Scotia iTRADE has a 3:30 pm cutoff for mutual fund orders:

Orders must be submitted by 3:30 pm for current day consideration.

If you redeem or switch your mutual fund within 90 days of the purchase date, there are fees that may be relevant to you: Early Redemption Transaction fees may be charged and deducted from the settlement amount by some mutual fund companies including Scotia Mutual Funds. Please refer to the prospectus of each fund for details.

Scotia iTRADE makes the increased buying power of a brokerage ISA sale available within 20 minutes. The recognition isn't immediate. But, one does not need to wait until the next day.

Once, in the last three years, I missed the 2 pm ET cutoff on a day when I bought about $6,000 of MFC. It cost me about $3 in interest for the one day gap between the MFC purchase and the ISA settlement.

Since then, I make sure to sell ISA units the day before I make any equity purchases.

I seem to recall brokerages, TDDI in particular, identified the potential problem and made the in-house TD ISA cutoff closer to 4pm. A few others IIRC have indicated 'best efforts' to make ISA funds available even if the ~2pm cutoff was missed.

Mordko is correct in saying that would not be an issue with margin accounts. At most, a day's interest might be payable.

That all said, it is a potential glitch with ISAs and MMFs that does not exist with Cash ETFs.

NorthernRaven said
Aren't unsettled ISA/MMF (and mutual funds in general) sale funds available for purchases in the same way as unsettled exchange equities sales funds? I thought they were all involved in the same net wash, and you wouldn't have to wait for the cash to settle the next day.

TDDI has a concept called "near cash", which includes your holdings in ISAs and certain other liquid equivalents such as MMFs. Even without selling you can make a purchase up to their value, and sell off in the near cash positions that same day so that they all settle on the same T+1. I believe TD will forcibly sell if you don't. I'm can't remember if this is available in registered accounts, but I'm 99% sure I was able to use unsettled ISA/Mutual proceeds ("trading cash") for purchases the same day. It may be different at different brokers?  

ISA/MMF orders are processed at the end of the day based on NAV, so the proceeds are not available instantaneously when you need them, like with ETFs.

TDDI and margin accounts in general may give you credit vs assets including MMFs, and that's my understanding of TDDI’s “near cash” concept. Credit is different from using proceeds of unsettled ETF sale.

It's not a big deal but I find ETfs more convenient for re-balancing.

TDDI has a concept called "near cash", which includes your holdings in ISAs and certain other liquid equivalents such as MMFs. Even without selling you can make a purchase up to their value, and sell off in the near cash positions that same day so that they all settle on the same T+1. I believe TD will forcibly sell if you don't. I'm can't remember if this is available in registered accounts, but I'm 99% sure I was able to use unsettled ISA/Mutual proceeds ("trading cash") for purchases the same day. It may be different at different brokers?

In addition to higher yield, you get the advantage of being able to sell and use the money right away to buy something else when re-balancing. With ISAs/MMFs the process is a bit painful as you have to wait until the next day.

pwm said
I recently sold all my TDB8150 and bought TCSH. My son recommended it. It's what he uses for readily available cash.  

Just remember that sells of TCSH will? likely? end up on a T5008 due to different acquisition and disposition prices. Can be good given cap gains/loss tax rates but can also be a real nuisance.

I wasn't aware ... Much Appreciated

Dean

I think every DIY brokerage has some now. Certainly BMO IL and Scotia iTrade and RBC DI do (the brokerages where I and/or spouse use).

Warwick111 said
I have been keeping some short term cash in TDB8150 and currently it is paying 1.8%.
I just noticed that I can buy ETF: TCSH for free and the yield is 2.74%, 1-year return is 2.63% according to yahoo.finance.

Why would I use TDB8150 when I can get better return from TCSH with no fees?

Say What ... an ETF @ TDDI with No fees/commissions⁉️

How's that❓

Dean

mordko said
And I would expect more of a lag when BoC rate changes for TCSH.  

Just as there is for money market mutual funds with duration in the order of 90-120 days. While I agree they are in the same asset class, i.e. ISAs vs MMFs vs Cash ETFs, they are not identical animals. Investors need to understand why they would buy, or not buy, each of those offerings.