Investing

Any benefits to having accounts at various Canadian brokerages?

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  • Sep 16th, 2021 10:10 am
[OP]
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Dec 14, 2017
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Any benefits to having accounts at various Canadian brokerages?

Currently, my spouse and I have all of our brokerage accounts in one basket (Questrade).

Is there value in opening accounts elsewhere? For instance, are there benefits if you have a self-directed account at BMO with a value over $XX,XXX?

If you have account with value over $100k, do you get perks at Wealthsimple?

Curious what everyone's opinion is on this.

Thanks
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May 11, 2014
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CIBC over $100k, you get CIBC Smart Plus Chequing for free so no minimum balance and free credit card.


HSBC, have $1 million, you get HSBC Jade and it's benefits


TD there were president's status(?) At (?). Not sure of the benefits. Someone can chime in on it.
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May 31, 2018
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We currently have multiple accounts at Scotia, BMO and TD, opened to take advantage of various offers. By the end of this year we’ll have a single joint non-reg iTrade account, a single corporate account at TD and our TFSA’s and RRSP’s at TD.

A year ago we had 9 accounts (2 Corp, 2 TFSA, 2RRSP, 3 non-reg), and once the sign up bonuses were done it just became added complexity for no actual gain whatsoever. Being that we put zero value on private banking (or the like) or any of the other common perks advertised, I’d recommend simplicity over marketing driven benefits that may not actually be beneficial.
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Aug 4, 2014
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We have 7 accounts at Questrade (2 TFSAs, 2 RRSPs, my LRSP and RIF, Joint Margin) and don’t plan to spread them around. Both are Platinum members, but I think we used “the dedicated phone line” only once or twice.

The only reason we have multiple HISAs at various alternative lenders/credit unions is to stay under 100K limit in each to be eligible for CDIC.

I did consider at some point opening a non-registered account with Interactive Brokers or Wealthsimple (to further save on commissions) But decided to stick with minimal trading, buying mostly ETFs, so not worth the extra hassle.
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Dec 12, 2009
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I have accounts with HSBC and CIBC and I think that is one brokerage too many. The biggest problem with multiple account especially non registered is the problem with keeping track of ACB when holding the same equity in more than one account. It is so much easier to have all the eggs in a single basket.
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7865875 wrote: Currently, my spouse and I have all of our brokerage accounts in one basket (Questrade).

Is there value in opening accounts elsewhere? For instance, are there benefits if you have a self-directed account at BMO with a value over $XX,XXX?

If you have account with value over $100k, do you get perks at Wealthsimple?

Curious what everyone's opinion is on this.

Thanks
Can you offer a little clarification? First you asked about accounts but then specifically singled out trading account.
Are you asking is there is any benefit to have a chequing with bank A, RRSP at bank B, non-registered trading account at bank C vs. having all of them with Bank D?
At the end of the day I don’t think it matters a whole lot.

Are you asking is there any benefit in having a single non-registered trading account at bank A vs. two non-registered accounts at bank A and bank B?
If this is what you are asking, there are some benefits in holding one account. Fees. All the discount brokerages have minimum requirements. e.g. $100 annual maintenance fee if you have less than $10 000. For example if you only have a total $15000 it would not make sense to open two accounts. And there are perks such as lower trading fees. I think CIBC charges $9.99 per trade if you have less than $25000 and $6.95 afterwards. But if you happen to have a million dollars in each account then these would not matter to you.
There is also accounting when it comes to taxes. Having one T5 vs multiple T5s is a convenience. And as will888 pointed out if you happen to have the same equity in the different trading accounts calculating the ACB becomes more work.
These may not be substantial benefits but still nice to have.
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Feb 1, 2012
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CIPF provides coverage of up to $1M in the event of broker insolvency. There is separate $1M coverage for several account types including general accounts, registered retirement accounts and RESPs. Here is the coverage detail: https://www.cipf.ca/cipf-coverage/coverage-policy. If you have more than $1M in any of the specified account types you are at risk if your broker becomes insolvent. Big bank brokers are probably very low risk, but consider splitting accounts across brokers if you are over the limit more than you would want to lose in any category.

Another consideration for using multiple brokers is if one has a major system or access glitch you could still access another broker's system. I recall having trouble making some trades in TDDI about 5 years ago, then read later they were hit by a DDOS attack. Again, with big brokers it's probably a very low risk of anything more than a short outage.

TDDI has President's Account for total holdings greater than $500k. The only perk I know of is separate phone # and priority queue for shorter telephone wait times. Hold times are usually very short, but during the COVID and cannabis times, waits could still be long. Someone from TDDI called me once to say that at $2M total balance they offer a dedicated agent for account support. I make so few trades is not an issue for me so I have not pursued it further.
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[OP]
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Dec 14, 2017
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rfduser199 wrote: Can you offer a little clarification? First you asked about accounts but then specifically singled out trading account.
Are you asking is there is any benefit to have a chequing with bank A, RRSP at bank B, non-registered trading account at bank C vs. having all of them with Bank D?
At the end of the day I don’t think it matters a whole lot.

Are you asking is there any benefit in having a single non-registered trading account at bank A vs. two non-registered accounts at bank A and bank B?
If this is what you are asking, there are some benefits in holding one account. Fees. All the discount brokerages have minimum requirements. e.g. $100 annual maintenance fee if you have less than $10 000. For example if you only have a total $15000 it would not make sense to open two accounts. And there are perks such as lower trading fees. I think CIBC charges $9.99 per trade if you have less than $25000 and $6.95 afterwards. But if you happen to have a million dollars in each account then these would not matter to you.
There is also accounting when it comes to taxes. Having one T5 vs multiple T5s is a convenience. And as will888 pointed out if you happen to have the same equity in the different trading accounts calculating the ACB becomes more work.
These may not be substantial benefits but still nice to have.
I am speaking of brokerages; however, I understand that some brokerages offer perks like premium bank accounts. I'm basically wondering if anyone's aware of any good perks like that.
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Apr 29, 2012
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7865875 wrote: I am speaking of brokerages; however, I understand that some brokerages offer perks like premium bank accounts. I'm basically wondering if anyone's aware of any good perks like that.
This is a different question from the one in the title. You are basically asking what kinds of perks does bank A vs Bank B vs bank C offer.
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Jan 24, 2013
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Rainy River
I have separate accounts as follows:

National Bank Direct Brokerage- for free ETF trades provided you trade 100 shares or more, therefore free Norbert's Gambit using DLR/DLR.U
Questrade- cheap $4.95 trades for other stocks or free ETF's buying anyway if fewer than 100 shares purchased
CIBC Investor's Edge- kept over 100K in edge, in order to get Smart Plus Account without keeping a $6,000 minimum balance

In the last couple weeks now National Bank has eliminated commissions for everything other than options, so I will use them exclusively other than I may keep Edge open for a while but won't place trades with them until I liquidate my Aventura points.
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7865875 wrote: I am speaking of brokerages; however, I understand that some brokerages offer perks like premium bank accounts. I'm basically wondering if anyone's aware of any good perks like that.
For having $100,000 of assets with CIBC, I get a bank account with no fees and a free premium credit card. Having $100,000 of assets with HSBC qualifies for premier account which give preferential access to call in support. At the end of the day, the perks are nice but scattering investments around to harvest the perks would not result in a net benefit. Once you have a free bank account and credit card, how many more do you need?
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It is good to have a 2nd account as backup, not just for brokerage accounts, but for bank accounts and credit card accounts too. If technical problems lock you out of one, at least you have a backup account to conduct your day to day business. Technical problems are more frequent these days unfortunately.
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Jun 28, 2018
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For future sanity keep it simple and have everything with one brokerage, if possible.

Keeping track of paper work such as trade statements and confirmations becomes easier.

If you buy a stock across multiple brokerages then tracking costs is a pain.
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I have my RRSP and TFSA at CIBC IE, and that gets me a free Smart Plus account with a free credit card.
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johnnychi wrote: For future sanity keep it simple and have everything with one brokerage, if possible.

Keeping track of paper work such as trade statements and confirmations becomes easier.

If you buy a stock across multiple brokerages then tracking costs is a pain.
Not really. Generally I will trade them as separate accounts.

Besides most of my accounts have seperate purposes and registrations anyway.

I have HSBC, CIBC, Virtual Brokers and Wealthsimple.
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Mar 12, 2017
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Keeping it simple is better, but sometimes, you have to to get better deals.

I have a TSFA with Wealthsimple because it reduces my fees. I just have around 15k, but I started with under 5k, so I often do smaller trades and having a cost to buy or sell would therefore be a bigger problem.

But then Wealthsimple doesn't offer the QESI, so I had to open a RESP elsewhere (Questrade).

Now I'm thinking of having the TSFA in NBDB, because I want to start buying stocks from the USA, which isn't optimal on Wealthsimple.
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I keep my TFSA with Questrade to leverage it for margin investing as it is the only brokerage that allows for it. All of my other accounts are with IB for the low margin rates
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nikels21 wrote: I keep my TFSA with Questrade to leverage it for margin investing as it is the only brokerage that allows for it. All of my other accounts are with IB for the low margin rates
VirtualBrokers offers this as well.
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I use TDDI and IB brokerages. TD because they have a nearby branch and I have used their banking and brokering for a long time, their TDDI brokerage is easy to use and works well with the bank part to quickly and easily move money around, very useful at tax time.

However the TDDI brokerage margin interest rates (like most of the other Canadian brokerages) are a lot higher than IB and that’s the main reason I now use IB for most of my investing. Low commissions too. Mostly I use the IBKR mobile app. IB is oriented to short term traders but also works for long term investors. But their brokerage online system has glitches (minor logon and other issues) more often than TD.

IB recently started making their Canadian MasterCard available for clients and it uses the client margin loan, so it means the credit card interest rate could be as low as about 1%. I may give this a try, but need more details on how it works.
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Have accounts at multiple brokerages. Originally thought that I would consolidate at one point after retiring, but with all of the security/data breaches occurring in recent years at various types of institution, I prefer to not keep all of my eggs in one basket.

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