Personal Finance

Enrolling in security's DRIP at Questrade?

  • Last Updated:
  • Jan 25th, 2023 5:07 pm
Tags:
[OP]
Deal Fanatic
User avatar
Aug 19, 2001
5110 posts
65 upvotes
Vancouver

Enrolling in security's DRIP at Questrade?

I hold an etf (HCAL) in my Questrade account. Hamilton says they offer a true DRIP program for this etf.

Questrade customer support keeps telling me to fill out their form for Questrade's DRIP (where they use your cash to automatically make new security purchases)

They seem confused by the idea of a true DRIP, where the transfer agent distributes new shares in lieu of cash.

Has anyone managed to enroll in a security's DRIP at Questrade, or is this hopeless and I should look for a smarter broker?
3 replies
Deal Addict
User avatar
Jan 11, 2020
4221 posts
3464 upvotes
primordialSingularit…
At Scotia/TD I just call in the DRIP. Never done it via Questrade, but if you're having issues with the chat, that ain't good...I feel as though I've called/chatted in a DRIP at Questrade before though...Try a different agent.
Deal Addict
Jun 8, 2004
2111 posts
1210 upvotes
Oakville
grant wrote: I hold an etf (HCAL) in my Questrade account. Hamilton says they offer a true DRIP program for this etf.

Questrade customer support keeps telling me to fill out their form for Questrade's DRIP (where they use your cash to automatically make new security purchases)

They seem confused by the idea of a true DRIP, where the transfer agent distributes new shares in lieu of cash.

Has anyone managed to enroll in a security's DRIP at Questrade, or is this hopeless and I should look for a smarter broker?
Most brokerages, if not all, offer what is called a synthetic DRIP, where the brokerage receives the cash dividend from the issuer's transfer agent, and automatically buys whole units of the security, with no brokerage commission, leaving a small residual cash balance for the portion that is less than the price of one share.

As far as I know, the only place you can do a real DRIP and can get fractional shares (and discounted shares, if applicable) is if your shares are held at the transfer agent for the security.

In this case, TSX Trust is the transfer agent for HCAL, so you would have to transfer your shares from QT to TSX Trust to enroll in a real DRIP. Otherwise, you will have to enrol in the synthetic DRIP offered by QT.
Last edited by cba123 on Jan 25th, 2023 5:08 pm, edited 1 time in total.
Deal Addict
User avatar
Aug 7, 2010
1098 posts
455 upvotes
grant wrote: I hold an etf (HCAL) in my Questrade account. Hamilton says they offer a true DRIP program for this etf.

Questrade customer support keeps telling me to fill out their form for Questrade's DRIP (where they use your cash to automatically make new security purchases)

They seem confused by the idea of a true DRIP, where the transfer agent distributes new shares in lieu of cash.

Has anyone managed to enroll in a security's DRIP at Questrade, or is this hopeless and I should look for a smarter broker?
Questrade offers Synthetic Drip (your dividends/distributions are used to buy entire shares, not fractions). A while ago, I requested to drip all the investments in my TFSA using their chat, without any issue. Maybe things have changed.

Top