Ready to invest first time. Please correct my plan/strategy.
I have almost finished reading Millionaire Teacher, and am ready to invest. Will keep funds in for at least 10-15 years. I need to figure out my risk tolerance. I'm approaching age 40, thinking of keeping 35% bonds. At this point, I need to have my account on a brokerage ready ASAP as I learnt that it could take a few days to set up. For now, I am looking to purchase ETFs regularly. I'm looking at putting $100 per month. Hopefully cash flow will be disciplined enough to continue without breaks. Currently, I have the following:
TFSA at Meridian CU
RRSP at Scotiabank
RRSP at Tangerine
Regular Savings at TD Bank (Got this only to view my mortgage account online)
Please help me understand the following:
How much cheaper is Norbert's Gambit than using a ForEx company to do a conversion from CAD to USD? I've never done either. I have done USD to CAD before, which basically takes 2-3 business days for the draft from the ForEx company to clear.
I am considering either Questrade, TD Direct Investing or Scotia iTrade. Based on the reviews Questrade seems to be the best option. Which one would you recommended for a beginner like me? (Would be great feedback if you have used Questrade and TD/iTrade.)
I mostly bank with Scotia. My investments will be 50K+ to start. Should I be considering iTrade over the other two for convenience? Or will the fees not make sense in my case?
Is Norbert's Gambit possible to do with Scotiabank?
Say I select Questrade, what is the most efficient (time/cost) process to move forward? Is the below correct?
Transfer TFSA from Meridian to TD.
Do Norbert's Gambit to convert to USD
Transfer USD TFSA to Questrade.
Transfer RRSP to TD
Do Norbert's Gambit to covert to USD
Transfer USD RRSP to Questrade.
What steps above will incur least fees? I understand Questrade covers upto $150 transfer fee? But if I transfer my registered accounts to TD for Norbert's Gambit first, those fees won't be covered?
Lastly, I'm not very knowledgable on RESPs. I understand gov't matches some part of the contribution? We have two kids, ages 10 and 8. No RESP yet. Can investments be made in RESPs? Any tips on this would be very much appreciated.
This is the short watered down version. Just started university online after moving back with dad at 21. Was previously a HS dropout and alcoholic, who tried to off himself with pills and booze. Im adding this as a little backstory, so you can have an idea where i came from. I am now a 23 year old online university student. I started in Sept 2019. I am also a forex trader, unbeknownst to my dad and grandparents. It pays for my limited expenses right now, but I love it and would obviously like to do after university. So I'm experiencing some pressure. Ill explain a bit now and a bit after the paragraph below in an attempt to keep this rant neat and orderly. School online (im essentially teaching myself) is hard and stressful. I learn better when I can work through something alone. Im an autodidact. But that doesnt make it less stressful. Both my grandparents and my dad are adding pressure, essentially saying "you've fallen behind in life, so chop-chop. When i was your age i was married and had your dad, or i was working three jobs.", saying things like "when do you think you'll be done with school?" "What will you do after?" "When are you going to get married?". Ok. Part one of priviledged stress has been explained. The only reason I went to university is because i found out my dad had about 11k set aside for my schooling, so i figured "well a finance degree would be helpful with my trading, and give me good job prospects should i need a good job alongside trading." He had this money in two RESPs (registered education savings plans). The first one I found out about had 1.4k in it. Helpful and I am grateful. It paid for my first and only course so far. The other amount of money i just found about is roughly 10k. My dad will not give it to me, however, because he wants to know EXACTLY what ill do with it. Its like he wants to know my exact movements before i get the money. He wants to give me just enough for a few courses, but he hopes he can keep some of it invested. Hes never been to university, and doesnt know how much it will cost. I dont know either. Each course varies depending on the amount of credits it offers, so its tough to gauge. Its more then 10k though. I told him i would like to use most of it for school and put some into a TFSA (tax free savings account) and then invest through that, as I see fit. In truth i would. But I would also put some into my trading account (trading is my real specialty). I'd wager something like $1000 in TFSA, $1000 in my forex account, and the rest more less for school. But thats not good enough. He wants to know who i would be going through for the TFSA, who would manage it, what I would be looking to invest in, etc. In lamens terms, its like this money has chains attached (screw strings) and im being strangled. And in case you were wondering, I don't want to tell them about me trading forex because it would just add more pressure, and the pressure may result in me making poor trading choices and losing money. Trading is already stressful as is, having impatient family members breathing down my may drive me to round 2 on the alcoholic train. I dont have enough money to move out or pay for schooling. I only have about 500$ in the bank, no car, no drivers licence, and no friends. Ive literally put the majority of my money, time, and energy into trading and school and I love it. Ive become a total recluse as a result and have lost all my friends as well. Forex doesnt give me enough to support myself at the moment, so moving out again is a no-no. The money id add to it would certainly help. Idk. Im just stupidly stressed and looking for some advice on my situation. This may not be the place, and I apologize..
Hey, so.. I just had an argument with my dad. But before I get into the argument, I need some backstory. When I was 21 I was an alcoholic, suicidal, and working two jobs part time jobs and taking cash gigs on the side to pay for my booze. At the time I was a HS dropout. Out of some stroke of luck, I reconnected with my dad, who I hadn't seen in years. I asked if I could move back in with him, partly to reconnect, partly to get out of the toxic environment I was in (crazy roommates), and partly for the financial backing. It would give me a chance to get my life together. So I move in, stopped drinking, and two years later I am a university student and forex trader (I make enough to pay for my limited expenses, so far, with the capital I have). The only reason I agreed to go to university was because my dad had 1/3 of the money I would need saved up specifically for my school in an RESP (Registered Education Savings Plan). Its about 11k. Keep in mind, university is online and I can pay course by course. Each course is roughly $900 depending on how many credits it's worth. To explain further, let me explain the pressure I'm feeling. No one in my immediate family (parents, grandparents) has gone to university, some haven't graduated HS. So they really don't know how much it costs and how time consuming/stressful it is, especially online because its heavily dependant on me "teaching" myself. I have no lectures to watch. I personally learn better that way, but that doesn't mean it somehow zaps the stress away. To add onto that, my dad and grandparents constantly say stuff like "you're already 23. When are you going to be done with school? (i started in September 2019, and only knew about 1400$ for my school in a different fund, so I only paid for 1 900$ course and have yet to see the remainder of that money.) What do you think you'll do for a career afterwards? What will this give you, in terms of skill/expertise?" And then the obvious, "when are you going to get married and have kids" talks that I reckon every child deals with. So that obviously all adds pressure, because it feels like they're rushing me and asking things I can't possibly know. Neither my grandparents or my dad know that I trade forex either. I haven't told them because that would just add more pressure, which may lead me to me making poor emotional decisions in the market, which could lose me money. So the issue is this, besides the pressure. My dad doesn't feel totally comfortable giving me the money. He wants to keep most of it invested in the RESP or a TFSA (tax free savings account), and he wants to have his managers manage it. I told him that I thought that was grossly unfair, because he said it would still be "my money". If it's my money, I should decide what I want to do with it. But he's persistent in his questionings, "where would you put the money if I give it to you, and who would you have managing it?" Almost like he wants to know where, when, and what I would do with it before he gives me the money. I told him I would use it for school, and put some in a TFSA to invest "as I see fit". What I didn't tell him is I would also put some in my trading account to increase the capital in hopes of making more money for the future. Forex is my specialty, after all. My dream is to live off my trading, but I'm not against working after university. I know how this sounds, me complaining about money when I have 11k pretty much given to me. But it feels like its not without its chains (fuck strings), and I feel like I have an ass ton of pressure on me, more then I did previously. Any ideas on how to handle this would be greatly appreciated. I apologize if I've explained this poorly, I literally had the argument 20 minutes ago and am frazzled.
How-to & FAQ for holding Bitcoin and Ethereum in an RRSP/TFSA
A few months ago I came across a way to hold crypto in my RRSP/TFSA and have been answering questions about how to do that in comments, DM's, and Skype consults. I figured it would be helpful to put together one big comprehensive FAQ. Cryptocurrency is treated as a commodity by the CRA and you must pay capital gains taxes on any profits if held outside a TFSA. If bitcoin goes to $1m as some are predicting, the Canadian government is going to be taxing a huge windfall in capital gains taxes. BACKGROUND Bitcoin & other crypto cannot be held directly in a RRSP/TFSA, and there are no eligible ETF's in North America yet. However, the ETN COINXBT which trades on the Stockholm Stock Exchange in Sweden (Nasdaq Stockholm) is eligible. ABOUT COINXBT COINXBT holds bitcoin directly and its price per share is based on a 0.005 multiple of the current bitcoin price. For example, if the current price of bitcoin is $10000USD, a share of COINXBT will be worth $50USD (ie: $493 Swedish Kroner) Company's website and full prospectus at: https://xbtprovider.com/ Price quote / chart: https://www.bloomberg.com/quote/COINXBT:SS HOW-TO TRADE Only some Canadian brokerages allow you to trade on eligible international exchanges in your TFSA. Some do not. Typically placing trades on international exchanges online is not an option and must be made over the phone broker-assisted at a much higher cost than typical North American securities. CANADIAN BROKERS I've called pretty much every brokerage to inquire if international securities can be held in a TFSA and what the fee is to transact. You may want to call yourself to see if policies have changed, but here's a summary:
National Bank: $75 per trade + $0.06 per share (confirmed works)
TD: Fee dependent on amount traded. Up to $5K is $187, $80K would be $520 per trade (confirmed works)
CIBC: $250 minimum, based on trade amount. $50K would be about $350 to buy and $350 to sell (confirmed works)
Scotia iTrade: $250 CAD per trade CAD, unlimited shares & order size (should work)
BMO Investorline: Fee-based on total trade amount. $50K would be $325 to buy $225 to sell, $50-$60K would be $350 to buy $240 to sell (should work)
Not available, or not available in RRSP/TFSA:
Interactive Brokers, can trade it, but not in RRSP/TFSA
HSBC (has access to almost every exchange other than Stockholm)
FAQ's Are you sure it's legal? I'm quite sure it's illegal.
I used National Bank Direct Brokerage. The fee's came out to $75 per trade + $0.06 per share. For example, the commission for a trade I did for 885 shares of COINXBT was $75 + $53.10 for a total of $128.10. Canadian funds were used to make the purchase and there were no forex fees for converting to Swedish Kroner (SEK)
How do I make a trade once I'm ready?
Call your brokerage and say you want to place a trade on the Stockholm stock exchange. You may be forwarded to a person that specializes in that, and eventually to a broker that deals with placing order on international exchanges. Tell them the symbol to trade is COINXBT and the name of the ETN is "Bitcoin Tracker One".
How do I calculate the number of shares to trade to max out my TFSA?
The price of COINXBT is in SEK. In my case using NB I took my balance minus anticipated fees divided by the current price to see how many shares I could buy. For example: For a $10,000 TFSA, current COINXBT price = $554.77SEK (84.27CAD), would be 117 shares at a cost of $9859.59 + $82.02 commission for a total of $9941.61CAD
Market or Limit order?
The first time I placed an order for COINXBT I tried to place a limit order a little below the market price. Over the next week the price of bitcoin ran up a lot and didn't come down. I ended up buying a lot higher. Since then I've been placing limit orders slightly above the current price or just market orders so that they go through right away. I've had no issues doing it either way.
When can I trade? Is it only possible to make the trade while the Swedish market is open and the TSX are open at the same time? Or can you place the order at any time of day?
XBT Provider has said they will monitor forks for 3-months and then decide what action to take. In the case of Bitcoin Cash, they sold the forked coins and distributed it as a dividend to anyone that held ETN shares on the fork date.
What about other cryptocurrencies?
An ethereum ETN was recently launched: COINETH that also trades on the Stockholm exchange. https://www.bloomberg.com/quote/COINETH:SS Other than that, I am not aware of any other eligible crypto securities that can be held in a RRSP/TFSA
How is the price of COINXBT determined?
It's based on the average price of the top 3 exchanges
Why not just buy GBTC?
GBTC is traded on the OTC exchange in the US and is not RRSP/TFSA eligible
Why can't I place a trade online myself?
For now, there are no crypto ETF's on North American exchanges. They have been in the works for years in the US, but no approvals yet. Evolve funds recently said they plan to launch a Canadian Bitcoin ETF. Trading COINXBT is a bit of a hassle, but you're getting in ahead of everyone else that are not willing to put in the time/effort. Once the Canadian/US ETF launches, it will probably be worth it to sell COINXBT and switch to the North American one which should be easy to trade online just like other ETF's.
Feedback If you've managed to get crypto into your RRSP/TFSA in any other ways than listed above please do leave a comment and I'll update the post. Thanks!
I'm an engineering student in Alberta enrolled in a coop program with 3 years left. Currently I am about $16k in student debt (70% Alberta, 30% Canada) with about $8k sitting in 0.8% Interest savings account which I can pay back whenever I need to as I have no expenses besides food and clothing. As you can tell I have much more loans taken out than I need to, this plus scholarships and grants I've been able to qualify for add up to alot of interest free money which I don't necessarily need. Adding on, I've got a position for my upcoming work term for 8 months which should earn me $30k gross (I have a total of 20 months of work experience in my degree) which in total can more than pay for my entire education I've been looking a lot into investing specifically into ETFs and indices with all this extra loan money which I don't need, and paying it off by graduation or holding on to it depending on how the interest rates are and my ROI. Interest rates for Alberta loans are prime, while Canada is prime + 2.5% if I were to choose the variable rate I am not going into this blindly, I've finished reading the Wealthy Barber Returns as well as Wealthing like Rabbits, I am about to take up The Intelligent Investor aswell. I have been keeping up with financials for over a year now actively checking markets learning how everything works and getting familiar with all the terms (Thank you Investopedia) Previously I traded forex markets (small amounts <$1k) for fun and also for the occasional profit, I stopped trading forex because it felt more of a gamble than investing. Now with all this background information covered, my question is: Is it a good idea to continue to take out as much student loans as I qualify for and putting them in a TFSA with a modest portfolio compromised of a diverse assortment of Vanguard ETFs? I would start off with about $4k and contribute regularly during my work terms.
Welcome to /CanadianInvestor! This is the expanded version of the sidebar to further explain some of the features of these links >Resources - Standard websites used for investment products besides Mutual Funds
TMX Money - Used for stock ticker quotes. has news on the front page as well as index performances. contains top market movers by volume and currency/commodity prices. this website is good for looking up tickers and viewing their valuations, graphs, news, location of headquarters and the tickers home website.
Currency Exchange - This is the Canadian Forex website where we can check out performance of currency for day to day reference
Stockchase - Could give you good or bad reasons to buy a specific stock from an educated perspective. like anything on the internet, it cant be taken seriously but it might shine light on something you may have not known about
>DefinitionsFinance - Common Terms - This has every term you need to know about finance >Couch PotatoBeginner Fundamental Index Investing - the go to strategy for setting up a starting portfolio to gain the average market performance >DRIPDividend Reinvestment Explained - dripprimer.ca which explains dividend investing. whole shares are only able to be reinvested unless you are enrolled privately through a company agreement to have partial shares reinvested >Risk in StocksUnderstanding your risk - common question in market exposure is sometimes how exposed do you want to be and what is comfortable for your situation. your tolerance level. www.getsmarteraboutmoney.ca has other investment ideas for planning purposes >TFSA InfoCanada Revenue Agency - common Q/A on TFSA's answered which should provide the information you need on withdrawing and contribution limits >Foreign TaxWithholding Tax - US listed companies or investment products (etfs) are subject to withholding tax unless they are held in an RRSP. this explains foreign withholding tax and what it means for your investments. >SEDARLegal Financial Statements submitted mandatory by companies
Now you can sit back, continue contributing to your TFSA with Questrade on a regular basis (of course being wary of the maximum contribution room per year in your TFSA), and watch it grow! If you can save up $400 a month and contribute it to your TFSA (and then invest it and buy the ETF) you are almost at $5500 of the contribution room. Stop using your TFSA to frequently trade stocks — the CRA may see it as taxable business income. Jamie Golombek: You may be surprised to learn that your trading activity could constitute a business, even if it’s done inside a tax-free savings account. Author of the article: Jamie Golombek. Publishing date: Jun 23, 2017 • • 5 minute read. The taxpayer reported the $550,000 profit on his ... Tax-free savings account holders will now be ultimately liable for any tax owing on income earned in a TFSA if the Canada Revenue Agency (CRA) determines that the holder has been carrying on a business of day trading in the account, according to a proposed change made by the federal government in its budget announced on Tuesday. Under current legislation, if a tax liability arises from the car Another advantage is Tfsa Forex Trading that Tfsa Forex Trading binaries can often be traded for shorter frames (1 hour, ... but I Tfsa Forex Trading like Forex in that you are given a greater flexibility in controlling the trade. there are alo a lot Tfsa Forex Trading of cam related to Binary option. One important thing to note id that you DO NOT want to take the bonu that a lot Tfsa Forex ... Each calendar year, customers can contribute up to the TFSA dollar limit for the year, plus any unused TFSA contribution room from the previous year, and the amount withdrawn the year before. Investments made inside a TFSA are not taxed. Withdrawal from TFSA is not a taxable event. Contributions into TFSA are not tax deductible. There's no upper age limit to maintain a TFSA account. Only ... Day trade for years but still only have $50k in your TFSA and they probably wouldn't bat an eye. You can still make outsized gains without daytrading in a TFSA so that they shouldn't be able to justify applying special rules to tax you. But, it may not even be worth considering until you already have a TFSA value in the top 0.1% If you or your clients are actively trading in a TFSA, you may be surprised to learn that this trading activity could constitute a business, depending on the particular circumstances, and the TFSA could be subject to taxes on business income. This has been a focus of recent audit and reassessment activities in which the Canada Revenue Agency (CRA) has been targeting taxpayers who actively ...
Day Trading Taxes in Canada 2020 Day Trading in TFSA ...
We break down the truth ... 🚨🚨Trading Performance 🚨🚨 Improve Your Trading Performance at our Fundamental Trading Academy https://www.toptradersfx.com ... Can You Trade Forex On E*trade? This video will answer lots of question on if you can trade forex on E*trade or not! lots of question on E*trade few weeks ag... Never trade without a stop loss. Even when trading with no leverage. ---- We interpret and explain price moves in real-time, 24 hours a day. Our team of analysts produce text, video and audio ... In this video, I will show a test that was done during the week of March 17th through March 23rd using a simulated trading account. The results were impressi... Get my FREE Trading Journal + Weekly Stock Picks: https://bit.ly/2WIm5rJ 🔽Time stamps: 2:32 Is day trading income business income or capital gains? 3:50 CRA ... #forex #forexlifestyle #forextrader Want to join the A1 Trading Team? See trades taken by our top trading analysts, join our live trading chatroom, and acces... The ONLY Forex Trading Video You Will EVER NeedTHIS QUICK TEST WILL HELP YOU BECOME FINANCIALLY FREETake it HERE: https://discover.tiersoffreedom.comTo join my ...