If you are considering switching from one discount brokerage to another – you should try to get the new broker to pay for the transfer-out fees. Most brokerages in Canada will pay these fees as long as you have enough assets to make it worth their while. I believe in most cases $25k in assets would be enough but check with your new institution to find out the exact deal.
Follow through with the transfer fees
Recently I switched from Questrade to RBC Direct to take advantage of their 1% deal (no longer active). Part of the offer was to pay for any transfer fees that are normally charged by the relinquishing institution. I had assumed this would be taken care of automatically and had forgotten about it until I recently was looking at my Questrade statements for tax purposes and noticed the $125 transfer fees. I decided to check my RBC account for any credit for the fees and sure enough – there wasn’t anything.
I phoned RBC and they told me I had to fax a copy of the statement showing the transfer fee before crediting my account. I wouldn’t be surprised if this is normally the case for where transfer fees are being covered. For anyone else who did the RBC deal then the fax number is 1-888-722-238. Indicate your rbc account numbers on the fax.
Summary
- Get the new brokerage to pay for any transfer fees.
- Follow up and make sure they pay the fees – send documentation if necessary.
If you are planning to move back to Questrade then read about the Returning to Questrade deal on transfer fees.
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