Best brokerage for GIC's

choclover wrote: ↑I realize there are only a handful of people who purchase GICs, but for those that do which brokerage do you find best for purchasing GIC's. The most important features to me are as follows:
1. No purchase fees for GIC's
2. CDIC-coverage
3. competitive GIC interest rates (not all GIC issuers are the same of course but I have found some issuers offer more competitive rates than others)
4. smaller minimum purchase amounts give more flexibility
5. self-serve purchase is nice but not a deal breaker for me (I can just as easily phone in and talk to a human)

Perhaps there are other features I am not thinkiing of so please feel free to tell me which brokerage you prefer. Thanks.

Ive never heard of a single broker charging money to invest in GICs ever. Generally brokerages are paid by the issuers to sell GiCs on their behalf.

A discount brokerage is an easy, self-service option. I use Virtual Brokers and their trading window for stocks has GICs as well. Their platform makes it so that buying a GIC literally takes seconds. They offer many GICs from many issuers such as B2B Bank, Home Trust, Concentra, Effort Trust etc. As an example, the highest 5 yr GIC is currently 2.81%.

The problem though is, it is actually better off going through the issuer today due to low interest rates and the fact that most issuers would rather not pay commission. If you have online accounts with some of the best issuers, you are fine. Motive Financial (owned by Canadian Western), Oaken (Home Capital), Implicity(Entegra Credit Union, ) etc. have generally have had the highest GIC rates. Opening a free savings account at these places, then buying the GIC when needed is probably the highest yield option. Currently the highest I see is 3% for 5 yr GIC with Oaken and Implicity . The big drawback is you have to do the work yourself.

,Finally, while not the highest yielding in most cases, my credit union back home, my banker will give me the highest 5 yr rate from the big 6 banks and beats it by 0.25%. Ive had a good relationship with my banker and she has done this for me. Mind you, I still could probably find a better rate, but for me supporting the local business in my small hometown is worth it. The point I am making though is that if you want to go with a bank, the staff may be able to do something for you so it might not hurt to ask the staff and see if they can give you a better rate.

I have been with BMOIL since 2000, but buy GICs only in our registered accounts. The minimum is $5000, which is fine for me but likely not for everyone. In today's online world, I would not restrict myself to a brokerage for GICs for non-registered accounts.

We bought 3 GICs from Peoples Trust as their rates were among the highest and we have HISA with them. Was done online, very easy process, the minimum is 1K.

The last GIC, from Equitable Bank, I bought through Questrade, our regular broker. Cant be done online, have to call in, minimum is 5K. All their current GIC offerings are on the last page(s) of regularity updated Bonds Bulletin.

No fees/commissions.

Don't go with td direct investing. You have to phone during trading hours to buy gics. Its ridiculous. I heard itrade is good

Latebuyer wrote: ↑ Don't go with td direct investing. You have to phone during trading hours to buy gics. Its ridiculous. I heard itrade is good

But sometimes you don't have a choice if you're buying it inside your RRSP. I've asked several times over several years why they don't automate the GIC buying process like some other banks do, but I always get the same ridiculous answer that it's because rates are always changing.