Are you mainly buying HSAV.TO or CASH.TO | Page 5 | Investing | Discussion forum

AltaRed said
Do you mean new ISA holdings in other accounts? With an ISA sponsor like ATL backed by CIBC, I wouldn't think you would need to be concerned about CDIC limits.  

OK sounds good. So if I put my 2nd ISA order for ATL now, it gets completed only on Monday, so my interest rate starts from Mon or Tue?

mordko said

So, when OSFI says that HISA ETFs must have 100% liquidity requirement (for banks), they are obviously lying? Is it a conspiracy of sorts?

As a result of these new rules, banks now must classify deposits from HISA ETFs as unsecured wholesale funding with 100% run-off, requiring 100% liquid coverage.

…

There's no conspiracy because OSFI requires no such thing. That's just fake drama in the media last year while OSFI was looking into those large deposits some banks had accepted from so-called cash ETF's. The ETF companies suggested, in their disclosure documents, that those deposits were "cash" deposits that could be withdrawn on demand.

OSFI's October 31, 2023 decision letter is to the deposit-taking institutions only. That does not include the ETF's as they are not federally regulated deposit-taking institutions under OSFI's jurisdiction.

The decision was that such deposits from ETF's should be classified in the prescribed wholesale funding category. Any deposit-taking institutions that has not been classifying the deposits in that category had until January 31, 2024 to do so.

There's no requirement to provide 100% liquidity to the ETF's for such deposits. The requirement for that deposit category is that the deposit-taking institution needs to have 100% liquidity coverage (not liquidity) for any deposits that could be withdrawn in the next 30 days that are in that category.

There's no requirement that the deposit-taking institution contractually allow depositors to withdraw any deposits in the category within 30 days.

It would be really unfortunate for the cash ETF and unitholders if too many unitholders wanted to sell and the ETF couldn't pay the market makers on settlement date in T+1 days because a large chunk of its "cash deposits" had a notice period of 15 days or 60 days.

AltaRed said

If your order is put in before the circa 2pm cutoff time today, it will be reported as 'contracted' late tonight or Monday morning, filled late Monday (when you actually pay for it) and possibly not get interest starting until Tuesday. It likely depends on how interest is calculated, e.g. closing daily balance, or minimum daily balance.

I've never been concerned about that sort of thing (a day's interest here or there) so am not certain.  

I got 2 days of interest and 13 units have been added to my total. How does this work? Will the Units Held be always a round figure, because my investment was 44K and now it shows Unit Held 44,013, Unit Price $1.00 and Total investment of value $44,013.46
I can only sell the Units Held and it is 44013. So how can it always be a round figure for Units Held? because interest rate is 5.15%

zgic said

I got 2 days of interest and 13 units have been added to my total. How does this work? Will the Units Held be always a round figure, because my investment was 44K and now it shows Unit Held 44,013, Unit Price $1.00 and Total investment of value $44,013.46
I can only sell the Units Held and it is 44013. So how can it always be a round figure for Units Held? because interest rate is 5.15%  

Re-invested units will always be to 3 decimal places. Some brokerages show these transactions as 2 separate entries, one entry for whole units (13) and another entry for the thousandths of a unit, i.e. 0.460.

Units held will show as 44013.46 in the Holdings section of your account for a value of $44013.46.

As an FYI, it gets a bit more complicated when the thousandths of the re-investment transaction is actually 3 decimal places, e.g. 0.461 or 0.467. In that case the re-investment is rounded to the nearest cent, which in the case of 0.461 units, it is rounded to $0.46 and in the case of 0.467 units, it is rounded to $0.47.

Norman1 said
Stocks currently settle T+2 days. Brokerage ISA's settle T+1 day. Consequently, one doesn't need margin and can buy the stock as soon as one's broker recognizes the buying power added by the "sell" of a brokerage ISA.

That recognition depends on the broker. I've found that Scotia iTRADE recognizes the buying power in such cases within an hour.  

TD Direct Investing, I do not really know how they calculate Buying Power, but I always buy a stock first when my balance is $0, after the buy order is processed, balance will be negative. Then I either sell TDB 8150 or transfer money from another bank into my TD DI account, as long as the Settlement Date for buying stock is on the same day as the Settlement Date of Selling TDB8150 or transfer in date, it is OK, TD DI does not charge any fee. CSR told me in case, something wrong, for example, the bank does the transfer transaction late, TD DI they will not charge me if I explain with a reason.
So I have TD DI account , not investing accounts at other banks because this. Even TD DI charges $9.95 commission fee but I save more money earned from the interest on TDB8150.
I asked RBC DI, Nation Bank Broker account, CIBC EDGE, all do NOT allow me to buy a stock when balance is $0. TD DI is the only one I can buy a stock when my balance is $0.

usephrase said

I asked RBC DI, Nation Bank Broker account, CIBC EDGE, all do NOT allow me to buy a stock when balance is $0. TD DI is the only one I can buy a stock when my balance is $0.

Scotia iTRADE and BMO InvestorLine will accept buy orders in non-registered accounts when settled cash and trade cash are both $0 and there is marginable equity in the account.

I suspect the other discount brokerages do as well and they just misunderstood the question.

If one wishes to formalize the arrangement, then one would apply to have the cash account upgraded to a margin account.

Settled Cash is the cash actually in the brokerage account.

Trade Cash is Settled Cash plus proceeds from filled sell orders, still to settle, minus funds owed for filled buy orders, still to settle.

Marginable Equity is Settled Cash plus the marginable part of the value of the account's fully-paid-for stocks, bonds, mutual funds, and other assets.

It is up to each investment dealer to dceide if the client would be good for the difference for buy orders above the current Trade Cash of the account if the orders actually filled.

I know Scotia iTRADE and BMO InvestorLine do not stick just to the Trade Cash for accepting buy orders in their non-registered accounts.

usephrase said

I am thinking how TD DI calculates the Buying Power, TD DI account numbers are like:
12345A, 12345B, 12345J, 12345S for Cash CAD, Cash USD, TFSA, RRSP.
Does TD DI bind all these kinds of accounts together?
Anyway, in TD DI, no worry about Buying Power, you can often buy a stock first, then sell TDB8150 or Transfer fund into TD DI.

Scotia iTRADE doesn't share buying power across accounts. Each account has its own buying power at Scotia iTRADE. The US$ and Canadian dollar sides share buying power only if they are sides of the same Scotia iTRADE account.

Registered accounts, like TFSA's and RRSP's, are not marginable. So, their buying power is calculated differently.

TD Direct Investing definitely cannot share RRSP account buying power with the Cash accounts. There's tax withholding on RRSP withdrawals except in a few circumstances. So, $50,000 in an RRSP account won't net $50,000 if withdrawn to a cash account.

I tried RBC Practice Direct Investing account, it seems the RBC DI only allowed me to buy a stock when there is cash balance , when I practised, I always got this error: insufficient funds in your account to cover your purchase. …

Practice accounts are not full accounts. I remember someone thought one discount broker didn't offer bonds. Turns out the broker did but not through their practice accounts.

The discount brokers have their individual strengths and weaknesses.

BMO InvestorLine seems to have a better selection of commission-free ETF's than Scotia iTRADE. BMO InvestorLine still does not charge commissions for mutual fund trades.

Scotia iTRADE still has their unpublished $0 commission on small orders of bonds that mature in 89 days or less.

Offerings like TD Easy Trade are not full brokerage accounts. TD Easy Trade accounts can only hold common shares, preferred shares, ADR's, and TD ETF's. No GIC's. No ETF's from other than TD!

I have non-registered accounts at both BMOIL and Scotia iTrade. I've never paid any attention to Buying Power data. I either buy an equity when: 1) I have the cash in account or 2) can provide the cash in the account on Settlement Day through a transfer in from elsewhere, or 3) a sale of ISA units within the non-registered account that same day, or 4) from the sale of another equity in that account that same day.

IOW, I have done purchases both ways. With T+1 settlements on both equities and ISAs, one has to be sure to complete the sale of needed ISA units before order taking deadlines which is as early as 2pm rather than stock exchange close at 4pm.