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US$ Registered Plan Component - what you need to know

We're excited to bring you a new US$ Component for your existing Retirement Savings Plan (RSP) and/or Tax Free Savings Account (TFSA). Beginning November 28, you'll be able to maintain US$ cash balances and settle your trades in U.S. dollars, as well as have US$ dividends and interest paid directly to your account in U.S dollars.

Here are a few things you need to know leading up to November 28.

- November 22, you'll see the new US$ Component(s) in WebBroker (U=RSP & K=TFSA).
- November 24-26, continue trading U.S. securities in your RSP/TFSA as you always have until the new US$ Component is available for trading on November 28.
Please note: As you're placing orders, please don't place any orders with "Good Till" dates past November 26.

- November 26, after market close:
All filled U.S. orders in your RSP/TFSA with a settlement after market close will be transferred to the new US$ Component of your registered accounts(s).
All open, unfilled orders in your RSP/TFSA will be cancelled. If you would like to reenter any orders, this can be done in the US$ Component of your account(s) on November 28.
All U.S. priced securities will be moved to the US$ Component and Dividend Reinvestment Plans will be maintained.
Please note, full functionally for the new US$ Component is not currently available on the TD mobile app and it’s expected to be available by mid-December.

If you have any questions or require assistance, please contact an Investment Representative at 1-800-465-5463. We’re here 24 hours a day, seven days a week.

Thank you for choosing TD Direct Investing.
 

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I chatted with one of their traders earlier this afternoon on a separate issue, and I asked him about Norbert's Gambit. His message to me about performing Norbert's Gambit in the RRSP was that:

1) You can still buy an interlisted stock (e.g., TD, SU, CNQ, HSE, etc.), so no need to use the DLR method and wait T+3 days, etc.
2) You can call them right away (on trade date) and not have to wait till settlement date
3) TDDI trader will perform the journal over to the US side

He indicates that the new US $ RRSP account creates more work on the part of the traders and less work on the investor. He encourages the investor to journal it over on the trade date rather than settlement to reduce the volatility (i.e., in case the initial purchase of the stock goes down). In terms of commission, he admits it's a hit or miss depending on whom you get. He says the "textbook" response is to charge the $43 or whatever phone commission. However, he himself and some other traders he knows typically do not charge the phone commission if it's a one-time journal over transaction. From what he says, it seems to be a professional judgment thing on their part. In essence, if you get a good trader, you should only be charged the initial buy and sell commission to get US cash.
 
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