Investing

Is there a way to avoid TD Investing fees?

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  • Jun 6th, 2020 4:45 pm
[OP]
Newbie
Feb 7, 2019
82 posts
31 upvotes

Is there a way to avoid TD Investing fees?

I usually buy small amounts of stock (500-600$) and the 9.99$ TD charges for each transaction eats up a lot of the appreciation I try to get from the trade.
Is there a way I can avoid these fees? Does TD offer options that do not include this fee? Or are there other brokers that do not charge a fee when you buy/sell stock?
28 replies
Deal Addict
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May 11, 2014
4468 posts
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Iqaluit, NU
Unless you are an active trader, no. Your only options really are...

Move to a cheaper brokerage.
-Wealthsimple Trade is free
-VB starts at $1.99, IB is similar and 1 cent
-CIBC, Desjardins, start at $6.95
-Qtrade is $8.45
-Scotia iShares, NBC, Questrade, Qtrade for free ETF purchases

Buy mutual funds
-with the amounts you are investing at a time, unless you move brokerages, it isn't worth buying individual stocks

Save up before buying stock
-i use Virtual Brokers, CIBC and Wealthsimple Trade and manage accounts in Questrade for some people
and the trades I perform at each are done according to their commission
-VB I have graduated a 1 cent per share so I buy freely when I want
-CIBC charges $6.95, so my minimum stock value purchase is always $5000
-Wealthsimple Trade I buy whenever as well (but this is fun money to try it out so I don't strategize)
-Questrade is ETF only for who I manage

If you are adamant on staying with TD, you need to change how you invest. I would recommend going TD e-Series is you really want to buy $500 at a time. If you want to stick with stocks, save up at least a few thousand. At $10 a trade, you are giving up 2-4% of your initial investment (2% to buy and possibly another 2% to sell).

If you want to stick to $500 and stocks, go with the many free/cheaper options above. Wealthsimple Trade would be ideal, just keep in mind, not all stocks listed are tradable.

TD is not competitive for individual stocks for small players.
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May 15, 2016
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xgbsSS wrote: Unless you are an active trader, no. Your only options really are...

Move to a cheaper brokerage.
-Wealthsimple Trade is free
-VB starts at $1.99, IB is similar and 1 cent
-CIBC, Desjardins, start at $6.95
-Qtrade is $8.45
-Scotia iShares, NBC, Questrade, Qtrade for free ETF purchases

Buy mutual funds
-with the amounts you are investing at a time, unless you move brokerages, it isn't worth buying individual stocks

Save up before buying stock
-i use Virtual Brokers, CIBC and Wealthsimple Trade and manage accounts in Questrade for some people
and the trades I perform at each are done according to their commission
-VB I have graduated a 1 cent per share so I buy freely when I want
-CIBC charges $6.95, so my minimum stock value purchase is always $5000
-Wealthsimple Trade I buy whenever as well (but this is fun money to try it out so I don't strategize)
-Questrade is ETF only for who I manage

If you are adamant on staying with TD, you need to change how you invest. I would recommend going TD e-Series is you really want to buy $500 at a time. If you want to stick with stocks, save up at least a few thousand. At $10 a trade, you are giving up 2-4% of your initial investment (2% to buy and possibly another 2% to sell).

If you want to stick to $500 and stocks, go with the many free/cheaper options above. Wealthsimple Trade would be ideal, just keep in mind, not all stocks listed are tradable.

TD is not competitive for individual stocks for small players.
Is there any reason to use TD at all?
Jr. Member
Nov 17, 2016
165 posts
112 upvotes
vivibaby wrote: Is there any reason to use TD at all?
It has the best platform and best customer service. I have accounts with all the banks and a brokerage with TD and BMO. TD uses by far the best technology.
Deal Addict
Mar 10, 2010
1410 posts
385 upvotes
xgbsSS wrote: If you are adamant on staying with TD, you need to change how you invest. I would recommend going TD e-Series is you really want to buy $500 at a time. If you want to stick with stocks, save up at least a few thousand. At $10 a trade, you are giving up 2-4% of your initial investment (2% to buy and possibly another 2% to sell).

If you want to stick to $500 and stocks, go with the many free/cheaper options above. Wealthsimple Trade would be ideal, just keep in mind, not all stocks listed are tradable.

TD is not competitive for individual stocks for small players.
This is great advice if you need to stick with TD. The e-series will mirror the returns of most broadly diversified ETF's. Simply build the e-series until you're up to several thousand then transfer into ETF's/stocks.
Sr. Member
Jun 2, 2017
618 posts
284 upvotes
Clacker wrote: This is great advice if you need to stick with TD. The e-series will mirror the returns of most broadly diversified ETF's. Simply build the e-series until you're up to several thousand then transfer into ETF's/stocks.
Agreed

Only use TD for eseries/index funds/mawer

Stocks and Etfs go elsewhere. Questrade/Wealth simple.
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May 11, 2014
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vivibaby wrote: Is there any reason to use TD at all?
No. Most people I see that use TD or any bank brokerage only go with them because they bank there.
TD other than having e-Series is really not competitive for everyday investors. And as TD e-Series is now available at other brokerages, there really isn't a reason to stick with them. The only time I would probably stick with them is if one is to stick solely with TD e-Series. As an active trader, there are better, low cost programs with as good layouts, data and research.

But people express things such as convenience or even safety (I think it's a ludicrous argument imho) to stick with large bank brokerages. Whether one wants to pay that much more in commission for that, is up to one to decide.
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Deal Addict
Mar 10, 2010
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xgbsSS wrote: And as TD e-Series is now available at other brokerages, there really isn't a reason to stick with them. The only time I would probably stick with them is if one is to stick solely with TD e-Series.
Is it free to buy and sell e-series from other platforms? In Questrade there's a $9.95 fee to trade mutual funds.
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Clacker wrote: Is it free to buy and sell e-series from other platforms? In Questrade there's a $9.95 fee to trade mutual funds.
Yes. Many brokerages have free mutual funds purchases.
Example: CIBC is free, except they have a separate minimum purchase
I can also confirm e-Series is available with CIBC IE
https://www.investorsedge.cibc.com/en/pricing.html#

Virtual Brokers is free (in addition to ETF buys)
https://www.virtualbrokers.com/commissi ... structures

When choosing a brokerage, it is important to consider what you want to invest in. You can always transfer to another one later on or keep accounts at two or more to even out and take advantage of the commissions most appropriate for your investments.
Here is an article about the relatively recent changes with e-Series and availability at other brokerages.
https://www.moneysense.ca/columns/ask-a ... ies-funds/
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Mar 10, 2010
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xgbsSS wrote: Yes. Many brokerages have free mutual funds purchases.
Example: CIBC is free, except they have a separate minimum purchase
After checking both VB and CIBC IE I see you are correct, no fees, but the minimum purchase amounts for both is $1000 which is not good if you're looking at monthly or bi-weekly contributions (and definitely wouldn't work for the OP). Thanks for the info.
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May 11, 2014
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Clacker wrote:
After checking both VB and CIBC IE I see you are correct, no fees, but the minimum purchase amounts for both is $1000 which is not good if you're looking at monthly or bi-weekly contributions (and definitely wouldn't work for the OP). Thanks for the info.
For sure. One has to look at these minimums as well. To me though, especially VB which now has free ETFs, that minimum in itself isn't a huge barrier and for some people, that is easy enough to do.

If one really wants to have TD e-Series, they could just buy the underlying TD ETFs too. Probably low volume though so one should probably limit bid lower than ask and be patient.
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[OP]
Newbie
Feb 7, 2019
82 posts
31 upvotes
By the way, I hear from an American friend that RobinHood is good. Is this available in Canada?
Deal Fanatic
Feb 4, 2015
6428 posts
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Canada, Eh!!
xgbsSS wrote: Unless you are an active trader, no. Your only options really are...

Move to a cheaper brokerage.
-Wealthsimple Trade is free
-VB starts at $1.99, IB is similar and 1 cent
-CIBC, Desjardins, start at $6.95
-Qtrade is $8.45
-Scotia iShares, NBC, Questrade, Qtrade for free ETF purchases

Buy mutual funds
-with the amounts you are investing at a time, unless you move brokerages, it isn't worth buying individual stocks

Save up before buying stock
-i use Virtual Brokers, CIBC and Wealthsimple Trade and manage accounts in Questrade for some people
and the trades I perform at each are done according to their commission
-VB I have graduated a 1 cent per share so I buy freely when I want
-CIBC charges $6.95, so my minimum stock value purchase is always $5000
-Wealthsimple Trade I buy whenever as well (but this is fun money to try it out so I don't strategize)
-Questrade is ETF only for who I manage

If you are adamant on staying with TD, you need to change how you invest. I would recommend going TD e-Series is you really want to buy $500 at a time. If you want to stick with stocks, save up at least a few thousand. At $10 a trade, you are giving up 2-4% of your initial investment (2% to buy and possibly another 2% to sell).

If you want to stick to $500 and stocks, go with the many free/cheaper options above. Wealthsimple Trade would be ideal, just keep in mind, not all stocks listed are tradable.

TD is not competitive for individual stocks for small players.
Presently using RBC and CIBC.

Want to move funds to another brokerage [most likely from CIBC as have other banking with RBC].

This would be for individual stocks [CAD and USD], options, few ETFs.

VB looks interesting however they charge for some accounts. Did I read wrong and there are ways to avoid these admin fees depending on balance, etc.?

16 US RRSP, US Spousal RRSP & US LIRA US $15 per quarter

18 US TFSA US $15 per quarter
19 RESP $25 per year
20 US RESP US $15 per quarter

Guess other option is to leave registered accounts with banks and just open non registered accounts with VB?

How is their customer service?

Was considering Questrade or Q trade as well as heard [or at least few years ago] that Q trade has great customer service; not sure if that is still valid.

Not interested in IB and Wealthsimple.

Thanks.
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Sr. Member
Mar 6, 2010
509 posts
166 upvotes
Brampton
OP - You can negotiate a lower rate of 6.95 with TD if you trade a lot. 150/quarter or close to that.
Sr. Member
Aug 16, 2015
782 posts
282 upvotes
Jyelong wrote: I usually buy small amounts of stock (500-600$) and the 9.99$ TD charges for each transaction eats up a lot of the appreciation I try to get from the trade.
Is there a way I can avoid these fees? Does TD offer options that do not include this fee? Or are there other brokers that do not charge a fee when you buy/sell stock?
Im loving questrade. 9.99 is ridiculous. I'm moving away from CIBC because even the 6.95 they charge is way too much.
Sr. Member
Jan 6, 2015
992 posts
296 upvotes
Jyelong wrote: By the way, I hear from an American friend that RobinHood is good. Is this available in Canada?
I think that is no. Disappointed But Relieved Face
Member
Feb 8, 2015
461 posts
479 upvotes
Kanata
xgbsSS wrote: No. Most people I see that use TD or any bank brokerage only go with them because they bank there.
TD other than having e-Series is really not competitive for everyday investors. And as TD e-Series is now available at other brokerages, there really isn't a reason to stick with them. The only time I would probably stick with them is if one is to stick solely with TD e-Series. As an active trader, there are better, low cost programs with as good layouts, data and research.

But people express things such as convenience or even safety (I think it's a ludicrous argument imho) to stick with large bank brokerages. Whether one wants to pay that much more in commission for that, is up to one to decide.
The main benefit is that if there is a house deal or auto deal and you need that money immediately, you can move $20,000 (or even $200,000) from your margin account into your TD Checking account and within the same second head over to a local branch and have them write a certified check for you.
I have once went to a TD Branch. While waiting in line, transferred $6,000 from my margin account to my checking account, and then went up to the cash and got them to write a certified check.

OR if for some reason you need to pay someone money, you can instantaneously withdraw money from your margin account to your TD account and send them an e-transfer.

Thus, there is absolutely no need to keep a float. My float is essentially my brokerage.


Thus I see a benefit for keeping all your investments under 1 brokerage. If for some reason you need money and it is time sensitive, you don't need to wait business days for transfers to clear from your 5 different banks.
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May 11, 2014
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garmium wrote:
The main benefit is that if there is a house deal or auto deal and you need that money immediately, you can move $20,000 (or even $200,000) from your margin account into your TD Checking account and within the same second head over to a local branch and have them write a certified check for you.
I have once went to a TD Branch. While waiting in line, transferred $6,000 from my margin account to my checking account, and then went up to the cash and got them to write a certified check.

OR if for some reason you need to pay someone money, you can instantaneously withdraw money from your margin account to your TD account and send them an e-transfer.

Thus, there is absolutely no need to keep a float. My float is essentially my brokerage.


Thus I see a benefit for keeping all your investments under 1 brokerage. If for some reason you need money and it is time sensitive, you don't need to wait business days for transfers to clear from your 5 different banks.
I can wire the funds from my brokerage and get the funds same day should that need arise. It costs $50. Yes it's a fee, but I've saved hundreds of dollars in lower commissions.
The likelihood and need for having what you describe is low and can be mitigated in other ways. Not worth paying hundreds of dollars of commission extra imo.

Besides, if I were planning to buy a home etc. I would probably have those funds in an HISA ready for that purpose.
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Sr. Member
Feb 4, 2017
828 posts
616 upvotes
Toronto
StevePos wrote: It has the best platform and best customer service. I have accounts with all the banks and a brokerage with TD and BMO. TD uses by far the best technology.
+1 to this. I have tried out the platforms on all 6 banks and had accounts with BMO, RBC, and Questrade in the past. TD surpasses them all in customer service and platform. If OP wants to save money, go with Wealthsimple, it's very barebones however. You get what you pay for.
Sr. Member
Aug 16, 2015
782 posts
282 upvotes
CheapMang wrote: +1 to this. I have tried out the platforms on all 6 banks and had accounts with BMO, RBC, and Questrade in the past. TD surpasses them all in customer service and platform. If OP wants to save money, go with Wealthsimple, it's very barebones however. You get what you pay for.
not really. questrade platform is good and it's also cheap if you only trade etfs.

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