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Email this7:18 pm
December 18, 2024
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Any suggestions?
Need to replace Oaken!
9:22 pm
August 4, 2010
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I'm pretty sure that GIC issuers generally offer the same rates to all the brokerages who distribute for them in that channel. There will be a couple of exceptions, for instance TDDI will often offer TD GICs at 1 basis point over the next highest, just so they bubble to the top of the chart, but as far as I know, 3rd party GICs will likely have the same rate at all brokerages that carry them.
For brokerages, it will come down to which institutions they work with, each will have a somewhat different mix. Some may carry provincial credit union GICs, which I don't think TDDI will. And you may get slightly lower rates from a brokerage than direct to the FI - Home Trust/Bank GICs for instance are usually at least 25bps lower at TDDI than through Oaken direct, and various promo GICs out there usually don't translate into the brokerage channel. But the convenience may be worth the small difference and the possibile nuisance of transferring money around.
7:41 am
September 30, 2017
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That's a lot of criteria, on the thread title ... plus Oaken is excluded in the 1st post!
For my perspective, it is "rate-centric". And in today's climate, I'll set the bar at 4%, if a candidate can actually reach it. Instead of locking funds to long-term GICs, I've been adding Provincial bonds to my TDDI portfolio. Although it is not backed by CDIC, it is backed by taxpayers like you & me.
10:17 am
October 27, 2013
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It is not clear to me re thread title just what the weighting of each of the criteria is though I suspect it is GIC rates. As already mentioned by NorthernRaven, GIC rates at DIY (discount) brokerages generally cannot (do not need to) compete with direct-to-retail offerings, e.g. Oaken Financial retail vs Home Trust/Home Bank at brokerages.
GIC rates at discount brokerages only have to compete with other fixed income available to account holders at brokerages, e.g. bonds, plus the issuers of GICs generally pay discount brokerages a commission (0.25% x number of years) to be the agent for their GICS. Example: commission for a 5 yr GIC of $10k would be $10k x 0.35% x 5 = $125.
What one gets at the discount brokerage is access to a wide range of GIC issuers such that CDIC coverage limits is not an issue, plus access to a far wider range of fixed income offerings such as bonds and/or publicly trade bond ETFs. It is this latter approach that I have used for most of my investing journey, a few exceptions aside. I have no time nor patience for a multitude of retail offerings/accounts.... and besides fixed income investments are a small part of my portfolio. I don't care about 25bp differences in GIC rates.
Added: Meant to add that if the criteria is access to a wide range of GIC issuers across various types of accounts, e.g. non-registered, TFSA, RRSP et al, then it is likely the best inventory and range of GIC issuers will be with the 5-6 big bank discount brokerages. Spouse deals with RBC Direct Investing while I deal with BMO Investorline and Scotia iTrade.
Some 80% of their GIC issuers list will be the same as will be GIC yields... except each will position their in-house offerings competitively, e.g. RBC will offer higher yields for their RBC GICs at RBC Direct Investing than the same RBC offerings at competitor brokerages, if they are offered at all. OTOH, all 3 of those brokerages might offer Concentra Trust GICs at exactly the same rate and that makes sense since it is Concentra (Equitable Bank) that sets the rate, not the discount brokerage.
10:37 am
January 12, 2019
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GIC-Fanatic said
Any suggestions?
Need to replace Oaken!
I'm guessing this is about Oaken's recent problems with IT & Service issues.
If so, it looks like you don't expect Oaken to fix it self any time soon.
I am of a different opinion. 
- Dean
" Live Long, Healthy ... And Prosper! "
