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Interactive Brokers now offers TFSA / RSP

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Deal Fanatic
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Jul 19, 2003
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Interactive Brokers now offers TFSA / RSP

Interactive Brokers now offers TFSA / RSP

Thanks to the wise rodbarc for the heads up.

https://www.interactivebrokers.ca/en/index.php?f=11792
Funding Overview (RSP and TFSA Accounts)
IB allows funding of a registered account (both RSP and TFSA) in cash or in kind.
IB offers the following funding choices:
Fund a RSP/TFSA with cash.
Transfer an RSP or TFSA account into IB using an ATON position transfer.
IB only allows funding of RSP and TFSA accounts in Canadian Dollars.
so, who's switching to them now? why would I have any reason to use Questtrade with this news? :)
129 replies
Deal Fanatic
Mar 24, 2008
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[QUOTE]Customers with an RSP account will be responsible for a 12.50 CAD quarterly fee. This fee is charged to the account at the beginning of each calendar quarter. The fees will be prorated upon account creation.[/QUOTE]

This could be one of the reasons I wouldn't want to switch... why pay unnecessary fees?
Deal Addict
Sep 6, 2010
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ksgill wrote: This could be one of the reasons I wouldn't want to switch... why pay unnecessary fees?
Agreed...IB has always had imbedded fees that aren't all that transparent and you have to do a bit of digging to realize they aren't that much of low fee broker.
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Dec 14, 2010
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Every case is unique, there is not a right answer for this. The choice of brokerages between someone that has a lot of trades per month versus few or none will differ.

The best way to tell if IB (or any other brokerage) is to estimate how many transactions you'll have this year (maybe go through how many transactions you had last year, for example, and if this pattern will repeat again this year), plot the costs with commissions and fees for each brokerage. Some brokers charge extra if you hold US funds or doesn't keep a certain minimum balance. On my case, I factor that plus the speed / reliability of their interface plus their exchange rate plus their efficiency to report info to CRA or how they handle a complain if the info CRA mismatches.

Rod
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Mar 10, 2010
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Are these fees waived if you have higher than $100,000 in your account, like they waive the monthly fee?
Deal Addict
Dec 31, 2006
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Any free ETF trading on IB yet?
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Jul 19, 2003
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gwplant wrote: Agreed...IB has always had imbedded fees that aren't all that transparent and you have to do a bit of digging to realize they aren't that much of low fee broker.
seems to be none for TFSA and non-registered trading fees look far lower than Questtrade. plus Questtrade went offline during a market drop in December,

note: I haven't signed up yet
Deal Addict
Oct 2, 2006
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i wish they would pay for transfer i would gladly transfer to them
Deal Fanatic
May 31, 2007
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The advantage with ib is their margin (2.4% over 100k) and exchange rates (almost spot)
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Jan 6, 2011
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Just called IB
1. API supported for both reg accounts; securities are limited to what's qualified by legislations.
2. RSP fees are waivable from $100K
3. TFSA subject to same fees
4. IB does NOT cover transfer out fee as they don't charge transfer out fee either.

Also note the limitations on the web page: no LIRA and no HBP/LLP withdrawals.

It's pretty clear cut, isn't it?
Last edited by LongLiveRFD on Jan 28th, 2015 2:12 pm, edited 1 time in total.
Newbie
Sep 5, 2010
3 posts
Toronto
Has anyone opened one of the registered accounts?

If so, could you post the trading permissions page screenshot (block out your personal information) in account management so I can see what IB is allowing us to trade?

I’m familiar with the government rules on what can/cannot be traded, but most banks restrict a bit further for various reasons. I wonder if IB is trying to maximize available products within the law.

I would ask IB myself (I’m a current non-registered customer) but if your with IB – you know how that usually goes.

Thanks.
Newbie
Dec 11, 2014
21 posts
10 upvotes
Brampton, ON
seandean wrote: Has anyone opened one of the registered accounts?

If so, could you post the trading permissions page screenshot (block out your personal information) in account management so I can see what IB is allowing us to trade?

I’m familiar with the government rules on what can/cannot be traded, but most banks restrict a bit further for various reasons. I wonder if IB is trying to maximize available products within the law.

I would ask IB myself (I’m a current non-registered customer) but if your with IB – you know how that usually goes.

Thanks.
I received an email from IB today about the availability of RRSP and TFSA accounts. They included this link in the email: https://www.interactivebrokers.ca/en/index.php?f=13406

I gave them a call and found answers to some of your questions:
  1. What securities can you trade? See link above. Looks like everything the government allows you to trade in these types of accounts
  2. Annual fees: $50 per year for RSP, payable quarterly ($12.50 / quarter). None for TFSA.
  3. Monthly fees: Minimum $10 USD per month in commission. This is calculated separately from your margin account. Fees waived if balance is > $100k.
  4. Initial funding minimum: None for RRSP, $5k USD for TFSA. The rep said funding must be in CAD but not sure if I can transfer US securities in-kind from my margin account for initial funding. You can definitely do it afterwards.
  5. $50 per withdrawal for RSP account. None for TFSA.
  6. No Home Buyer, Life Long Learning or RRIF available.
The RRSP account doesn't look attractive to me at all. TFSA is a pass if they are willing to combine the activity fee with my margin account. As it is, my RRSP and TFSA at Questrade are cheaper.
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Feb 25, 2014
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Going to transfer RRSP there.
Oh sada kehra bapu karda black nee, Jehra tere shahir (Toronto), Le lawan flat nee
Newbie
Dec 11, 2014
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MehtabS wrote: Going to transfer RRSP there.
Just curious: what attract you to their accounts? Do you trade a lot inside your RRSP?
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Feb 25, 2014
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scottwang wrote: Just curious: what attract you to their accounts? Do you trade a lot inside your RRSP?
Yea I trade few times a week. I like their trading platform as it allows rapid trading. The maintenance fee at @12.5/quarter doesn't matter much compared to banks which charge $10/trade.
Oh sada kehra bapu karda black nee, Jehra tere shahir (Toronto), Le lawan flat nee
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Jan 6, 2011
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Does IB send clients trades directly to exchange or they send to their own servers first? I read a few comments that people lost large sum of money to IB.
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Apr 25, 2004
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The Interface is just too complicated. I'm sure it's great for higher frequency traders, but for those just buying / selling 1-2 times a quarter, I'm good with the Big Bank discount brokerage.
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Feb 25, 2014
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LongLiveRFD wrote: Does IB send clients trades directly to exchange or they send to their own servers first? I read a few comments that people lost large sum of money to IB.
They are market maker so they do trade with you.
Oh sada kehra bapu karda black nee, Jehra tere shahir (Toronto), Le lawan flat nee
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Jul 17, 2008
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Since they don't have live data for quotes, how exactly you trade if you don't subscribe to their data? 6$ for TSE, another 6 for CVE, 1.5 for NASDAQ, 1.5 for NYSE, pretty expensive if you opt for those.

Do they have a 20 minute delay like questrade if you don't subscribe to their data? Basically how do you trade without live data, which commonly comes free with bank brokerages.

The commissions are extremely small, and the only reason IB would not be worth it if you trade less than 10-12 trades / year and don't have 100k to waive IB commission, or if you have a huge portfolio, where trading several hundred, to >1000 shares is common, at which point, that makes IB more expensive than brokerage banks. But I assume that would be the case only with a +1 mil portfolio

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