one of the major criticisms of TD Direct Investing in the past has been the lack of the US dollar registered accounts, TD now has the ability for clients to use their US dollar currency money market sweep & redemption option. While it does require that clients ask for this via customer service, once it is set up transactions can be configured so that US currency exchange fees are not incurred. Unfortunately, this does not extend to dividend or interest payments.  Thus it is important to note that unless this service is requested, purchases of stocks priced in US dollars from registered accounts are subject to currency exchange rates set by TD Direct Investing at the time of purchase and sale.

Overall this discount brokerage provides platforms and pricing to active traders as well as long term investors. For those considering TD Direct Investing, it is important to understand what costs are associated with their trading needs and style to determine whether this online brokerage is an ideal fit.

Account Types OfferedFunding Requirements and FeesRegistered Account Types and Fees
TFSAMinimum Opening BalanceNot RequiredTFSAAnnual Charge$0
RRSPMinimum Account BalanceNot RequiredTransfer Out$135
RESPMinimum Balance for Best or Discounted CommissionNot RequiredWithdrawals$0
CashMinimum Commission per Equity Trade$7US Dollar Account
Margin ShortMaximum Commission per Equity Trade$9.99RRSPAnnual Charge$25 (see Conditions for Maintenance fees)
Margin OptionsMinimum Trades per Quarter for Best Commission Rate150Transfer Out$125 (Full)
$25 (Partial)
CIPF MemberInactivity or Maintenance Fees$25/quarterUS Dollar Account
Conditions for Inactivity/Maintenance FeesThe "Custody Fee" can be waived if:
- combined household1 value in all TDDI accounts is >$15,000
-complete > 3 commissionable trades in preceding quarter
-enroll in an automatic contribution plan with $100/month or more
RESPAnnual Charge$25/quarter (see Conditions for Maintenance fees)
Transfer Out$125
US Dollar Account
Last updated: Mar. 9, 2016
Notes:1. Household accounts are defined as those TD Direct Investing
accounts for clients living in the same household, with the same
address. You must advise TD Direct Investing of these multiple
account relationships.

TD Direct Investing Website Links

Here are some useful links to important information on TD Direct Investing’s website.

Discount Broker Customer Survey Ratings by J.D. Power:
Link to 2013 online broker ratings by the Globe and Mail:

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Home Community Canadian Online Brokerage Review – TD Direct Investing (TD Waterhouse)

This topic contains 57 replies, has 3 voices, and was last updated by  Ron O 3 weeks, 3 days ago.

Viewing 10 posts - 1 through 10 (of 58 total)
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  • #28571 Reply

    Ron O

    I requested TD Ameritrade to transfer my funds from my retail account to my bank account. After a week I checked my bank account. I discovered there was no posting from TD Ameritrade. I contacted TD Ameritrade. I was informed that my funds were instead transferred to an institutional account without my knowledge or authorization! Now I have to fill out some paperwork and was told it may take another 1-2 weeks until I finally get my funds transferred from my TD Ameritrade Institutional Account to my bank account. Ridiculous.

    #28290 Reply

    A Customer

    TD WebBroker Watchlist and Holdings pages displays bad data
    Yet again, TD WebBroker is displaying garbage data in my WebBroker Watchlist and Holdings page:
    Eg. it is 9:26am Aug.14/2019
    Enbridge (ENB) closed at $45.48 yesterday, and it is now trading at $44.16/share. Therefore it is down $1.32/share, but my WebBroker account is displaying that it is -$0.58
    THIS IS GARBAGE DATA!
    I have reported this same problem many times over the past couple of years, but TD doesn’t seem to be able to fix this problem. How am I expected to rely on the data in my WebBroker account?
    This problem never seemed to occur for the 10 years prior to a couple of years ago. Did they hire an IT manager who doesn’t know what he is doing?
    Jeez, fix the problem, TD!

    #28271 Reply

    Brock

    Pro: nice looking interface, multi-leg orders on US, Ink research (insider trading), Think or Swim available for US Margin Accounts

    Con: poor website navigation, no multi-leg orders for Canadian ticker, only 2 leg orders for US, switched to Morningstar quant reports from CFRA, website instability – many, many bugs in coding, poor customer service when issues are escalated, incorrect options data, Advanced Dashboard is terrible (a high school kid could create a better platform), high fees, poor education offered, past activity limited to only 90 days.

    #26570 Reply

    Kenneth

    After two decades of being TD Direct Investing customer, I moved my accounts to other brokerages, namely Interactive Brokers and Questrade.

    Here are my reasons:
    TD Direct Investing is way behind Interactive Brokers in terms of what they offer through their platform (Compare TD Advanced Dashboard with Interactive Brokers Traders Workstation)
    TD Direct investing flat rate commission of $9.99 means I pay 10 times more to TD for buying or selling 100 shares than I pay Interactive Brokers (only $1) for same shares!!!
    When it comes to Option trading: TD Direct investing charges around $42 for exercise or assignment of options and Interactive Brokers charges $0 for being assigned and very small amount for exercise.
    Incompetence: The main reason for my switch was constant frustration dealing with incompetent TD Direct Investing employees and their operating system. Giving wrong answers to my questions, sending money to the wrong TD branch for customer to pick up, making mistakes in implementing my instructions, prolonging a simple process that should not take more than two weeks to months, etc.

    Bottom line: Avoid TD Direct Investing if you are an average stocks/options trader with average investing knowledge and sophistication and you want to:
    Save big on trade commissions and avoid frustration

    #26529 Reply

    Don Piears

    I have shares bought through you but I cannot access your site. The only site I have been able to look at demands a log-in password, but previously I used to give parts of my password as requested.Also, the site doesn’t recognise my account user name. Please help.

    #26021 Reply

    George

    Hi all,

    Maybe someone can help me.

    I just got into the pot stocks game 1 year ago. I started with $1,000

    At the moment I am up $600. What would be the smart thing do with the $600 profit?

    If I sell and take the profit, then I will have to buy again anyway, and at a higher price. Or should I sell, take the profit and buy additional shares with it? Or should I just leave the profit there and hopefully in 20 years my initial investment of $1,000 might become 10,000 or even more?

    Thanks for your help. Much appreciated.

    George

    #25495 Reply

    Mary Edmondson

    Hi
    I was attacked by employees from TDWaterhouse brokerage. I launched a terrific trading system there earning a systematic 50% return. I had a dream to trade and invent systems. It took me 30 years to do that in my spare time. I got brain injury and lead poisoning in my teaching job so it was very difficult for me. Electronic weapons were used. My system is Covenant Treaty property but women are not welcome even if we are a huge success. I did not get brain injury treatment because a false mental health fraud was created.All my work was taken. I do not recommend these criminals to anyone.
    TD and Royal Bank use my work leaving me injured to die living in my car. RCMP and Apple helped them.
    Merry Christmas Canada
    Mary

    #24650 Reply

    doug

    TD Direct has a “let them eat cake” attitude on dealing with clients. That’s if you can get them to answer the phone. They are egalitarian though, doesn’t matter if your accounts are $1.5 million or $25,000. You’re all treated the same indifferent way. My recent beef with them is on a late arriving, time sensitive, Corporate Action Notice. Arrived too late to even partake of the offer. Now we are left with a tax issue rather than the option to defer taxes with a take up of new shares. TD’s broker reply was “Take it up with Canada Post”. This is the 12st Century TD, everybody connects digitally & you even do it with your clients when logging in to our accounts. We are faced with adverts before accessing our accounts, so why not do the same with Corporate Action Notices, tailored to the individual accounts that will get to the client in a timely manner? Snail Mail is soooo much better, eh?
    Have an issue you want to discuss with them? Phone only………wait…..wait some more. There is no address for service on any of their websites. Got mine from the late arriving Corporate Action Notice. US clients are treated better & I would suggest that your fees & charges are subsidizing better access for US clients over the home town ones. They don’t have to pay for Level 2 quotes. For them, it’s free. Used to be Presidents account holders had a different phone line to call & better access. Not today. Please wait a while.

    Problem is it isn’t much better any where else, or marginally so & they all know it. It’s the Canadjian way. Yugo Service, one indifferent size fits all.

    #24329 Reply

    Ed Ares

    After having brokerage accounts with National Bank, RBC, Scotia iTRADE and Disnat, I can say that TD Direct Investing is the best of all. I have never had any issues with their trading platform, no long wait times when I call them, their integration with TD Canada Trust allows for immediate transfers to and from the brokerage side, and the most important for me is their second to none market data and analysis.

    #23358 Reply

    Harry

    Please be prepared for explaining your black balling of this Investment Manager, who had the temerity to rescind the allocation of a recent Convertible–done way inside the time interval provided for doing so, and whereby notification was issued via a ?”Resource Official, that no further expressions of an interest by the writer on behalf of the Family Company’s portfolios thereafter.
    It isn’t Masrani that you will be explaining this matter to.
    Take Care.
    Harry.

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