This is a question for Canadians only - is 50 dollars annually a good deal for an online mutual funds account?
Question:
I just wonder if buying them through a conventional bank branch is going to cost the same thru management fees, random bank charges etc.
I like the ease of online trading, and already have a stock trading account with the same brokerage company. I'm not an exceptionally savvy investor but am working at being one.
let me know your thoughts!
thanks
Answer:
crazy, i won't pay 50 dollars just to hold a mutual fund account.
Bank like RBC, their online banking can trade mutual fund like the 50$ account does. Purchase mutual fund thru a branch usually has no load. Except you are buying any 3rd party fund (ex. You went to RBC and buy AIM Trimark ).
Advantages to purchase from bank:
1) Usually free
2) Free advisor
Disadvantages:
1) Limited products selection
Have you been to a few different banks (yes not just you current financial institute) and requested documentation with fees and schedules of trading options?? If you currently have an on-line trading account, you may be best to stick with them because you know them, your used to them, and hopefully you trust them (if not then why would you continue to use them). On-line services can offer more and better analysis for short term, but the people in the bank can be robots, passing on info to you that the branches investment team thinks would best suit them primarily, then you second.
Basically, if your happy with your on-line trading company, talk to them and ask them what they offer that other don't, and if your happy, stay with them.
sounds good but shop around and $50 annunally is kinda weak if you ask me.
unless this is the fees they are charging (which doesn't make sense to do)
I would look around a bit more. but could you elaborate on the $50?
I can't believe they are going to charge you $50 per year for an online Mutual Funds account.
I deal with the TD, so this seems foreign to me - I have an RRSP account (for mutual funds) in addition to my discount brokerage RRSP and cash accounts, and I can view or make purchases at any time for no fees in the account for mutual funds. I can do it all online, set up pre-authorized purchases, and a number of other things as long as the mutual funds are sponsored by TD (i.e. not RBC mutual funds in my TD account). Selling, though, is another thing, as most funds have the minimum hold time, etc. I take it that you aren't talking about an RRSP, are you?
Once you have a high enough balance, regardless of what type of account you have, you can be sure that they will waive any or all fees related to your account.
To compare mutual fund accounts, check out these links:
TD (http://www.tdcanadatrust.com/mutualfunds...
RBC (http://www.rbcroyalbank.com/rbc:raucyi71...
CIBC (http://www.cibc.com/ca/mutual-funds/inde...
BMO (http://www4.bmo.com/personal/0,2273,3564...
Scotiabank (http://www.scotiabank.com/cda/content/0,...
I hope this helps. I'd really call them on their fees, if I were you. Shop around - those fees are cutting into your profits.
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