Personal Finance

HSBC Premier+Jade Thread

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  • Sep 10th, 2020 12:01 am
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Newbie
Mar 11, 2019
10 posts
10 upvotes
I have a question on international account openings. Does anyone know what happens when you downgrade Premier to Advance in host country (Canada)? Do the accounts domiciled in other countries get downgraded automatically, or do I need to initiate downgrades myself? Any fees? Even HSBC counts investment against the 100K minimum balance, it often makes more sense to use Interactive Brokers and HISA at online banks (I'm willing to keep 5k to maintain Advance though) . However, international account service is where other banks fall short.
Thanks.
Moderator
User avatar
Mar 23, 2004
41614 posts
7606 upvotes
Markham
yfkuang wrote: I have a question on international account openings. Does anyone know what happens when you downgrade Premier to Advance in host country (Canada)? Do the accounts domiciled in other countries get downgraded automatically, or do I need to initiate downgrades myself? Any fees? Even HSBC counts investment against the 100K minimum balance, it often makes more sense to use Interactive Brokers and HISA at online banks (I'm willing to keep 5k to maintain Advance though) . However, international account service is where other banks fall short.
Thanks.
i would think you will need to downgrade/cancel them yourself. Probably best to ask your RM.
Newbie
May 11, 2018
24 posts
9 upvotes
franklin777 wrote: I’m with CIBC and TD DI right now. Debating if I should move my direct investment to HSBC and upgrade to Jade. but a few things concerns me:
1) Invest direct does not have mobile app.
2) Invest direct RSP RESP TFSA seems don’t offer US currency trading. Do they only offer USD with no registered account?
3) does it have a trading platform? I am using TD advanced dashboard and CIBC MarketLens now.
1. As far as I know, that's correct. Personally, I think that's a wise omission on their part, but that's just me.
2. I believe that's correct, but don't quote me on it. I have USD cash accounts, but no other USD accounts.
3. Their online functionality is consistently rated towards the low end. They've got some stock screening tools, etc., but if you're an active trader you may not find their platform sufficient for your purposes. That said, telephone customer service has always been fantastic and Jade customers do get a priority line.
Sr. Member
Mar 7, 2008
586 posts
150 upvotes
Leask
pedanticus wrote: 1. As far as I know, that's correct. Personally, I think that's a wise omission on their part, but that's just me.
2. I believe that's correct, but don't quote me on it. I have USD cash accounts, but no other USD accounts.
3. Their online functionality is consistently rated towards the low end. They've got some stock screening tools, etc., but if you're an active trader you may not find their platform sufficient for your purposes. That said, telephone customer service has always been fantastic and Jade customers do get a priority line.
I agree on phone support for InvestDirect. Is very good.

I am ok with there online platform but no trading app.

You can definitely trade in USd. In fact, you can trade is so many region around the world I lost count!
Sr. Member
Sep 22, 2005
675 posts
127 upvotes
BC
franklin777 wrote: I’m with CIBC and TD DI right now. Debating if I should move my direct investment to HSBC and upgrade to Jade. but a few things concerns me:
1) Invest direct does not have mobile app.
2) Invest direct RSP RESP TFSA seems don’t offer US currency trading. Do they only offer USD with no registered account?
3) does it have a trading platform? I am using TD advanced dashboard and CIBC MarketLens now.
1. no mobile app.
2. you could still buy US equities in RESP, RSP and TFSA, but you will hit with bad currency exchange and dividends will be converted to cad, at least that's what I was told when I inquired about it. They don't have a US component in US currency within these registered accounts.
3. HSBC DI only has the bare bone service, and some weird setup, like buying etf, you have to click the etf prospectus link, or download the prospectus before you can click buy. When you purchase stocks, there are so many places to click, then enter trading password etc. It's very cumbersome. TD DI interface is much better. But starting in April, active traders will pay zero commissions to trade.

I agree the phone support is good, almost no wait.
Member
Dec 27, 2017
203 posts
92 upvotes
Ontario
franklin777 wrote: 1) Invest direct does not have mobile app.
2) Invest direct RSP RESP TFSA seems don’t offer US currency trading. Do they only offer USD with no registered account?
3) does it have a trading platform? I am using TD advanced dashboard and CIBC MarketLens now.
1) Correct. But I've never needed to do trading on my phone. In fact I wouldn't really want to. But you can always access the investdirect website from your mobile browser if you really need to.

2) Last I checked that is correct. The USD trading was only available for non-registered accounts. You should check with your accountant, but given some of the recent tax changes with cross border and passive investment categorizations, you may want to keep your USD investments in a non-registered account and only invest in CAD denominated investments in retirement accounts.

3) The trading platform is its website, and it is minimal in functionality. While they are marketing a push for active trading, giving $0 commissions for active traders, the trading tools are really not designed for active traders.
Deal Addict
Oct 4, 2009
2583 posts
1447 upvotes
Montreal
Optimizer88 wrote: but given some of the recent tax changes with cross border and passive investment categorizations, you may want to keep your USD investments in a non-registered account and only invest in CAD denominated investments in retirement accounts.
What changes are you referring to?
Deal Addict
Oct 4, 2009
2583 posts
1447 upvotes
Montreal
wheelerdealer wrote: A further consideration is that not all branches have a Jade RM. As a consequence, you may be dealing with someone that doesn’t know the ropes as well, even if they are the branch manager. My Jade RM also handles their private banking clients.

Their website branch locator showed which branches had “Jade Services” available. However, it seems to be down right now. I chose to deal with a branch further away to ensure that I had a Jade RM (and also had ample parking!). It seems like most are located at a major city’s main branch or near Asian communities.
FWIW my Jade RM is more than happy to meet me at a branch of my choosing or even at my home. I’ve never set foot in his branch.
Member
Dec 27, 2017
203 posts
92 upvotes
Ontario
S5 wrote: What changes are you referring to?
The PFIC categorizations are continually shifting. It used to be just CAD mutual funds that were a concern, but the concern has expanded to some other types of investments (including CAD ETFs and some CAD stocks). So many investment advisors over the past 4 or 5 years are starting to suggest considering keeping USD denominated in non-registered and CAD denominated in registered if your diversification allocations work to do so. Some further details: https://www.bnnbloomberg.ca/are-you-a-u ... s-1.576805 and https://www.taxintl.com/private-canadia ... pfics.html
Deal Addict
Oct 4, 2009
2583 posts
1447 upvotes
Montreal
Optimizer88 wrote: The PFIC categorizations are continually shifting. It used to be just CAD mutual funds that were a concern, but the concern has expanded to some other types of investments (including CAD ETFs and some CAD stocks). So many investment advisors over the past 4 or 5 years are starting to suggest considering keeping USD denominated in non-registered and CAD denominated in registered if your diversification allocations work to do so. Some further details: https://www.bnnbloomberg.ca/are-you-a-u ... s-1.576805 and https://www.taxintl.com/private-canadia ... pfics.html
Thanks for the reply.

PFIC only applies to US tax filers. Is the poster you were responding to under obligation to file US taxes? I have no idea but for the vast majority of Canadians with no US tax obligations, doing as suggested is both unnecessary and counterproductive.
Member
Dec 27, 2017
203 posts
92 upvotes
Ontario
S5 wrote: PFIC only applies to US tax filers. Is the poster you were responding to under obligation to file US taxes? I have no idea but for the vast majority of Canadians with no US tax obligations, doing as suggested is both unnecessary and counterproductive.
I do not know the OP. But many Canadians who winter in the States when they retire, etc. do need to consider the residency issues and potential PFIC issues even if they are not US filers when younger - which is why many professionals are recommending it. I agree it can be unnecessary if the laws stay exactly as they are now, and they never plan to have any need to file US taxes. I can't think of a case where it is counterproductive unless it would require shifting assets and incurring capital gains to do so. But every individual's tax situation is unique and they should speak with their own advisors instead of relying on RFD advice. RFD is just intended to highlight potential issues for people to explore with their own professionals.
Deal Addict
Oct 4, 2009
2583 posts
1447 upvotes
Montreal
Optimizer88 wrote: I do not know the OP. But many Canadians who winter in the States when they retire, etc. do need to consider the residency issues and potential PFIC issues even if they are not US filers when younger - which is why many professionals are recommending it. I agree it can be unnecessary if the laws stay exactly as they are now, and they never plan to have any need to file US taxes.
Mentioning that your advice only applied to a very small subset of Canadian residents with the specific attributes you now list and which may or may not apply to the poster you were replying to would have been helpful and avoided this sidebar.
I can't think of a case where it is counterproductive unless it would require shifting assets and incurring capital gains to do so.
Holding US listed(not USD denominated because plenty of PFIC listed on TSX can be USD denominated) ETFs inside RRSPs can be advantageous for tax withholding and tax efficiency reasons. Similarly holding Canadian equity ETFs in unregistered can be beneficial due to the favourable treatment afforded to Canadian dividends in comparison to foreign income which is taxed at an investor’s marginal rate. Doing the opposite with no US tax filling obligations seems counterproductive.

Indeed every individual’s tax situation is unique and it is best not to project one’s own situation onto others, or at least not without specifying the reason for the recommendation. Recommending talking to professionals is all well and good but I’d wager many RFDers don’t use an accountant and those that do are highly unlikely to have one that specializes in cross border issues. Understandable since many have no need.Winking Face
Member
Dec 27, 2017
203 posts
92 upvotes
Ontario
S5 wrote: Indeed every individual’s tax situation is unique and it is best not to project one’s own situation onto others, or at least not without specifying the reason for the recommendation. Recommending talking to professionals is all well and good but I’d wager many RFDers don’t use an accountant and those that do are highly unlikely to have one that specializes in cross border issues. Understandable since many have no need.Winking Face
Realistically if the RFDer is eligible for Jade they have at least a minimal amount of resources, and likely should have professional advice on tax issues.
Deal Addict
Jan 16, 2009
3940 posts
1554 upvotes
Toronto
Optimizer88 wrote: This matches my experience as well. Within a few days of having submitted the transfer paperwork request to my RM the Jade status was updated and MC as well as new debit card was delivered - well before the assets made their way through the lengthy transfer delays.
My RM didn't do anything until the asset is transferred. Took me almost a month to get my jade credit card.
Deal Fanatic
Oct 1, 2004
6203 posts
620 upvotes
Toronto
Anyone have experience being a Jade member in Canada, then opening accounts in mainland China? Is the currency exchanges competitive when transferring fund from China to CDN?

Also according to the referral page

https://www.hsbc.ca/share-the-experience/

Why does the left column all say Jade $1000?

For example it says Jade $1000 then Personal $50. Does that mean if a Jade member refer a new member that opens a personal account, the Jade member receive $1000, while the new member receives $50?

If a Personal account holder redder a new member that opens a Jade account, the personal account holder will receive $50, while the new Jade member will receive $1000?

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