Investing

RBC Direct Investing: You need to have cash on hand to place buy orders in RSP/TFSA

  • Last Updated:
  • Jan 23rd, 2020 8:34 pm
[OP]
Newbie
Dec 3, 2008
45 posts
2 upvotes
Vancouver

RBC Direct Investing: You need to have cash on hand to place buy orders in RSP/TFSA

This morning I tried to place a buy order and was surprised that the system told me "insufficient buying power" even though I have enough money in RBC Savings (the RBF20xx seriers) to cover the buy. Then I called customer service and was told that they are doing this "according to the Income Tax Act". Anyone else got the same thing?

I tried my RSP account in TD, which still allows buy orders as long as you have money in savings.
3 replies
Deal Addict
Sep 19, 2009
1924 posts
761 upvotes
Toronto
Registered accounts in Canada are regulated as "cash" accounts. You have to have a cash balance in order to place an order.
[OP]
Newbie
Dec 3, 2008
45 posts
2 upvotes
Vancouver
But Savings is an equivalence of cash and they allowed it before, and other financial institutions still allow it.
Deal Addict
May 22, 2003
4372 posts
1907 upvotes
Vancouver
Yes, in the past with RBC DI I was able to purchase securities first and then transfer cash immediately after or sell RBF 2010 to cover, but not any more. What you can do now is place a sell order for RBF2010 first, it will count towards your cash balance, then you can purchase the securities immediately after.

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