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Discussion Starter · #1 ·
I am looking into opening a discount broker account, I have been doing some research on investing but am fairy new and uneducated in this. I currently have my RRSP and TFSA in mutual fund portfolio through a broker where I am suppose to be getting a "deal" of - 1% on fees through my union, I currently i pay 1.49% for fees. From what i researched i can open a discount broker account and invest in ETF's portfolio and minimize these fees to like 0.4% or less meaning another 1% + savings which sounds great. My only problem is my ignorance towards investing, I would like a broker that could give me some advice as need and I would like be able to invest my money with minimal trading and moving around. Any suggestions on the right discount broker for me and EFT's are the best choice or if I am on the right track and should just stay with my mutual funds. Any information, education would be much appreciated.
 

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I don't think any discount broker will give you advice, that's what makes them discount. The only advice they will give is technical as in how to enter an order in their system, but they won't suggest what investments you should get.

If you do a couch potato portfolio in a discount broker you won't need to trade/move around much. But you won't get advice either - you'll be on your own.
http://canadiancouchpotato.com/model-portfolios-2/
 

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Discussion Starter · #3 ·
Thank you spud. From what I have researched basically for me to build a portfolio with low MER and good returns to outperform mutual funds with high fee I would have to build a portfolio with 4-6 well diversified etf's in Canadian, US, international equity and bonds. I believe with some research this could be accomplished fairly easy but I am unsure of how much time id have to spend researching and how often i would have to re balance to be effective at this
 

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You don't mention how big the total $$$ are.

If the $$$ are big enough, there will be no concern about inactivity fees or paying larger commissions to sell (or possibly buy) the ETFs. If not, it may make more sense to look at something like the eSeries MF account through the bank instead of the broker that does not have any fees.

eSeries MERs are something like 0.33% with as little as a 30 day hold to avoid early redemption charges.


Cheers


PS

To get an idea for fees & charges, you might want to check out the following article.
http://www.milliondollarjourney.com/review-canadian-discount-brokerages.htm
 

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I don't think any discount broker will give you advice, that's what makes them discount. The only advice they will give is technical as in how to enter an order in their system, but they won't suggest what investments you should get.

If you do a couch potato portfolio in a discount broker you won't need to trade/move around much. But you won't get advice either - you'll be on your own.
http://canadiancouchpotato.com/model-portfolios-2/
There is a wealth of information on Canadian Couch Potato as mentioned, as well as Finiki at www.finiki.org. A solid portfolio can be built with as little as 2-3 ETFs, albeit one still has to decide what goes into the TFSA vs RRSP. There is no discount broker out there that provides investment advice at zero cost. The closest one can come to that are the robo-advisors like WealthSimple or BMO's Advice Direct, Tangerine's system, etc, etc. Their fees may still be in the 1% range.

Whatever the case, the traditional actively managed mutual fund have obscene MERs. If one does not want to venture into stock market ETFs, as already mentioned, there are the TD series of e-funds that one can manage on their own.
 

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Discussion Starter · #6 ·
As of right now I have aprox 55 000 in my rrsp and 48 000 in my TFSA I also have other money in tangerine savings account for my mortgage down payment. which I have been contemplating on using to top up my RRSP contribution room for the year and using the tax return from that to reinvest back into my mortgage saving
 

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Which reminds me ... the OP in post #1 mentions " ... through a broker where I am suppose to be getting a "deal" of - 1% on fees through my union ... '.

As a union is involved (just like if it is an employer sponsored plan) - a key question is whether this is an optional plan or one that has restrictions on moving the $$$ to another financial institution.

Best case is transfers to another financial institution (discount broker or otherwise) have few restrictions. Worst case is where a transfer is not allowed.


Cheers


PS

With the round numbers mentioned in post #6, there is enough so that one at most discount brokers one would qualify for lower commission fees as well as waive inactivity fees and/or account yearly fees.

One should read the fee/commission schedule closely to be clear. I know from a few posts here on CMF, some were surprised at the RRSP withdrawal fees and TFSA transfer fees (though a late year withdrawal usually gets around the TFSA transfer fee).
 
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