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Tuesday, December 21, 2010

Margin made complicated at TD Waterhouse

Just before getting started on my debt situation, I would like to say that I am now very close to the 200$ in online earnings. But just now when I start making good money, my 2 latest HubPages got refused. they are both now unpublished as I got to review them. Its quite dramatic because both of them were absolutely perfect, all back of the best keywords Google AdSense program of all time! It's not a funny situation at all, but I find it hilarious because both of those 2 HubPages had been boring to write so I guess it reflect in the overall product, and in result I got ban... I had been working hard on HubPages lately because I want to reach the 100 HubPages before the end of 2010... I had been working and working, but maybe i had been trying to hard. And to tell the true, all of that writing had exhausted me! Just very much funny situation I have to say. I just hope I will be able to reach my 100 HubPages by the end of 2010! I just have a couple of days left and I have to write 24 HubPages articles... But I like the challenge.

Enbridge Income Fund (ENF.UN) dividend are in!

Yes! I call TD Waterhouse again tonight because I had notice I had received something in the cash account... I was told I had received 37.57$ from Enbridge Income Fund (ENF.UN). I just take note of the amount but this amount of 37.57$ is very strange because I usually received around 30$ every month from Enbridge Income Fund (ENF.UN). Anyhow, this situation will be fix, I won't have to call TD Waterhouse and ask them what I had received as dividend very soon. In the next distribution period, everything should be back in order. Which should be for the next month or 2.

I place a test trade to see how it will appear next time I will actually be trading... nothing very strange appears lol... just the cash amount (which is a debit because I start using the margin money) and the amount left on the margin account. But the commission fee that appear was 29$, an not 9.99$. So now I am confuse again. See I am suppose to have the commission fee at 9.99$ per trade because I have more than 50 000$ in my broker account (I actually now have close to 100 000$ alone there right now, before margin of course...). Now, I am wondering if the 29$ commission fee came out because I did the test when the market was closed or if it's going to be my commission fee from now on. Hello complications!

This is just to give you a quick overview of what I am going through since I add margin to my broker account. I am now more miserable than ever before, but I can now borrow money from TD Waterhouse at the cool interest rate of not 4.52% like I was previously wrote, but 4.25%! That's the rate that is advertise on the TD Waterhouse Web site. But I taught I saw 4.52% somewhere before and its the rate I once was giving by a TD Waterhouse representative... 4.25% is better than 4.50% or 4.52% for sure... so I am willing to take the 4.25%... lol... But hey, that's not all.

With a President's Account at TD Waterhouse, the margin is at 3.75% with only $25,000 - $99,999 in investment. I am very curious about the President's Account of TD Waterhouse. I forget to ask what it take to get a President's Account. Just very curious because if we are talking about an investment value of $25, 000 and $99 999 than, the minimum needed appear to be low. Anyhow, the President's Account of TD Waterhouse is something really mysterious and I cannot find anything online regarding the President's Account.

President's Account at TD Waterhouse or not, a 4.25% in interest money is quite good. Remember that I use to pay 8.75% in interest on a 5 000$ line of credit at TD Canada Trust... Now that line of credit had been paid off using my 4.25% margin money.

I also ask the rep of TD Waterhouse about the interest. When the interest are being add to the margin? That's important stuff to know for me because I want to pay off the interest money every month. holding a margin on a broker account is not like a line of credit: you won't received a monthly statement or anything like that requesting a minimum payment. with margin: its a good or no good situation. In my case, I prefer to keep it simple and not use more than 30% of the margin money available. It's impossible for me to follow the market second after second during daytime. Most of the time while working, I will take a quick look at the market a couple of times during the day, but I cannot closely monitor the stock market. Meaning that during daytime, in case of a sudden crash, I won't probably know anything about it. At least not immediately.

When it come to the interest own on my margin, I already deposit a 149.50$ in my margin account (my Quebec provincial tax cheque). This way, I am good for a couple of months. Instead of doing things simply, TD Waterhouse had decided to go complicated when it come to margin interest money. I ask the rep the following question; when does the interest money is getting deposit in the account? And I got the following answer: on the first Friday following the 16th of each month. WOW! That's so complicated as answer. Messy... But wait, that's not all! If the 16th arrived on a Thursday or Friday, the interest money will be deposit on the following Friday... Oh lala TD Waterhouse I love u! Just to keep it simple between you and me, we'll say that the interest money will arrive sometime during the month, certainly after the 16th of each month... LOL...

TD Waterhouse + margin = awful things. I wasn't explain anything when I open the margin account at the TD Waterhouse location at the Eaton Centre. But I wasn't expecting much more better coming from Quebeckers.


Anonymous said...

$500,000 in assets will get you a presidents account. If you borrow $100k+ on margin you'll get 3% interest rate.


Anonymous said...

TD Waterhouse people really need better staff working there. they do the opposite of what you want. Ask then to take you off the drip and the put you on instead!

Sunny said...

Hi there,

True, I have experiment some problem with TD Waterhouse, I mostly experience those problems at their office located at the Eaton Centre in Montreal.

I set up a DRIP, but when the margin account was installed, the DRIP stop. The reason behind is that since my account transformed from a regular cash account to a margin account, it basically reset everything. I explain to TD that I always had the DRIP and that I wasn't informed that the margin account will reset everything. How could had I known that anyway? They are the one supposed to be the broker specialist, not me. But trust me, some people working at TD Waterhouse don't know much. TD should put their best people, best experimented people in their TD Waterhouse office, not some unprofessional newbies who probably never trade on their platform.

However, following the incident, TD fix the DRIP, buy stocks commission free to make DRIP what should had DRIP but did not and also, they gave me a 50$ credit, which I spend very quickly on trades. Nice of them, but still, it wasn't the end of my misery.

I went to TD Waterhouse Eaton Centre office to have money transfer from what I had in RRSP money at TD Canada Trust, and I wanted the money to get transferred at TD Waterhouse. I had done that before, so I exactly new what was required: I needed to complete a form.

So I went at TD Waterhouse Eaton Centre in Montreal, explaining what I wanted, and than the poor woman gave me a number, saying I had to call. The number was the 514 local number for TD Waterhouse. I call the number, but was told, like I expect it, to complete a form. So I went back to the poor girl, saying I needed to complete a form.... IT TOOK ME AN HOUR TO HAVE THIS DONE.

Remember: TD Waterhouse is like any other financial institution. If you can get a better commission fee someplace else, like CIBC for example, well, flush TD. Because they don't give a damn.

The girl for the RRSP thing was extremely rude and incompetent. I share, she probably never trade before on TD and she's probably not an investor.

TD Waterhouse Quebec staff = JERKS!!!!

But that's not all... This year, my RRSP fee for my TD Waterhouse RRSP account had been taking from the RRSP when I had requested the money to be taken from my non registered account. But the money had been taken from my RRSP because at the time my non registered account change from regular to a margin account, it had also reset that part... So in result, I was credited the management fee, which was something around 150$ or something like that. So in total, TD Waterhouse incompetent Montreal mistake errors cost TD around 300$. Might not seem like that huge, but do a 300$ X number of customers who had to deal with the jerks, it make a lot of money.

But there's not just a bad side of TD Waterhouse. Fact is, TD never took long to correct their mistakes and I never had to argue very long to get my money.

TD Waterhouse resolution never took long, they are not slow at taking action.

Also, they have a good email service. You can write them and they answered very quickly. Once, I got a surprise email from TD Waterhouse following what I had wrote about them regarding my margin account. It's not like they are closing their eyes when there's problem. And that's a big +. Because you don't get the same kind of service from InvestorLine of BMO Bank of Montreal.

Sunny said...

Also, TD Waterhouse customer service is open 24 hours - there's no other broker in Canada, from what I had saw so far who offer a 24 hours service. It can very make a different because if you have a question, you can call after hours and call, no waiting time.

TD Waterhouse platform is easy to use. Very quick trading time, very reliable. I never had any problem using their platform, my order go through and if I set a limit, the limit is respected and the order to through as soon as the limit price enter is reach.

So very good overall, but I am still a bit angry at them as you can read the flush thing but I won't flush TD because they had been responsible to correct what needed to correct and they also sell my DRIP of Yellow Page left over for free so I am ready to forgive but I am still a bit upset.


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