Personal Finance

Question about opening Questrade tfsa?

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  • Feb 15th, 2010 12:28 pm
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Jr. Member
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Feb 4, 2009
127 posts
Toronto

Question about opening Questrade tfsa?

I already maxed out my tfsa for the year 2009. Im thinking of opening a TFSA with questrade now. So is it possible that I open it now and then contribute 5K on Jan 2010? And how much time it takes to open it?

Thanks
15 replies
Deal Addict
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Apr 29, 2002
3855 posts
47 upvotes
Mississauga
Yes, you can do that.
Deal Guru
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Jun 26, 2005
10111 posts
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Toronto
spiderweb wrote: I already maxed out my tfsa for the year 2009. Im thinking of opening a TFSA with questrade now. So is it possible that I open it now and then contribute 5K on Jan 2010? And how much time it takes to open it?

Thanks
Yup, you can.

How long? Here's the fastest method :

1) fill out online forms = 20min?

2) print forms and sign, then scan and email to Questrade

3) scan a void cheque (from your bank) and email to Questrade

4) scan your drivers' licence (both sides) and email to Questrade

5) fund your account via Bill Payment online, in your online banking account to Questrade

6) Done


So I'm guessing fastest..... 5 days?
Deal Addict
May 25, 2009
1878 posts
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I believe you need to fund the account with a minimum of $1,000 in order to open an account. So you can't really open an account now and fund it in January. You could open the account in early January and fund it. If I remember accurately it only took about 3 days to open and fund my TSFA this year with Questrade.
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Apr 29, 2002
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calgaryhhr wrote: I believe you need to fund the account with a minimum of $1,000 in order to open an account. So you can't really open an account now and fund it in January. You could open the account in early January and fund it. If I remember accurately it only took about 3 days to open and fund my TSFA this year with Questrade.
This is false - I did exactly that with both mine and my GF's 2010 TFSA - opened but deposited no money until 2010
Member
Jan 20, 2009
448 posts
29 upvotes
you need minimum 1000$ to start trading
but account can be opened with 0$ balance.
Deal Addict
May 25, 2009
1878 posts
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simms wrote: This is false - I did exactly that with both mine and my GF's 2010 TFSA - opened but deposited no money until 2010
Interesting.

On Questrade's TFSA account page it states: "No annaul fess, no inactivity fees, and a low account-opening minimum of CAD $1000." http://www.questrade.com/trading/tax_free.aspx
Deal Addict
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Apr 29, 2002
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Mississauga
calgaryhhr wrote: Interesting.

On Questrade's TFSA account page it states: "No annaul fess, no inactivity fees, and a low account-opening minimum of CAD $1000." http://www.questrade.com/trading/tax_free.aspx
Hmm, I see the print. However, I see my TFSA when I log into myQT. It does say "Status: Unallocated" instead of "Status: Active", but the date created is definitely in 2009 and I have nothing in it.
Banned
Feb 17, 2007
3190 posts
203 upvotes
It's better to transfer in $1,000 at first, so they can setup your Penson account.

I have opened 3 accounts with QUestrade, they are all Registered (RRSP and TFSA).

First one: TFSA
So, I was new, and didn't deposit that much to a new broker which I have no prior experiences with. So, I fund the account with only $1500. I called up Customer service after 3 business days, and they mentioned that Penson has been setup and I will be able to see the fund next day (12am).
The next day 12am, I saw my fund, then around 9am, I was able to trade.
It took less than 5 Business days.

Second account: RRSP
Funded $3,000 when it first opened and I was able to trade within 4 business days.

Third Account: RRSP for my sister
Funded $5,000, and the Penson was not setup even after 8 business days. So, I called in and they all told me that the fund will be deposited overnight.
Yeah right, still nothing. So, I was sitting at my work desk, and used the online Live Chat and got Yang online. She is the best, I was able to trade the next day.

So, from my experiences, even if you want to contribute $5,000 to a new account, don't transfer $5,000 in yet. Try $1,000, then after you have received the funding in your new account, you can contribute the rest.
Sr. Member
Oct 31, 2007
567 posts
9 upvotes
Canada
does a personal cheque need to be sent to open the account? I just opened my account, filled out forms and send them my DL via email. I didnt see where it asked for a personal cheque. I went to my banks online site and added a payee.

To make a deposit do i just pay this payee or is there more info they want (ie: Cheque)
Banned
Feb 17, 2007
3190 posts
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As for the void Cheque, it's required if you want to withdraw money out. If not, you don't need to send in a void cheque. I was able to trade with my first account before i sent in the void cheque lol.
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Jul 27, 2005
344 posts
Ottawa, ON
ACC-Major wrote: As for the void Cheque, it's required if you want to withdraw money out. If not, you don't need to send in a void cheque. I was able to trade with my first account before i sent in the void cheque lol.
So, once I funded the $1000 to get the pension account opened, can I withdraw the fund partially? Is there a minimum balance required on the Questrade TSFA? Will there be any fee incurred when the balance is below $1000?
Banned
Feb 17, 2007
3190 posts
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ebizimage wrote: So, once I funded the $1000 to get the pension account opened, can I withdraw the fund partially? Is there a minimum balance required on the Questrade TSFA? Will there be any fee incurred when the balance is below $1000?
Once you are setup, you can withdraw all your funds out; however, they will suspend your trading platform a few days later which allows you to sell, but can't buy. Min. balance is $250 to keep it active.
Member
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Jul 27, 2005
344 posts
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ACC-Major wrote: Once you are setup, you can withdraw all your funds out; however, they will suspend your trading platform a few days later which allows you to sell, but can't buy. Min. balance is $250 to keep it active.
Thanks. So, it sounds like that $250 has to be cash in the account? Not the value of the holding, right?

Also I'm a bit confused about that USD portion. Like it says I can keep USD in my RSP TSFA account, but any day that I trade in USD securities, there's a $5 commission. So, does it mean on a day if I buy USD stocks with my USD cash, I still have to pay $4.95 trade + $5 commission for that transaction?

If I buy the USD stock with my CAD cash and pay them that conversion fee, do I have to pay $4.96 trade + 0.5% exchange fee + $5 commission?
Banned
Feb 17, 2007
3190 posts
203 upvotes
ebizimage wrote: Thanks. So, it sounds like that $250 has to be cash in the account? Not the value of the holding, right?

Also I'm a bit confused about that USD portion. Like it says I can keep USD in my RSP TSFA account, but any day that I trade in USD securities, there's a $5 commission. So, does it mean on a day if I buy USD stocks with my USD cash, I still have to pay $4.95 trade + $5 commission for that transaction?

If I buy the USD stock with my CAD cash and pay them that conversion fee, do I have to pay $4.96 trade + 0.5% exchange fee + $5 commission?
The $250 minimum can be a combination of stocks, bonds, gold, and cash (USD or CAD), and whatever you have.

Every time you trade USD securities, you will incur an extra $5. For say you have 10,000 in CAD in your account, and you bought a US security costs 9,000 USD. You will be hit with CAD to USD exchange rate and an extra $5 on top of that. Also, don't forget about the regular commission fee of 4.95-9.95 USD, and ECN fee (if applicable).

You pay 0.5% exchange fee only if you set your Currency Settlement to CAD only. That means everything settle in CAD, all the USD cash in the account will automatically be converted to CAD the next day. However, that extra $5 can be avoided this way.

It's best if you call Questrade to confirm.
lol, I am placing my life savings with Questrade. I have my RRSP, Spousal RRSP, both TFSA, and a Margin joint account with Questrade. I am also planning on opening a RESP with them. If Questrade goes belly up, it would a pain in the neck to get all my money back.

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