Opinions of investing with HSBC InvestDirect?

[hagbard]

Wondering if anyone here is using the HSBC InvestDirect and what they think of it. I'll probably go with their Prestige Program. How is it for ease of use online? Any hidden costs? Anyone use it for trading on Asian markets and what's involved?

(Was considering BMO's Investerline but they won't cover my transfer fees unless I put $200k with them, and a lot of other nonsense).

[tng11]

I have InvestDirect Prestige.

In general, I would say their platform is hard to navigate at times but their service has been better than TD Waterhouse. I can get a live representative to pick up right away when I call. It is $9.95 per trade and there has been no other hidden fees from what I see.

I have not used it for trading on Asian markets because their commissions are quite high for those (Prestige gets a 20% discount on commissions, and the structures are different by exchange- I would expect to pay over $100 for trades in some markets depending on size of the transaction)

Here's the fees for Asian trading:
http://investdirect.hsbc.ca/rate_and...l_trading.aspx

The advantage of Prestige is they will also allow you access to HSBC Premier and you get a free Chequing account (with free cheques, international withdrawals, money orders, etc.). You can also open international accounts and explore international investments this way. I trade Hong Kong equities through my HSBC Hong Kong account and pay a lot less commission than going through the Canadian InvestDirect. However, there are some restrictions placed on Canadian residents investing overseas.

One thing I don't like about InvestDirect is they review your account status each month, unlike TD which did it quarterly I believe.

[tng11]

Oh yes, I also forgot to mention they covered my transfer fees from TD Waterhouse without me even asking. I was expecting to pay the transfer fees as my account was around $55K when I did the transfer, but I found out on my last statement that TD had deducted the transfer fee and HSBC had reimbursed it. I went through a Premier account manager to open the InvestDirect account, so that may have been why.

[hagbard]

Oh yes, I also forgot to mention they covered my transfer fees from TD Waterhouse without me even asking. I was expecting to pay the transfer fees as my account was around $55K when I did the transfer, but I found out on my last statement that TD had deducted the transfer fee and HSBC had reimbursed it. I went through a Premier account manager to open the InvestDirect account, so that may have been why.

I'm going through the Premier account manager as well. So, with trading on the HK exchange, can you do it from here or online through the HK HSB? Bit confused on that one. Don't want to actually have to go to HK to trade.

[tng11]

I'm going through the Premier account manager as well. So, with trading on the HK exchange, can you do it from here or online through the HK HSB? Bit confused on that one. Don't want to actually have to go to HK to trade.

Your best option would be to go through the HK HSBC, as I mentioned InvestDirect has high commissions on foreign equities (although it isn't possible with most Canadian brokerages to trade foreign equities.)

You can request to open a HKG account through your account manager which is a pretty simple process. Then you can login online to the HKG website and trade HK equities there with much lower commissions. Moving money between foreign HSBC accounts is easy, transfers are done online and in real time.

[hagbard]

Sounds good. I'll have her do that.

[yyzvoyageur]

I was expecting to pay the transfer fees as my account was around $55K when I did the transfer, but I found out on my last statement that TD had deducted the transfer fee and HSBC had reimbursed it. I went through a Premier account manager to open the InvestDirect account, so that may have been why.

Are you over $100K in your InvestDirect account now? They didn't give you Prestige on account of your Premier status, did they? Just curious because my InvestDirect account is hovering around $63K right now.

[tng11]

Sounds good. I'll have her do that.

If I were you, I would check more carefully with the account manager if she knows of any local restrictions in HK, or contact the HK HSBC before doing so. What I forgot to mention is that my HK account is registered with an HK address (but use e-statements) and HK identity card. (Therefore, the HK HSBC still thinks I'm permanently residing in HKG).

Your scope obviously would not be limited to HK, I've been in touch with their Offshore (based in Jersey) division and the account managers there seem a lot more experienced with tax implications and investing in foreign countries.

Are you over $100K in your InvestDirect account now? They didn't give you Prestige on account of your Premier status, did they? Just curious because my InvestDirect account is hovering around $63K right now.

Yes, I am over $100K in InvestDirect alone right now, but have almost no assets on their retail side. When I opened the account I also wrote a cheque to deposit in the cash balance so I immediately got the Prestige program. I was told that even if I had i.e. $300K in other HSBC products and a qualifed Premier client, but only $70K in combined InvestDirect accounts that I would not qualify for the Prestige program.

[hagbard]

So apparently there's no problem with me investing on Asia markets with my Investor Account, but there are problems if I want to do it through my RRSP. Why is that? She said she's never heard of anyone wanting to do that.

[yyzvoyageur]

Does anyone know what you lose on foreign exchange with InvestDirect? If I wanted to purchase US-based ETFs, there would be a currency conversion involved and I couldn't find anything concrete on their website with regard to what they charge. I understand 1.5% is about average.