Are you mainly buying HSAV.TO or CASH.TO | Page 6 | Investing | Discussion forum

@Norman1
@AltaRed

What you think ?
I think I confirmed that:

1.

https://nbdb.ca/learning-centre/start-self-directed-investment/choosing-investment-account/buying-on-margin.html#p1-1
https://nbdb.ca/help/transactions/trading-securities/purchasing-power.html

At National Bank Direct Brokerage (NBDB)， Can only trade with available cash in Cash account. You can not buy a new stock when your cash balance is $0.
I think this is why NBDB offers free commission to buy stocks or ETFs.

2.

CIBC Edge, because I have TFSA registered account, CIBC Edge told me: you Must have cash balance or Estimated Buying Power, then you can place an order to BUY a stock. Estimated Buying Power was increased after sold ATL5070, not before sold ATL5070.

CIBC Edge online account-> Trading->Buy, shows:
Buying Power is the money that's available for you to buy securities. It's an estimated real time total of cash, margin (if applicable) and other factors.
Did you know? Buying Power is estimated using:
Cash balances
The loan value for marginable securities, if held in a margin account
Pending cash transfers out
Open orders that decrease Buying Power
Filled orders before a settlement
For investment accounts, combined Buying Power converts all currencies to Canadian dollars. For registered accounts, Buying Power is calculated for each currency.
A buffer of up to 5% is added to the cost of an open order, reducing your Estimated Buying Power. The buffer accounts for potential market movements when using market orders and foreign exchange.

For Cash account, I do not know how they calculate Buying Power. The thing is CIBC Edge charges $6.95 commission fee, lower than other brokerage. Why lower fee?

@Norman1

Thank you for your information !!!

I don't see why one cannot.

In the second video, for January 3, the account has Cash of $56.42. Yet, the Buying Power is $1,973.07. Where did the additional $1,916.65 of buying power come from?

The account screenshots are not conclusive as they don't show the ourstanding orders on the account.

NBDB calculates buying power similar to other brokerages. At least it does for margin accounts:

What is buying power?

Buying power is the amount available through your margin account to purchase securities. Buying power is calculated by subtracting the value of the security cushion from the available margin, which is the cash in the account and the value of the margin provided by the broker.

Available Margin = (Cash + Loan Value)

Buying Power = (Cash + Loan Value) - Security Cushion

At NBDB, the security cushion is calculated at 30% of the value of the biggest loan value on a security held in an investor's margin investment account.

@ Norman1

This guy posted a new youtube video:
Current Orders: bought $7457.77 on Jan 13, to be settled tomorrow Jan 14
Buying Power= $ 7457.77+ $9303.26 Cash =$16,761.03

It seems that Buying Power at NBDB = Cash Balance + total value of To Be settled stocks.
Tomorrow Jan 14, the Buying Power will be $9303.26 after settlements.
Norman, What do you think ?

@Norman1,
Your comment makes sense, Buying Power at NBDB is supposed to be updated in an hour or something like this, that guy took screenshots in 10 minutes right after he placed BUY orders.

I called CIBC Edge Jan 13, 2025, she confirmed the Buying Power in Cash Account= combine Cash Balance in your Canadian and U.S. dollar accounts. If you want to buy a stock, you have to Sell ATL5070/other stock first then Buying Power will be updated, then you can buy a new stock. She confirmed the Cash account is the same as the registered account to calculate Buying Power.