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Transferring funds from Questrade TFSA to IB TFSA?

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  • Aug 25th, 2021 2:39 pm
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Transferring funds from Questrade TFSA to IB TFSA?

Hi,

Noob question, I plan to open another TFSA with Interactive Brokers and would like to transfer some of my funds over directly from my current Questrade TFSA account. This should be fairly simple to do and won't count as any deduction from my contribution limit of my TFSA, correct?
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Correct. Transfers don't affect your contribution space either way. The $25 fee on Questrade side for a partial transfer out is low in comparison with most brokers. It's not that hard to justify, as it saves the TFSA space and/or avoids commissions for selling/rebuying securities, if you transfer any. Transfers to IB are self-serve online.
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yvrbanker wrote: Correct. Transfers don't affect your contribution space either way. The $25 fee on Questrade side for a partial transfer out is low in comparison with most brokers. It's not that hard to justify, as it saves the TFSA space and/or avoids commissions for selling/rebuying securities, if you transfer any. Transfers to IB are self-serve online.
Thank you. :)
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Jun 28, 2018
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Note you need the full 10 digit Questrade TFSA account number. Standard format shown such as on Statements is the 8 digit account. I think if you check deeper on the Statement or Trade Confirmations you will find the 8 + 2 digit account.

I am waiting for full transfer over of my TFSA to IBKR from Questrade to be completed.
The Distracted Investor

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May 5, 2016
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Ive been trying to transfer some of my cash from TD TFSA to IBKR TFSA, the TD people told me it will take up two three weeks. It made me feel like i should have just closed my TD account with such shitty service, 3 weeks to transfer cash is a joke. Its not like i was even closing my account, only transferring the cash balance.
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azorahai wrote: Ive been trying to transfer some of my cash from TD TFSA to IBKR TFSA, the TD people told me it will take up two three weeks.

TD are wrong people to ask in this scenario. Transfers are initiated on the receiving side. The system is automated (ATON transfers), there should be no manual involvement from TD. They could help with the forms perhaps, but that means extra manual processing time before the automated transfer is started.

Even an automated transfer can take up to 10 business days, per standard. Slower if there are mistakes. Cash should be more straightforward. Mistakes can come from trading activity during transfer, or maybe dual listed stocks.

TD would charge you $150 for a transfer out, partial or full. Only worthwhile if you move a decent amount.
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azorahai wrote: Ive been trying to transfer some of my cash from TD TFSA to IBKR TFSA, the TD people told me it will take up two three weeks. It made me feel like i should have just closed my TD account with such shitty service, 3 weeks to transfer cash is a joke. Its not like i was even closing my account, only transferring the cash balance.
If you have the contribution room for 2021 then yea, could have withdrawn and re-contributed to IBKR TFSA.

The transfer isn't just an EFT, as noted it's an ATON transfer. Different method.

I see my Questrade TFSA account has closed. Exciting. Not sure at what stage where my holdings are now, but waiting on IBKR to post them any day now.
The Distracted Investor

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Leshita wrote: Hi,

Noob question, I plan to open another TFSA with Interactive Brokers and would like to transfer some of my funds over directly from my current Questrade TFSA account. This should be fairly simple to do and won't count as any deduction from my contribution limit of my TFSA, correct?
why? because IB is better than Questtrade?
If I want to transfer my TFSA from bank of Montreal to IB? anyone knows?
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May 5, 2016
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yvrbanker wrote: TD are wrong people to ask in this scenario. Transfers are initiated on the receiving side. The system is automated (ATON transfers), there should be no manual involvement from TD. They could help with the forms perhaps, but that means extra manual processing time before the automated transfer is started.

Even an automated transfer can take up to 10 business days, per standard. Slower if there are mistakes. Cash should be more straightforward. Mistakes can come from trading activity during transfer, or maybe dual listed stocks.

TD would charge you $150 for a transfer out, partial or full. Only worthwhile if you move a decent amount.
Its a little more than 50k and it was a cash only transfer, so i don't understand why its taking so long. I guess its fair enough but i just thought a cash transfer would be fast.
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johnnychi wrote: If you have the contribution room for 2021 then yea, could have withdrawn and re-contributed to IBKR TFSA.

The transfer isn't just an EFT, as noted it's an ATON transfer. Different method.

I see my Questrade TFSA account has closed. Exciting. Not sure at what stage where my holdings are now, but waiting on IBKR to post them any day now.
Yeah i don't have room, infact i need to withdraw and deposit again to "harvest" my TFSA gains but can only do that at the end of the year.
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1000islands wrote: why? because IB is better than Questtrade?
If I want to transfer my TFSA from bank of Montreal to IB? anyone knows?
You gotta initiate the transfer on IBKR side, they have a form online you fill out, its pretty straightforward.
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Didn’t want to start another thread, but we should be able to buy in HKD on the Hong Kong Stock Exchange via IB, correct?

This was one of the reasons why I wanted to use IB. Second was that I heard there is no longer any inactive fee or minimum monthly fee charge now.
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azorahai wrote: Yeah i don't have room, infact i need to withdraw and deposit again to "harvest" my TFSA gains but can only do that at the end of the year.
What is the purpose of this manœuvre?
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Leshita wrote: Didn’t want to start another thread, but we should be able to buy in HKD on the Hong Kong Stock Exchange via IB, correct?

This was one of the reasons why I wanted to use IB. Second was that I heard there is no longer any inactive fee or minimum monthly fee charge now.

The videos might be a little out of date, but I just clicked around the web portal and found it. For phone app, I think it is the same. Go to the currency holding summary at the bottom and press the currency. It will bring up a menu asking how much to convert. They pair HKDUSD, so if you don't have USD you need to convert CAD to USD first then USD to HKD. Which reminds me I might as well convert some USD to HKD. 345 keeps dropping.

https://www.interactivebrokers.com/en/index.php?f=47638

Edit: just converted USD to HKD via iphone app. Pretty easy.
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johnnychi wrote: The videos might be a little out of date, but I just clicked around the web portal and found it. For phone app, I think it is the same. Go to the currency holding summary at the bottom and press the currency. It will bring up a menu asking how much to convert. They pair HKDUSD, so if you don't have USD you need to convert CAD to USD first then USD to HKD. Which reminds me I might as well convert some USD to HKD. 345 keeps dropping.

https://www.interactivebrokers.com/en/index.php?f=47638

Edit: just converted USD to HKD via iphone app. Pretty easy.
Thank you, by the way, did you do that within your TFSA?
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Leshita wrote: Thank you, by the way, did you do that within your TFSA?
That wouldn't work. Only CAD and USD cash is allowed in IB TFSA or RRSP.
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yvrbanker wrote: That wouldn't work. Only CAD and USD cash is allowed in IB TFSA or RRSP.
Oh, in that case, I should just open a new standard account then if I do open one.
Thanks. :)
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azorahai wrote: Lets say you deposit the maximum allowable contribution 75k to an investment account. And lets say you get super lucky with your investments and grow it to 150k. Your new contribution limit is not 150K, if you get unlucky and lose all your gains, your contribution room will still be the original 75K. On the other, when you grow your account to 150K, you withdraw 75K(yourr gains) and deposit it back again next year, your contribution room grows to 150K. So even if you lose your capital gains, your contribution room will continue to be 150K. Obviously people can abuse this maneuver, and if you didn't place any restrictions on it people can grow their contribution rooms infinitely. No one would ever pay capital gains tax and taxes on dividends. That's why the CRA adds your withdrawals to your contribution room but restricts you from using that until the following calender year.
You don’t seem to understand how TFSA contribution room works. When you deposit 75.5k, your contribution room is now 0. If you double your TFSA to 151k and you withdraw half(75.5k), your contribution room is now 75.5k. On Jan 1 of the following year your contribution room is 75.5k + the new yearly contribution room(currently 6k). Once you contribute 81.5k your contribution room is now 0 once again until next year.

Withdrawing and recontributing does absolutely nothing other than reduce your tax sheltered space until your recontribution. It is an exercise in futility.
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Leshita wrote: Thank you, by the way, did you do that within your TFSA?
I did it in my non-reg. I can click through to the currency conversion in my TFSA account.

Yes, you can hold foreign currency/stocks within designated stock exchanges (https://www.canada.ca/en/department-fin ... anges.html). The issues that I can think of however is:
  1. CAD deposit, then convert into the foreign currency (USD, HKD, etc).
  2. No tax treaties for treatment of dividends means any dividends may be subject to a foreign withholding tax. The investment capital gains on sale should be fine though.
https://www.canada.ca/en/revenue-agency ... 3021_26419
The Distracted Investor

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johnnychi wrote: I did it in my non-reg. I can click through to the currency conversion in my TFSA account.

Yes, you can hold foreign currency/stocks within designated stock exchanges (https://www.canada.ca/en/department-fin ... anges.html). The issues that I can think of however is:
  1. CAD deposit, then convert into the foreign currency (USD, HKD, etc).
  2. No tax treaties for treatment of dividends means any dividends may be subject to a foreign withholding tax. The investment capital gains on sale should be fine though.
https://www.canada.ca/en/revenue-agency ... 3021_26419
Oh, so I can hold HKD and buy from the HK exchange in my TFSA?
Thank you.
Now I am a bit confused because yvrbanker said otherwise. lol


By the way, I recall the IB application process being slightly complicated compared to Questrade.
Last time I was faced with some do you reside in a country with a tax treaty with the United States or something in my application and I just gave up.
Do you recall if you just selected Canada as the country with a tax treaty for that particular portion of the application or just left it blank?

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