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June 21, 2023
11:34 pm
LK
British Columbia, Canada
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For a one-year GIC (unregistered), I'm curious as to the pros and cons of GIC brokers as opposed to the online FIs. For example, 1 yr GIC at three FIs is currently at 5.25% vs 1 yr GIC with some brokers at just over 5.50% and change. Leaning to GIC Direct (BC).

Point me to prior threads if there are some, or let me know your thoughts?

June 22, 2023
3:56 am
kesa
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1) counterparty risk
2) CDIC vs non crown
3) transaction ease

June 22, 2023
4:45 am
hayman
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KESA can you beat 5.1% registered on a locked 10 yr GIC paid yearly?

June 22, 2023
8:59 pm
Loonie
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I'd go with the GIC broker, and have done so. In this case, the rate wins as long as you don't exceed insured limits (incl interest) and write cheque to yourself. Some brokers will send a courier to pick up your cheque if you are conveniently located.

June 22, 2023
9:45 pm
fat_dog
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A lot depends on were you live in Canada . Thing are different in Ontario than they are in Manitoba
and maybe other provinces . If any things go wrong . Th law suit would have to be in the province
the G.I.C. Broker is in . So I am told

Most stock brokers sell G.I.C at lower rates usually .

How are gic broker regulated . By a province or buy the federal government . Or not at all

How are disputes settled do they have an Ombudsman or Meditation procedure ?

If you buy from a stock broker or Bank those things are a given .

Maybe theses are question that should be asked up front

so that their will not be problems latter . And you know what you are getting in to

June 23, 2023
5:39 am
Tommy Tutalidge
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hayman said
KESA can you beat 5.1% registered on a locked 10 yr GIC paid yearly?  

If it was me I'd be putting the bulk of my money into 10 year GIC's at the present moment.

June 23, 2023
7:18 am
gicjunkie
Ontario
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fat_dog said
A lot depends on were you live in Canada . Thing are different in Ontario than they are in Manitoba
and maybe other provinces . If any things go wrong . Th law suit would have to be in the province
the G.I.C. Broker is in . So I am told

Most stock brokers sell G.I.C at lower rates usually .

How are gic broker regulated . By a province or buy the federal government . Or not at all

How are disputes settled do they have an Ombudsman or Meditation procedure ?

If you buy from a stock broker or Bank those things are a given .

Maybe theses are question that should be asked up front

so that their will not be problems latter . And you know what you are getting in to  

For insurance coverage it does not matter which province you reside in or where the GIC broker is. It matters where the financial institution is and what it is. The insurance coverage for each province or bank (CDIC) is dependant on the institution's nature (credit union, bank, etc.) and location. You are purchasing a GIC from a financial institution. The broker is just facilitating that process. The actual GIC certificate does not mention the broker. As mentioned earlier, if a broker ceases operation, your GIC is still in effect with the financial institution.

June 23, 2023
8:43 am
dickyran333
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hayman said
KESA can you beat 5.1% registered on a locked 10 yr GIC paid yearly?  

Which FI is offering 5.10% on a 10-year GIC?

June 23, 2023
8:46 am
fat_dog
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Why it matters what province the G.I.C. Broker is in Has to do with the law that apply to the g.i.c. broker . and how they are regulated if at all . What you have said is true if their is no G.I.C. B rocker involved . Thus the risks of dealing with one and not the institution directly .

The above statement is just what I said in the first post . An other party here called it third party risk

Why would an institution that sells G.I.C. To the public sell at a higher interest rate
thorough a G.I.C. Broker ?

you seem to be promoting some thing here !

do you really think some one should buy a G.I.C. through a broker
because they saw a post on a board of one person good or bad experience with them ?

or should they do their due diligent and ask question so they understand
what they are getting .

I am just asking here the question I would have as part of due diligent
and after I had the answers decide if it was right for me .

and I would encourage any one to do their do diligent when buy investment products . Not to rely on one person experience on a board.
they could be a seller or a sellers AI trying to promote a product

June 23, 2023
9:28 am
UkrainianDude
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dickyran333 said

Which FI is offering 5.10% on a 10-year GIC?  

I suspect it is a case by case basis .

June 23, 2023
11:17 am
Norman1
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LK said
For a one-year GIC (unregistered), I'm curious as to the pros and cons of GIC brokers as opposed to the online FIs. For example, 1 yr GIC at three FIs is currently at 5.25% vs 1 yr GIC with some brokers at just over 5.50% and change. Leaning to GIC Direct (BC).

Point me to prior threads if there are some, or let me know your thoughts?

Some previous posts:

… the customary deposit broker commission …
What's the catch? …
They are called "flash sales". It is one of the reasons smaller financial institutions work with deposit brokers. …

I've used deposit brokers in the past. No issues. Need to drop by their office to drop off the cheque and to sign the paperwork from the GIC issuer.

June 23, 2023
11:58 am
fat_dog
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Once again one person experience if this is not the same person or an AI it not due diligent .

When a GI.C broker appears on the site is this an endorsement
of the broker by this site ? what liability dose the site have for having them on the list . If some one was to loose money due to an FI on the list would this site be responsible ?

June 23, 2023
12:32 pm
Wrayzor
GTA
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One person's experience is exactly that - his/her experience. Which is exactly what the OP wanted to know. Multiple people offering the same experience is not indicative of a conspiracy or evidence of an AI trying to lure you.

The forum is for sharing experiences - positive and negative. One can learn from both. Or ignore, as one is free to decide.

BTW, I have no experience with GIC brokers but have learned plenty from reading these forums.

June 23, 2023
1:35 pm
Alexandra
British Columbia
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Just my 2 pennies:

I have only dealt with GIC direct and went directly to their office in person.

When I have made out a cheque for any GIC purchase, it has always been in the F.I. name. I always have received a GIC "certificate" from the institution. Also, I have had the option of having the maturity or annual payments mailed to me or to pick them up at the office. The cheques are always in my name and not to GIC direct.

Haven't purchased anything from them for a couple of years now but dealt with them for many.

June 23, 2023
5:12 pm
Loonie
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The rates went up at the GIC brokers today. The one year rate that OP was interested in is now 5.6%, probably at MCAN. It's a good deal except that they may require min 100K, which means interst would not be insured.

June 23, 2023
5:47 pm
Norman1
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That 5.6% for one year could be from MCAN.

GIC Wealth offers a 5.6% one-year rate with a $100,000 minimum. No issuer disclosed on their web site.

Fiscal Agents offer the same one-year rate and discloses that their 5.6% is from MCAN with $100,000 minimum. The MCAN one-year rate falls to 5.55% for $25,000 minimum.

June 23, 2023
9:36 pm
Norman1
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dickyran333 said

Which FI is offering 5.10% on a 10-year GIC?

UkrainianDude said

I suspect it is a case by case basis .

To all comers, Motive Financial is offering 4.95% on 7-year to 10-year GIC's (minimum $1,000).

June 24, 2023
8:56 am
fat_dog
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Wrayzor said
One person's experience is exactly that - his/her experience. Which is exactly what the OP wanted to know. Multiple people offering the same experience is not indicative of a conspiracy or evidence of an AI trying to lure you.

The forum is for sharing experiences - positive and negative. One can learn from both. Or ignore, as one is free to decide.

BTW, I have no experience with GIC brokers but have learned plenty from reading these forums.  

and a fool and his money are soon parted

right or wrong is determined by the market place and how much money you
make . and they let any one be a member regardless of success or failure of the person
no assets requirement no income requirement . so you could be getting the experiences of unsuccessful people .

June 24, 2023
9:30 am
canadian.100
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fat_dog said

and a fool and his money are soon parted

right or wrong is determined by the market place and how much money you
make . and they let any one be a member regardless of success or failure of the person
no assets requirement no income requirement . so you could be getting the experiences of unsuccessful people .  

but you could also be getting the experiences of successful people .........
I like listening to successful people or people with something positive to add.

June 24, 2023
10:07 am
fat_dog
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correct but since their is no income or asset requirement you do not know the
advertisers could be from AI or advertisers . some one is making money of this site
what are their biases . Do they have to be truthful

I do not tell people what to buy I tell them to ask the right question to find out if the investment is for them . I do not promote things as other do

or pretend if some thing worked for me it will work for them .

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