How to dodge hidden fees charged by most online brokers. Plus, tips for effectively using GICs in your portfolio

Expect to pay $150 to break up with your online broker.

Pay it, then ask to be reimbursed by your new brokerage. It’s quite common right now for brokers to welcome new clients with a cover offer of $150 to $200 in transfer fees charged by their old company. Some examples of these offers:

  • CI Direct Trading will reimburse fees up to $150 for transfers valued at $25,000 or more.
  • Direct Investing Qtrade will reimburse transfer fees of up to $150 if you bring $15,000 or more to the business.
  • RBC Direct Investing says it will cover up to $200 in fees when you transfer $15,000 or more to the company.
  • The TD Easy Trade app offers to cover transfer fees up to $150 if you bring in $25,000 or more in assets.
  • Wealthsimple Trade refunds up to $150 for transfers over $5,000.

The website Sparx Trade is useful to find out what transfer fee offers are available. The brokers themselves are a little wary of these offers. If they’re mentioned on their public websites, it’s often in the fine print that you only see if you scroll down the homepage.

Transfer fees are also buried in most brokers’ commission and fee information. Many investors only find out about this fee when they transfer an account to another company and see a $150 debit on their statement.

If you find yourself in trouble for an account transfer, keep the statement showing the fees and send it to your new broker as soon as your new account is created. RBC requires proof of fee payment within six months of transferring your account.

Globe and Mail Digital Brokerage Ranking 2022 brokers reported that they charge $135 or $150 for transfers. The only broker with no transfer fees was Wealthsimple Trade.

Can’t find anything on your broker’s website about transfer fee coverage? It never hurts to ask a customer service representative for a refund, especially if you are bringing an account with serious assets.

— Rob Carrick, personal finance columnist

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The summary

In a difficult year for investors, these 3 ETFs were overlooked

Needless to say, this is a bad year for investors. All the major North American stock indices have been in the red since the start of the year. Bonds, which normally take over when stocks fall, are having their worst year since the early 1980s. Unless your portfolio is 100% invested in oil and gas stocks, you’re likely losing money. But there are a few outliers. Gordon Pape decided to research ETFs that might have been overlooked by some investors and came up with three interesting ideas.

Three negative influences that have shaken the markets – and where investors can take refuge

An unholy trinity of negative influences has rocked the markets over the past two weeks. First and foremost, rising interest rates. Second, the outlook for corporate earnings is darkening. Third, a global economy facing serious strains. As Ian McGugan tells us, markets are unlikely to stage a major rebound until at least two of this ugly trio begin to fade or reverse. He does, however, have some suggested actions that might work well in the current environment.

In a context of energy uncertainty, investors are betting big on nuclear power. Here’s how to approach it

Nuclear power is experiencing a resurgence in popular sentiment, as policymakers turn to clean and safe sources of energy. Will his moment in the sun translate into lasting gains for investors betting on uranium? David Berman shares some thoughts.

See also: How to play the return of uranium using ETFs

Why this $600 million fund manager is shorting the loonie and betting big on an energy rebound

Few investors have experienced the devastating effects of inflation like asset manager Rodrigo Gordillo, who grew up in Peru during the country’s “lost decade.” His family’s savings, held in a Peruvian bank, were wiped out when inflation skyrocketed 7,000% in 1988, followed by a deflationary crash that led them to immigrate to Canada to start a new life in the age of 8 years. The experience eventually led Mr. Gordillo to pursue a career in finance, focusing on the inflationary effects that had been an afterthought for many investors until recently. Brenda Bouw sat down with Mr. Gordillo, president and portfolio manager at ReSolve Asset Management, to find out what he’s been up to lately in the portfolios he manages.

Burned by obligations? Relief is spelled GIC

GICs are currently in high demand among conservative investors and savers looking for a hassle-free place to put their money. Rob Carrick takes a look at how to use them effectively in your portfolio.

More concerns for US stocks and bonds: the Fed increases the “QT”

As the Federal Reserve accelerates the unwinding of its balance sheet this month, some investors fear that so-called quantitative tightening will weigh on the economy and make this year even more brutal for stocks and bonds. Reporting by David Randall of Reuters.

See also: Profit or Pivot? Funds blink on Fed hawkish bets

Don’t believe the hedge fund hype – you’re better off in index ETFs

As inflation and the markets continue to turn, many investors are wondering where to put their money. Hedge fund managers are whispering solutions: they can short the market when they think the time is right. They can also transfer money to alternative investments that could drive up inflation. But long-term returns tell a different story. Andrew Hallam pulls back the curtain of deception to reveal that investors are likely to be better off in simple, low-cost index funds.

How BlackRock, the world’s largest fund manager, navigates the market chaos

Believe BlackRock, with US$8.5 trillion under its watch, that this time around there are no easy answers in the markets. Just as the COVID-19 pandemic has made us reconsider how and where we work, it is also reshaping how the global economy and financial markets work – and there is no turning back. Tim Kiladze spoke with BlackRock Chief Executive Larry Fink about his final thoughts for investors.

Others (for subscribers)

The most oversold and overbought stocks on the Toronto Stock Exchange

Monday analyst upgrades and downgrades

Monday’s Insider Report: Shareholder Takes Over US$200 Million From This Dividend Stock

Globe Advisor

Why the high-risk, high-reward biotech sector might be primed for a bull run

Are you a financial adviser? Sign up to Globe Advisor (www.globeadvisor.com) for free daily and weekly newsletters, in-depth industry coverage and analysis, and access to ProStation – a powerful tool to help you manage your clients.

Ask Globe Investor

Question: My financial advisor has advised me not to participate in the Imperial Oil (IMO-T) share buyback. IMO paid $77 per share, which is much higher than the current valuation. Interestingly, only 5% of general shareholders participated. Was it a good decision?

Answer: In early May, Imperial announced details of a major tender offer to repurchase up to $2.5 billion in shares at a modified Dutch auction. Interested shareholders were invited to deposit their shares at prices ranging from $62 to $78. On June 15, the company said it assumed and paid for 32,467,532 common shares at a price of $77 per share.

As of this writing, the stock is trading at $64.27, so it looks like those who didn’t participate missed out on a big gain. But wait, there’s a catch – there always is. The company said it estimates a deemed dividend of $75.25 per share was triggered upon the redemption, based on estimated paid-up capital of $1.75 per share as of June 10.

In other words, unless the shares are held in a registered plan, all sellers will be hit with a hefty tax bill. The dividend will be eligible for the dividend tax credit, but it still hurts. This is probably why your adviser suggested that you withdraw.

–Gordon Pope

What’s up in the coming days

The Contra Guys examine the investment record of Western Union, a high dividend payer and a company that has been able to stay in business since 1851.

Click here to view Globe Investor’s earnings and economic news calendar.

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Compiled by Globe Investor staff