Should You Use Index Funds or ETFs?

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Worse, will it cause folks to want to do more trades because they are cheaper? I doubt it, but it remember if you are tracking the initial COST of the trade is:. As a consumer I have mixed feelings about fixed fees — on anything, especially if I end up overpaying for a service.

On most fund information sheets the MER is clearly stated and td waterhouse etf trading fees fee is taken out before clients td waterhouse etf trading fees their rates of return. I absolutely see your point about feeling less special because that was my initial thought as well.

I guess TD Waterhouse is trying to make securities td waterhouse etf trading fees affordable for the masses. Are they aware what they are paying for? Interesting questions, assuming everyone does would td waterhouse etf trading fees a bit naive in my opinion.

Adding index funds to my portfolio is another way to keep the overall cost down. I also buy no load mutual funds because I refuse to pay transaction fees. But maybe as a financial planner I am an exception to the rule. Until the big bank brokerages drop their annual account fees, though, some of the independents still have a marketing tool.

So even that barrier is starting to come down. For those who want to do a couch potato ETF or a blue chip dividend stock portfolio this may be good news.

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Paying it forward as best I can. Cheap Trading Fees a Good Thing? I doubt it, but it remember if you are tracking the initial COST of the trade is: Share this information with Others: Search the Site Search for: Visitors So Far 1, hits.

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Even if you do not buy the linked book, any purchase where you originally got to Amazon. Your support is appreciated. Canadian Money and Tax Matters. I have a few questions for those of you more experienced in these matters. We want to move the funds as is and then sell them once we move them. The sooner we unload these rotten AGF funds, the better. The couch potato approach using index funds is something we've wanted to try, but we currently have all of our non-TA investments at Scotia iTrade in the form of TFSAs.

We do have an open TD Waterhouse account that we have never activated, but we're not sure if it's worth the hassle of having active accounts at both places. Any advice would be welcome. Having a number of accounts is no problem. I have numerous accounts and don't have any problem keeping track of them. I see that there is a yearly fee at TD, whereas the accounts at Scotia iTrade are free. Fine for sophisticated investors, but not what I'm into.

Instead 'comparable' ETFs from Claymore are on offer. I'm just beginning to dig into all of this, but it's new territory. Basically anyone can build a basket of stocks and call it an ETF. The iShares funds are generally well thought of, but some of the ones that track sectors or emerging markets can be quite volatile. If you are pursuing a passive investment strategy, knowing what exactly your ETF is indexing is critical.

Again, anyone can build a list of stocks, or markets, or sectors give it a fancy name and call it an index.

I have not yet purchased any ETFs, and I'm not sure that I will any time soon as I generally add new amounts monthly and the trading commissions event at a discount brokerage will be too costly.

So basically, you have to be as careful with ETFs as you are with mutual funds. Finally, remember I'm just some bloke on the internet and you should make sure you do your own research including consulting the proper professionals. These aren't on that list that was posted https: Couch potato-ing the e-series funds, and the money just comes out of our account each month.

I like the diversification, built-in dollar cost averaging, no brokerage trade fees as with some ETFs , and relatively low MERs. I think you know this but just dont want to do you own research: The biggest caveat emptor would be that some ETFs dont actually hold the companies themselves but instead they sell swaps with other banks to mimic the return of the funds held.

This is especially true for dividend ETFs and some emerging market funds. I wont give you the link as a simple Google search will reveal this. You assume that because I ask for opinions that I take no time to do any research on my own.

Not so and not fair. Plus they often don't make much sense for investors with small amounts to contribute on a monthly basis. The TD efunds look interesting and the many good companies that we already drip, plus a few that we have yet to invest in but are considering, are also attractive for our RRSPs. I called TDW and the fees are not waived for efunds purchasers. We will go with iTrade and purchase DRiPs, since there are no admin fees.

Stick with what you know. Thanks for all of your input and assistance. It helped in our decision making. However the trading commissions on purchasing TD products are waived when you are purchasing through TDW. So, you need to decide - will your trading fees over the year be more than the account admin fee.

But I do agree, it is all a load of bollocks. Nonetheless, there are some pretty "mainstream" not "esoteric" ones available, e. Despite a comment posted above, they are very suitable for investors looking at making small investments either regularly or irregularly at no price disadvantage.

At least not according to TD Waterhouse. I did correct my post about there not being a wide selection. However the ETFs i see most often recommended - iShares - are not on the commission-free list, except for 2 of the lesser known iShares funds.

I have not evaluated the Claymore products that are supposed to be comparable. I also stand by my assertion that ETFs are a complicated investment product and that an investor should be careful to know exactly what they are buying. Everyone makes their own decisions and I'm glad you've found what works for you.

I'm not there yet. I am looking for an RESP account, not just a mutual fund account. I highly recommend the book "Traders, Guns and Money" as an interesting insider's view of the derivatives market - the points made are relevant to the ETF world I think in some cases.

I am also reminded of the recent furore over the "Muppets" comment attributed to internal memos of Goldman staff. If proved correct and verified that this is how a "venerable" Investment House views its customers perhaps we can all see why ETFs should be carefully researched as these are now the flavour of the day. Not all ETFs are created equal and some simply do not hold underlying company stock but have simply "derived" a value by selling swaps with other institutions.

This is how the ABCP mess started Johnny-G will understand that Muppet phrase all too well if he also uses the word bollocks. I can guarantee it wasn't 'V' for victory. I'll give that book a look-see next time I'm in the library. I have bought mutual funds and enriched Bay St types with my money. I have bought penny stocks on a "hot tip" and enriched God-knows-who with my money.

And now I just buy blue-chip dividend payers when I deem them to be cheap not often anywhere near a week high,and not as difficult as one might think if dealing with about 30 stocks from North America.

I do this via drips,or directly purchasing through a discount broker. I watch my costs like a hawk- I have called TDW at least 3 times in the past year to reduce fees,with success,I might add. And in general I steadfastly refuse to enrich the lives of any more "professionals",who over the years, have collectively "milked" the sweat of my brow.

I am still learning, and I make plenty of mistakes tuition ,like taking flyers on sino- forest, or even poor old beaten down RIM, or buyin too much SLF or MFC, at the wrong times,but even accounting for the cost of my "education", I still believe I am doing better than the days when I paid somebody in an office to manage the money that I worked for.

I ramble, but the the take-away point is you are always the best steward of your savings That was terrific and echoes my sentiments exactly. As to the previous comment re: That's what I was told today on the phone. Of course you can. No need to tell about e-series at this point. Then, you convert it with this form: No minimums, no fees. Find it online through TD website, print forms and send in. Don't bother with the branch, they have no idea what you're talking about.

But you really need EasyLine if you don't mind be restricted by just eFunds. Read the rules thoroughly, as there might be charges associated with eFunds, like selling within 90 days of purchase, or calling for assistance. MERs aren't the best in business either, but the whole thing makes an inexpensive package.

But yes, don't tell them anything about e-series because, as mentioned, they don't know. Especially for a highly 'managed' product that never seems to do very well. But I do think index mutual funds or ETFs have a roll to play, as long as you aggressively minimize costs.

I also need something simple and reasonably stable for the RESP, as extended family will be contributing to it as well. Yugrus - curious to know where you are getting cheaper MERs than e-series? Or you can assemble a neat bunch of DRIPs from here, and go on your own. But for registered accounts with no minimums and fees, eFunds is your friend. I will have to look into it. Just plain and simple EasyWeb. I need to transfer some mutual funds into my account, sell them and then buy efunds.

Then you download the form from eFunds to convert hour account to eFunds only. After you send the form in, it takes some time, but then you can trade eFunds with no commission. I'm sure that you'd have to sell whatever you hold now and transfer cash thought. I will go tomorrow and speak to someone at the branch. Thanks for all your help.

See if the new institution will cover it a lot will and be sure the old institution itemizes the transfer fee and sends you documentation ie final statement. This information comes from TD Canada Trust itself: Number of Messages Past Six Months: Too many to list!

Someone help me stop!!