At TD that's not the case. But I guess it depends on the broker.
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no, not at all.
just as there are so many new investors crowding into discount brokerland these days, there are also so many neophyte licensed representatives crowding into the broker call centres.
my sympathy goes to the novice licensed reps - the traderlets - because the amount of knowledge they are supposed to have is staggering, overwhelming, no person could master all of it. In addition they are under intense pressure from da bosses to process every call as fast as possible.
the result is that they try their best but sometimes they have to make up nonsense, just to get rid of a difficult question & move on to something easier.
what you're reciting is some kind of in-house questrade mythology. Other big brokers - established, well-respected brokers with volume business much greater than questrade - are honouring RRSP gambit trades in the instant manner that i outlined upthread.
to repeat, TDDI, BMO, roybank, scotia iTrade & apparently CIBC - says gibor - are all executing instant gambits in RRSP with absolutely no problems.
you could argue this out with a questrade manager if you had the time & motivation. It may very well be the case that their compliance department has taken this draconian view because they just absolutely do not want to court any trouble; as an outside observer i'd be sympathetic to that.
what i hear directly from questrade trading reps is that, in the past, they kindly performed instant journals upon request as a courtesy gesture to clients. But then the requests became too numerous to handle. Moreover the clients were using the DLRs to gambit, so therefore the maximum revenue the poor broker could earn from a gambit round trip was the teeny $4.95 commission from the sell side (krey are you one of these $4.95 gambit clients using the DLRs? pshaw ... i have no sympathy for you
each:what then happened is that questrade decided upon a ironclad delay strategy. Yes they'll journal gambit carrier stocks, but they will no longer accept individual custom orders to journal instantly. Instead they'll journal on a slower basis, possibly batching all gambit journal orders overnight, etc.
i for one am sympathetic to this. It's a bit outrageous for a junior $4.95 commission client to demand an instant gambit journal, which means that a busy trading representative has to stop all other orders, possibly boot up an alternative system, etc ... for zero money? c'mon
that's why i suggested that offering the full agent-handled commission for the sell side might possibly work. However questrade seems to have elaborated an in-house mythology that the minister of finance prohibits gambit trading in RRSP :biggrin: so i'd say that the outlook for instant gambit trades is not looking real good chez this broker.
Thanks humble_pie. I called them twice today. The first time I wanted to use TD/TD.TO to perform the gambit and they told me it would take 24 hours even if I paid a full trade desk commission (this is even before I mentioned that it was for an RSP). Because I don't want to hold TD for 24+ hours while performing the gambit, I decided to use DLR. I called them and then they told me again that it would take 24 hours for the switch, but that I would need to wait 3 additional days for the settlement in a RSP prior to that, with no way around it...no, not at all.
just as there are so many new investors crowding into discount brokerland these days, there are also so many neophyte licensed representatives crowding into the broker call centres.
my sympathy goes to the novice licensed reps - the traderlets - because the amount of knowledge they are supposed to have is staggering, overwhelming, no person could master all of it. In addition they are under intense pressure from da bosses to process every call as fast as possible.
the result is that they try their best but sometimes they have to make up nonsense, just to get rid of a difficult question & move on to something easier.
what you're reciting is some kind of in-house questrade mythology. Other big brokers - established, well-respected brokers with volume business much greater than questrade - are honouring RRSP gambit trades in the instant manner that i outlined upthread.
to repeat, TDDI, BMO, roybank, scotia iTrade & apparently CIBC - says gibor - are all executing instant gambits in RRSP with absolutely no problems.
you could argue this out with a questrade manager if you had the time & motivation. It may very well be the case that their compliance department has taken this draconian view because they just absolutely do not want to court any trouble; as an outside observer i'd be sympathetic to that.
what i hear directly from questrade trading reps is that, in the past, they kindly performed instant journals upon request as a courtesy gesture to clients. But then the requests became too numerous to handle. Moreover the clients were using the DLRs to gambit, so therefore the maximum revenue the poor broker could earn from a gambit round trip was the teeny $4.95 commission from the sell side (krey are you one of these $4.95 gambit clients using the DLRs? pshaw ... i have no sympathy for you
what then happened is that questrade decided upon a ironclad delay strategy. Yes they'll journal gambit carrier stocks, but they will no longer accept individual custom orders to journal instantly. Instead they'll journal on a slower basis, possibly batching all gambit journal orders overnight, etc.
i for one am sympathetic to this. It's a bit outrageous for a junior $4.95 commission client to demand an instant gambit journal, which means that a busy trading representative has to stop all other orders, possibly boot up an alternative system, etc ... for zero money? c'mon
that's why i suggested that offering the full agent-handled commission for the sell side might possibly work. However questrade seems to have elaborated an in-house mythology that the minister of finance prohibits gambit trading in RRSP :biggrin: so i'd say that the outlook for instant gambit trades is not looking real good chez this broker.
Thanks, that's good to know. It seems like you've actually done this from your description of the process. I'm still new to online trading but considering eventually getting an account with BMO, mainly for an USD RRSP. It's one of those things nobody advertises and which you apparently only learn after the fact.
Also, if I may ask for a bit more of your time, you mentionned avoiding DLR... why? What fee are you trying to avoid?
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