ETF Investors: Internaxx’s Brokerage Has NOT Raised Your Fees

At the beginning of December, Internaxx sent an email to its investors. 

Before long, my inbox filled with questions of concern:  Why is Internaxx increasing our fees?

Internaxx (formerly TD Direct International) is a popular brokerage among expatriates. 

Fortunately, they haven’t increased fees for ETF investors. 

Here’s what the email said:

“From 1st January 2018, we’ll also be changing our fund pricing to make it more transparent. We’ll charge a quarterly fund administration fee of 0.1%…

ETF Investors are concerned, believing this would amount to an annual account fee of 0.4 percent per year.  But this isn’t the case.

Internaxx isn’t changing its fee structure for investors who hold ETFs or individual stocks. 

When Internaxx refers to “funds” the company is referring to mutual funds (unit trusts) but not ETFs (exchange-traded funds) or stocks.

 So, breathe easily, ETF investors: Internaxx is not planning to make your investing more expensive.






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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9 Responses






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  2. Anthony says:

    Hi Andrew,

    Loving the site and getting more interested with every post I read. After some research it seems that Internaxx may be the best option for me as a British Expat about to move to Germany. Can you please give me some advice on the index funds I should be selecting. Going by your previous advice on this site I should be looking for a split of 3 funds. Thanks.

  3. kaust2015 says:

    I started with internaxx in April last year as an expat in KSA. What is true for ETFs is not for mutual funds. Internaxx has become a terrible disappointment when it comes to mutual funds. They held some of the most exciting mutual funds for india and greater china and they gave them up. Some NAV get stuck for months and they don’t seem to care . Selling is not possible for months now that they are moving some funds to the clean version (so called cheaper funds) but they will add a 0.1%/quarter (min 15 euro) fee for each fund. For this operation they have gotten rid of >500 funds. I don’t mind the bad ones, but the good ones, I really don’t get it plus al ltheir technical glitches on NAV.
    ETF wise they are probably still good but for mutual funds they are getting really bad.

  4. Hannnah says:

    Hello, We are a teaching couple from the UK who live in Hanoi and we are finally trying to sort out a pension plan! We have read Andrew Hallam’s books and we hope to become ‘couch potato investors’ Andrews last blog update says the best brokerage on offer is currently Internaxx and we just wanted to check that is still the case? Any other advice or info. would be much appreciated thanks!

    • Hi Hannah,

      I’m glad you’re ready for a Couch Potato portfolio. I can’t recall ever saying Internaxx was “the best” brokerage to use, but it’s solid. I don’t think I have ever called any brokerage “the best”.

      Good luck with your savings and investing.

      Cheers,
      Andrew

  5. Allison says:

    I have found your books really helpful Andrew, but I’m a bit confused because having just opened an Internaxx account, it now appears that I can’t invest in any ETFs on Canadian markets because the providers don’t provide KIIs, which are mandatory as I’m living in Europe. Am I missing a trick here, or is this a particular obstacle for Canadian expats in Europe?

    • Hi Allison,

      After the book was published, a new European rule was put into play. But I can provide an option around that. You’ll need to buy off the London exchange, and not the Canadian exchange. Here’s the portfolio that would work:

      CCAU (Canadian Stock Index)
      IWDA (Global Stock Index)
      IGIL (International Bond Index)

      You can see how to diversify this based on your risk tolerance by looking at the other model portfolios in my book. For example, if you want something aggressive, use 10% bonds and 90% stocks. Split the stock portion between the Canadian and the global stock indexes. If you want a balanced portfolio (which I recommend) include 40% bonds and split the remainder between the global stock index and the Canadian stock index.

      Cheers,
      Andrew

  6. Bart Van Wassenhove says:

    Dear Andrew, I was wondering if you would still recommend Internaxx for expat investors who primarily want to invest in mutual funds, or if there are less expensive options out there that don’t charge a quarterly 0.1% or more?I’ve only ever invested in mutual funds and I’m disappointed that Internaxx has made it so much more expensive to invest in them. Thanks in advance for your advice.











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