[mokosu]

Good day

I am looking for recommendation's for Discount Brokers and a High Interest Savings account?

I am looing to move my stocks from the Transfer Agent to one location.


Thanks

 

[AltaRed]

Virtually all major discount brokerages have an HISA offering at approximately the same rates. Pick the brokerage for its brokerage offerings.

 

[l1quidfinance]

You do need to consider the transaction costs depending on the brokerage so it depends how long you hold the cash but PSA (Purpose High Interest saving) etf is worth consideration.

Currently Yielding 2.15% based on the last distribution.

 

[gibor365]

You do need to consider the transaction costs depending on the brokerage so it depends how long you hold the cash but PSA (Purpose High Interest saving) etf is worth consideration.

Currently Yielding 2.15% based on the last distribution.

PSA distributions are vary a lot from month to month. During last year distributions were from 0.052 to 0.917 , as per TMX.com current yield is 1.724 . Also you have to pay trading fees to buy/sell. I wouldn't touch it.

 

[l1quidfinance]

That's the trailing yield and the distributions vary as would the interest rate on a typical HISA account. I also commented that transaction costs are to be considered. Should you choose Questrade then you will only pay to sell. Or IB only $1 to buy and $1 to sell.

So, should the investor want to park $5000 (100 shares) with Questrade for a short time trading cost will account for 0.1% Pretty irrelevent. The round trip with IB is only going to cost the investor 0.04% The worst case trailing yield with Questrade is 1.714 or 1.72 with IB.

Yes you have to use it wisely. Trading in and out with small sums could become costly but parking a bigger sum, such as the $5000 example, whilst waiting for the next opportunity could be well worth consideration.

 

[humble_pie]

You do need to consider the transaction costs depending on the brokerage so it depends how long you hold the cash but PSA (Purpose High Interest saving) etf is worth consideration.

Currently Yielding 2.15% based on the last distribution.

liquid is it true that IB allows clients to buy PSA (& thereore to sell it, of course)

as you know, both TD & RY block clients from buying PSA. Other brokers have milder restrictions, ie some will require that a client first buy $100k of their house fund, etc.

re the difference between current yield & trailing yield, this is actually an important distinction right now. Trailing yields usually take distributions throughout the entire past year into consideration, therefore tend to be lower nowadays because interests rates have recently risen (are plateauing right now, possibly even dropping slightly)

whereas current yields focus on distributions during very recent period such as past 3 months, therefore are higher at the present time. Current yield is what a HISA seeker needs to consider, since all these funds are extremely liquid & investor can move from vehicle to vehicle fairly easily.

most brokers are displaying both current & trailing yields, depending on which portal the client uses. The 2 yields are not posted together, only one is shown at a time, so unenlightened/novice investor cannot really tell if the figure he is seeing (1.72% trailing for example) is hopelessly out-of-date or not.

broker reps seem to be a bit clueless about these 2 yields as well, so the situation leaves only internet forums such as this one to spread the word. Forewarned is forearmed! aggressive HISA funds are presently paying 2% or better on current basis. Captive house funds are presently paying north of 1.50% on current. Some investors, for example those working registered accounts, cannot move their cash out to seek better rates elsewhere, so they have to accept the house offering. For other investors with small amounts of cash, it's not worth the trouble to move cash around in search of a slightly higher yield.

larger amounts of non-registered cash, say north of $100k, are worth moving around though

.

 

[StephenShort]

can someone explain to me what a discount broker is?

 

[Beaver101]

can someone explain to me what a discount broker is?

... from Investopedia (explanation would be better than mine's for sure):

What is a Discount Broker?

What Is a Discount Broker?

A discount broker is a stockbroker who carries out buy and sell orders at a reduced commission rate. However, a discount broker does not provide investment advice or perform analysis on a client's behalf, unlike a full-service broker. Before the emergence of better communications technology, only the wealthy could afford a broker and access to the stock market.