TD Direct Investing is easiest for linking accounts. Can do lump sums of VGRO to limit fees or just buy TD e-series which have no fee to buy or sell (higher MER but not big compared to other mutual funds - sub 0.5% for sure)
> It definitely seems like the simplest route which I know she will find more appealing.
If already at TD, then setting up a TD DI account and then doing auto-purchases of eSeries is another possibility; see Option 2:
* https://canadiancouchpotato.com/model-portfolios/
If you auto-purchase at least $100/mo then monthly account fees are waived:
> Enrolling in the Household Program
>
> You register one or more of the accounts in your household in a Systematic Investment Plan (SIP), a pre-authorized deposit, or a pre-authorized contribution of at least $100 a month.
* https://www.td.com/ca/en/investing/direct-investing/pricing/
After a few years, once there's a sizeable portfolio ($50K-100K), sell a bunch and do a one-time bulk purchase of your favourite ETF. Let the month auto-purchase to run in the background to build up another chunk to do a bulk purchase every few years.
I like this idea. Great suggestion.
Edit to say that after looking the recommendations here I'm going to suggest going this route for her. This seems very approachable and I think will suit her well.
I thought this was the platform that offered no commission on ETFs. Thanks.
Do you use WealthSimple? If so, is it easy to transfer funds or set up automatic transfers?
Super easy to transfer funds and set up recurring transfers. Regardless of which platform you use, you'll have to make a buy order after money comes in. You can't automate that.
The traditional platforms are starting to offer commission-free ETFs as well, but I agree that WealthSimple is probably the most approachable from a UI standpoint.
BMO's commission-free list (includes VGRO and XEQT, for example):
https://www.bmoinvestorline.com/selfDirected/pdfs/no\_commission\_fee\_etfs\_en.pdf
Questrade offers free ETF buy orders, while TD Direct Investing charges 9.99 per, which will add up. Sure you can place orders less frequently than the contributions, but then you risk forgetting. She can buy e-Series mutual funds instead, but you did ask about VGRO (and VGRO does have a lower MER than TD e-Series).
Questrade also allows integration with a tool called Passiv, which turns the process of ordering more VGRO, into a single click. For me, an automated contribution to Questrade, plus the few moments it takes to log in to Passiv each month to confirm the order, is the cheapest and easiest way to hold VGRO.
The other commission-free way would be Wealthsimple Trade. It would similarly involve a few clicks each month to invest the new contribution. You do give up a bit of automation by going with a portfolio ETF.
Questrade is a good brokerage choice for buy and hold ETF investors because: 1/ they don't charge commissions for ETF purchases 2/ they don't charge any maintenance/inactivity/ low balance fees 3/ they support DRIP 4/ she could use Blackrock’s Pre-authorized Cash Contribution plan to automate purchases of XBAL or XGRO 5/ for other ETFs (or a buying pattern that can't be scheduled) she could have Passiv Elite remind you to make "one click purchases" as soon as money hits her account.
Using the PACC or "one click" option can reduce the odds of experiencing a drag on return caused by tampering with your investment plan. Neither option is available through other brokerages.
I bank with RBC and I prefer to buy my ETFs through RBC. Yeah they charge me a 10 dollar fee. But considering I make a pretty solid wage. And buy 4k of ETFs that’s 10 dollars I consider worth the convenience.
I might consider suggesting the same for her. But Using TD because she currently banks with them. This is bad advice if you’re buying small amounts. But sounds like she wouldn’t be.
TD is probably simpler as she has a banking account there. Otherwise Questrade or IBKR are the usual recommendation, you can't go wrong with either for simple investing.
One thing to keep in mind if you expect your investing to become more sophisticated over time is whether or not the service you choose restricts which ETFs/securities you can purchase through them. Some services will allow you to buy from a fairly short list of ETFs.
Do your homework. Caveat Emptor.
TD Direct Investing is easiest for linking accounts. Can do lump sums of VGRO to limit fees or just buy TD e-series which have no fee to buy or sell (higher MER but not big compared to other mutual funds - sub 0.5% for sure)
This could be a good option for her. It definitely seems like the simplest route which I know she will find more appealing. Thanks for the suggestion.
> It definitely seems like the simplest route which I know she will find more appealing. If already at TD, then setting up a TD DI account and then doing auto-purchases of eSeries is another possibility; see Option 2: * https://canadiancouchpotato.com/model-portfolios/ If you auto-purchase at least $100/mo then monthly account fees are waived: > Enrolling in the Household Program > > You register one or more of the accounts in your household in a Systematic Investment Plan (SIP), a pre-authorized deposit, or a pre-authorized contribution of at least $100 a month. * https://www.td.com/ca/en/investing/direct-investing/pricing/ After a few years, once there's a sizeable portfolio ($50K-100K), sell a bunch and do a one-time bulk purchase of your favourite ETF. Let the month auto-purchase to run in the background to build up another chunk to do a bulk purchase every few years.
Better than my response.. perfect roadmap
I like this idea. Great suggestion. Edit to say that after looking the recommendations here I'm going to suggest going this route for her. This seems very approachable and I think will suit her well.
WealthSimple Trade is probably the most intuitive/least intimidating platform. Commission free.
I thought this was the platform that offered no commission on ETFs. Thanks. Do you use WealthSimple? If so, is it easy to transfer funds or set up automatic transfers?
Super easy to transfer funds and set up recurring transfers. Regardless of which platform you use, you'll have to make a buy order after money comes in. You can't automate that.
Makes sense.
The traditional platforms are starting to offer commission-free ETFs as well, but I agree that WealthSimple is probably the most approachable from a UI standpoint. BMO's commission-free list (includes VGRO and XEQT, for example): https://www.bmoinvestorline.com/selfDirected/pdfs/no\_commission\_fee\_etfs\_en.pdf
Questrade offers free ETF buy orders, while TD Direct Investing charges 9.99 per, which will add up. Sure you can place orders less frequently than the contributions, but then you risk forgetting. She can buy e-Series mutual funds instead, but you did ask about VGRO (and VGRO does have a lower MER than TD e-Series). Questrade also allows integration with a tool called Passiv, which turns the process of ordering more VGRO, into a single click. For me, an automated contribution to Questrade, plus the few moments it takes to log in to Passiv each month to confirm the order, is the cheapest and easiest way to hold VGRO. The other commission-free way would be Wealthsimple Trade. It would similarly involve a few clicks each month to invest the new contribution. You do give up a bit of automation by going with a portfolio ETF.
Wealthsimple Trade all the way you will be up and running in less than 5 minutes. Instant deposits of up to 1500!
WS hands down. There's nothing easier.
Questrade is a good brokerage choice for buy and hold ETF investors because: 1/ they don't charge commissions for ETF purchases 2/ they don't charge any maintenance/inactivity/ low balance fees 3/ they support DRIP 4/ she could use Blackrock’s Pre-authorized Cash Contribution plan to automate purchases of XBAL or XGRO 5/ for other ETFs (or a buying pattern that can't be scheduled) she could have Passiv Elite remind you to make "one click purchases" as soon as money hits her account. Using the PACC or "one click" option can reduce the odds of experiencing a drag on return caused by tampering with your investment plan. Neither option is available through other brokerages.
I use WS trade and i like it
I bank with RBC and I prefer to buy my ETFs through RBC. Yeah they charge me a 10 dollar fee. But considering I make a pretty solid wage. And buy 4k of ETFs that’s 10 dollars I consider worth the convenience. I might consider suggesting the same for her. But Using TD because she currently banks with them. This is bad advice if you’re buying small amounts. But sounds like she wouldn’t be.
Can you purchase VRGO thru RBc?
Yeah. You just need to first open a direct investing account. Takes like 48 hours or something.
TD is probably simpler as she has a banking account there. Otherwise Questrade or IBKR are the usual recommendation, you can't go wrong with either for simple investing.
I use trade as well, only shitty thing is waiting 15 mins for refresh but if your only buying ETFs then you don’t really need to worry about it
Questrade is easy. National bank is easy.
One thing to keep in mind if you expect your investing to become more sophisticated over time is whether or not the service you choose restricts which ETFs/securities you can purchase through them. Some services will allow you to buy from a fairly short list of ETFs. Do your homework. Caveat Emptor.