TD Direct International Increases Rates For Smart Investors

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This won’t affect those who invest at least 10 times a month.  But smart investors would never do that.

TD Direct International wants a bit more money from the rest of us.

It would be nice if they could continue to drop fees, like the brokerages in North America. Sigh.

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Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I’m happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

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14 Responses

  1. Ron says:

    Look at DeGiro. Commission free and service charge free for buy and hold investors.

  2. Greg says:

    Ahh…perfect timing. Just as I was about to pull the pin and choose TD.
    Back to the drawing board. Any info/suggestions towards Keytrade or HMS Markets? I’m a canadian, residing in China, hoping to set up account in Luxembourg.

    • Greg,

      TD Direct International is still fine. Many other brokerages may try to seduce you with lower rates. But from my experience, they don’t keep those rates low! That said, “low” is very relative. Overall, I don’t view the TD Direct International fees as unreasonable.

      Cheers,
      Andrew

  3. Patrick says:

    Hi Andrew

    I’m back with another question. Having setup with Saxo and followed the UK ETF plan you laid out in your book I was wondering how investing in the likes of iShares UK Gilts 0-5 will actually ever make money given its incredibly slow increase. The reason I ask is because to open an order is at 20GBP and to close is 20GBP so from the offset I’m 40GBP down. If I’m buying say 3k SGD worth of this bond ETF quarterly that’s 160GBP a year in open/close costs on something that looks to grow at a much slower rate than that?

    Most likely I’m not understanding it properly but when I look at my account is says I open with a 20 cost and I will close (I guess even after many many many years) with a 20 cost (per purchase)….or am I being really dumb here not understanding the maths? Apologies in advance if that’s the case.

    Patrick

    • Hi Patrick,

      Each time you buy, you will pay a commission. You could sell it all at once, many years down the road, and pay a one-time commission fee. Not to worry, it’s better than you think 🙂

      Cheers,
      Andrew

  4. Patrick says:

    And even a slow rising Bond will outperform say a yearly 4 x 20GBP commission?

    I think my problem is that because I’ve just started and I’m incredibly curious I check the bloody thing everyday and see my bond loitering around the -1GBP or -2GBP mark and hasnt gone into the green…but it’s only been 2 months so I’m sure this is a foolish expectation and should actually prompt me to buy more of the bond than say my FTSE100 and FTSE World ETFs.

    Thanks again.

    Patrick

  5. Martin B says:

    Hi Andrew, I’m an expat in China and have just opened a TD Waterhouse account and have two questions:
    1) I’ve received this response in response to my query about having to pay capital gains as a non-resident: “The account that we opened is a non-registered cash account. Generally in non-registered accounts, capital gains are taxable. However, I am not sure how it works for non-residents who are residents of China. You will have to consult an accountant to confirm”. Can you please confirm whether or not this is the investment account that you recommend in your book. If not, can you please recommend an alternative.
    2) I currently have a decent amount of money (over 100k) sitting in a non-resident TD checking account, and would like to start investing in a Canadian couch potato portfolio. Would you recommend investing the whole amount at this time (i.e. 60 stocks/40 bonds), or investing more gradually and perhaps using the funds for a down payment on property to be rented out.
    Many thanks!

  6. Jill says:

    Hi Andrew,

    I am a Canadian TD Direct International customer. I just learned TDDI has been sold to Interactive Investor.

    It leaves me a bit weary going from a reputable and established bank brand to a relatively unknown and young online investment broker.

    I am very curious to hear your opinion on this change and any factors TDDI customers should consider when making their decision to stay with Interactive Investor or to go elsewhere.

    Many thanks!
    Jill

    • Hi Jill,

      The ETFs that I own with TD Direct International belong to me, not to TD. So I’m not concerned about a new owner. If fees dramatically rise, I would swap to a different brokerage. Unless that happens, I’ll sleep well.

      Cheers,
      Andrew

  7. Indira says:

    I was looking at the Limit of protection for TD International and it is only 100000 euros. Should we be worried if we have more than that invested with them?

    • Hi Indira,

      I have more than that invested with TD and I’m not concerned. Should I be? I don’t know.

      Canadians can open with IB. But…I chose TD because IB is a U.S. brokerage. The assets are domiciled in Chicago and I want to be 100% certain my heirs won’t have to pay U.S. estate taxes.

      Cheers,
      Andrew

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