RBC Direct Investing accounts | RBC Royal Bank | Discussion forum

Greg, I think RBF2010 can also be bought via Royal Bank Asset Management, with no fees, or early redemption charges. One would have to ask the financial advisor in a Royal Bank branch.

That would not necessarily be the case if RBF2010 was bought via other discount brokers (not associated with RBC). Those discount brokers MAY charge an early redemption fee, e.g. if held less than 90 days, in order to compensate themselves for the lack of a trailer fee (for RBF2010 held less than 90 days). One would have to ask each brokerage that question.

I think Brian was asking if there are any fees for RBF2010 and whether cashable at any time. The appropriate answers were given with respect to buy/banking-scam-email, i.e. T+1 settlement - put in a buy or sell order during business hours before 4pm Eastern time and the account will settle at the close of the next business day.

However, the fee question is trickier. RBC itself, whether Royal Bank or RBC Direct Investing do not charge any fees to buy/banking-scam-email, even if done frequently, e.g. daily or weekly. That is not necessarily true if that fund is bought/sold via other discount brokers. Other discount brokers do sell RBF2010, but they do not necessarily tell you that some of them will charge an early redemption fee if sold within 90 days of purchase.

Real life example I experienced a year or two ago: In Scotia iTrade, buy 1000 units of RBF2010 on Feb 1. Then sell 500 units of it on Mar 1. Scotia iTrade will charge an early redemption fee.....and that is because they have NOT collected the 90 day trailer during that time. They are not a charity for other institutions' HISAs. I would bet that at least a few other discount brokers would also charge a redemption fee for early sale. Brokers treat these exactly the same as mutual funds.

AltaRed and others:

I was wrong -- RBF2010 is CDIC eligible which is a nice surprise.

I started looking at other bank's offerings and found that the Canadian Capitalist blog has an excellent writeup here and would point you there rather than my trying to restate what has already been well covered by Canadian Capitalist.

Greg

I have a few questions about RBF2010.
1) Although there is a minimum purchase amount of $500, does anyone know if there is a minimum account balance?
2) Is this money directly available to purchase securities etc. or does it have to be "cashed" out first?
3) Are there any fees or trading commissions applied for any purchases or sales of RBF2010?

You CAN have a tiny balance of RBF2010 in an RBC DI account.

I currently hold RBF2010 at RBC Direct Investing in 2 TFSA accounts, 2 RSP accounts and 1 trading account.

The TFSA accounts currently have 0.24 shares for a value of $2.40. I used to sell out the balance and then had to wait till I got $500 free cash to buy it back. Last time I executed a sell in the TFSA accounts it worked out I would be left with 0.007 shares after I sold what I needed to pay for an equity trade. I was going to raise the trade value by 7 cents but the trader suggested it made sense to leave 7 cents there so I could add any loose cash that later arose from odd amounts after dividend reinvestment on equities.

Ater the 7 cents sat there for much of February, they pad the month end dividend and that is how those accounts are now all the way up to 0.24 shares.

NOTE: I do have some 1293 shares of RBF2010 sitting in the trading account so they may be taking that into consideration. I don't think so, but am not 100% sure.

Last time I was buying something and had no cash in an account the trader offered up the opinion that I was probably going to sell some RBF2010 to pay for the trade. I was and we then executed a trade for the exact cash needed to pay for the previous purchase. As AltaRed said RBF2010 settles T+1 and equities and bonds settle T+3.

Greg

Had an interesting experience with RB Direct Investing recently. Had a bunch of GICs maturing over a few days, so when all had matured I reinvested the total funds, not paying attention to the redemption details, amounts, etc. Got my paper statement for June a week or so later and the account balance appeared a bit low, so I investigated and found they had deposited $25K (plus interest on $50K) into my account on the redemption of one of my $50K GICs (don't know if it's significant but it happened to be a GIC from a credit union, first time I'd reluctantly bought a GIC from my not-favourite type of institution, RB DI offers a few credit union GICs sometimes). Anyway, I called and told the rep to look at my June transactions, does he see anything funny?, and he picked it out. Called me the next day and said they're not sure what happened (I doubted that, maybe it was employee fraud, in any case they weren't going to tell me, not that I cared) but that another $25K has now been put into my account. When I suggested a treat for their error he gave me 10 free trades, I said thanks, and off we go. We've had our 4 accounts with RB DI for over 2 decades, never an error of any kind during boomer years, so I guess you should always check now that millennials, etc are running the show (gratuitous swipe at the young folks!).

Loonie said
In over 50 years of banking with both CUs and banks, the only error I've encountered was the failure to credit a student loan payment once many years ago. It was either CIBC or BMO. I only dealt with Big Five in those days.
It sure pays to review your statements though, if only to be sure of where you're at. Glad you got it sorted out.  

I've had an error on one of my Scotia iTRADE accounts that had to do with crediting the monthly distribution payment for, I believe, my American Hotel Income Properties REIT L.P. (TSX: HOT.UN) holding. It might've also been another holding had undergone a reorganization or name change of some sort. At any rate, they initially credited me the payment and, in the narrative, used a Scotia iTRADE account number that was not mine. They reversed it the same day before I even had to phone them and credited my account with what I presumed was the correct amount (and the correct account number).

Cheers,
Doug

kesa said
RBC DI fixed income pricing is one of the worst. eg I can buy MM at 4.35%+ at iTrade, same instruments at RBC DI ~2.2%  

I think you mean ISA @ 4.35%? If so, did you know that iTrade will let you buy F class DYN6004 @ 4.5%?

Most, if not all, of the major bank brokerages will only let you buy their in-house ISAs. That does not stop you from foraging for actual Money Market mutual funds that currently yield somewhat higher at RBC DI.... assuming RBC DI will let you buy from a wide range of MMFs.

One should be careful with fixed income quotes at Scotia iTRADE. Their quotes do not include the commission. That $1 per $1,000 bond, minimum $24.99, commission will make a significant difference in the actual yield with small orders and short term money market instruments.

In contrast, at RBC Direct Investing, the fixed income quotes include the commission and the quoted yield is the net yield:

3) For Treasury bills, bonds, strip bonds, debentures and other money market instruments, the commission is included in the quoted price. The minimum commission is $25 per transaction ($43 minimum commission for orders placed using an Investment Services Representative) and the maximum commission is $250 per transaction for all orders. Commissions for exchange-listed debentures are charged according to the Stocks Commission Schedule.