Scotia Itrade DYN6004 | Page 5 | Scotiabank | Discussion forum

Please consider registering
guest

sp_LogInOut Log In sp_Registration Register

Register | Lost password?
Advanced Search

— Forum Scope —




— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

No permission to create posts
sp_Feed Topic RSS sp_TopicIcon
Scotia Itrade DYN6004
April 6, 2024
1:56 pm
kesa
Member
Members
Forum Posts: 216
Member Since:
February 14, 2023
sp_UserOfflineSmall Offline

zgic said
I thought the non-registered brokerage account is always called Margin account. It does not mean I use margin. I am using it for so many years and never bought on margin.
I don't think there is any other non-registered brokerage account.  

Screenshot-2024-04-06-at-4.56.03 PM.png

April 6, 2024
2:12 pm
AltaRed
BC Interior
Member
Members
Forum Posts: 3020
Member Since:
October 27, 2013
sp_UserOnlineSmall Online

They are different when one fills out the application. The default is Cash account for most brokerages as compared to a Margin account. The one you have will be defined on the Scotia summary page, e.g. Scotia iTrade - Cash - XXX-XXXXX Scotia iTrade - RRIF - XXX-XXXXX, etc.

April 6, 2024
5:25 pm
Bill
Member
Members
Forum Posts: 3970
Member Since:
September 11, 2013
sp_UserOfflineSmall Offline

Yes, mine is a Cash, not Margin, account. As I have no other Scotia business I didn't open it online, I went to a branch where the bank lady filled out my iTrade application at the time, maybe she asked if I wanted cash or margin, I don't recall.

April 6, 2024
6:23 pm
zgic
Member
Members
Forum Posts: 125
Member Since:
August 30, 2023
sp_UserOfflineSmall Offline

savemoresaveoften said

The wealthsimple non-registered account for example is a cash account, not margin by default.
And that is a pain cuz one has to keep moving funds from cash account over to the trading account before one can put in a limit order.  

Oh good to know about this cash account and margin account. Questrade is just now showing availability of cash accounts. I was wondering what is a cash account. So I guess that is the reason I had only Margin account before.
Regarding your funds transfer from cash to margin to buy a limit order: Are you saying, for example, you have to buy $1000 stock with a limit order, we need more than $1000 in Cash account?
Limit order is actually good as we are defining a fixed price and buying as per what is exactly available as cash.

April 6, 2024
6:24 pm
zgic
Member
Members
Forum Posts: 125
Member Since:
August 30, 2023
sp_UserOfflineSmall Offline

kesa said

Screenshot-2024-04-06-at-4.56.03 PM.png  

Thank you kesa for sharing. Good to know about the 2 accounts.

April 7, 2024
4:56 am
savemoresaveoften
Member
Members
Forum Posts: 2946
Member Since:
March 30, 2017
sp_UserOfflineSmall Offline

zgic said

Oh good to know about this cash account and margin account. Questrade is just now showing availability of cash accounts. I was wondering what is a cash account. So I guess that is the reason I had only Margin account before.
Regarding your funds transfer from cash to margin to buy a limit order: Are you saying, for example, you have to buy $1000 stock with a limit order, we need more than $1000 in Cash account?
Limit order is actually good as we are defining a fixed price and buying as per what is exactly available as cash.  

Yup
For cash and registered account, you can only put in a limit buy order if the funds required for settlement of the buy order is already sitting in the account. Obviously you can put in any limit price sell order for any assets you already have in the acct at any time.

April 7, 2024
6:52 am
AltaRed
BC Interior
Member
Members
Forum Posts: 3020
Member Since:
October 27, 2013
sp_UserOnlineSmall Online

savemoresaveoften said
Yup
For cash and registered account, you can only put in a limit buy order if the funds required for settlement of the buy order is already sitting in the account. Obviously you can put in any limit price sell order for any assets you already have in the acct at any time.  

That should not necessarily be the case in a Cash account. The only requirement for Cash accounts in the brokerages I am familiar with is that the funds be in the account to pay for your purchase by Settlement day.

April 7, 2024
7:14 am
savemoresaveoften
Member
Members
Forum Posts: 2946
Member Since:
March 30, 2017
sp_UserOfflineSmall Offline

AltaRed said

That should not necessarily be the case in a Cash account. The only requirement for Cash accounts in the brokerages I am familiar with is that the funds be in the account to pay for your purchase by Settlement day.  

Interesting. How do they be sure that you WILL deposit the cash after the order is filled ? Yes they can sell the position if you dont, and make you responsible for the loss (if price drops). But sounds like a very inefficient mechanism and cant see why a brokerage has any incentive to do that.

With next day settlement now, I will be surprised if they will still allow u to buy in day 0, and deposit next day for settlement.

April 7, 2024
7:21 am
AltaRed
BC Interior
Member
Members
Forum Posts: 3020
Member Since:
October 27, 2013
sp_UserOnlineSmall Online

It has always been this way in non-registered accounts for trades (other than GICs) that I have made in Scotia iTrade, BMO Investorline and RBC Direct Investing for all the years I have been investing. Whether T+1 settlement (MMF, ISAs, Cash ETFs?) or T+2 (everything else). The change to T+1 from T+2 does not occur until late May sometime. GICs are T+0 settlement, i.e. the cash must be in account to purchase them.

They cannot be sure you will deposit the cash by Settlement day but you are expected too per the Ts&Cs of your account contract. They can always sell something in your account on your behalf and charge you both agent facilitated commission (in the order of $40 I suspect) plus interest for the cash loan until settled.

April 7, 2024
7:27 am
savemoresaveoften
Member
Members
Forum Posts: 2946
Member Since:
March 30, 2017
sp_UserOfflineSmall Offline

I guess WS is the only one that does it differently then ?
That is the ONLY cash trading account I have, and they require funds to be in the account before they will accept a limit order. So I have been transferring back and forth btw the cash deposit account and the non reg trading acct every time I want to put in a limit order, a huge nuisance.
All my other trading accounts elsewhere are always margin account.

April 7, 2024
7:46 am
AltaRed
BC Interior
Member
Members
Forum Posts: 3020
Member Since:
October 27, 2013
sp_UserOnlineSmall Online

I have no knowledge of how WS works. I do believe, as an upstart, it is an oddball/different from most other brokerages (IBKR being different as well). My brokerage needs have always been rather plain vanilla.

June 12, 2024
10:51 am
18k
Member
Members
Forum Posts: 4
Member Since:
June 12, 2024
sp_UserOfflineSmall Offline

I bought DYN6004 in the itrade account, why market value of the fund goes down?

June 12, 2024
11:32 am
AltaRed
BC Interior
Member
Members
Forum Posts: 3020
Member Since:
October 27, 2013
sp_UserOnlineSmall Online

18k said
I bought DYN6004 in the itrade account, why market value of the fund goes down?  

I have never seen a discrepancy between book and market values. ISA unit prices are fixed at $1.

June 12, 2024
12:06 pm
18k
Member
Members
Forum Posts: 4
Member Since:
June 12, 2024
sp_UserOfflineSmall Offline

AltaRed said

I have never seen a discrepancy between book and market values. ISA unit prices are fixed at $1.  

That's what I thought.... strange. Did DYN6004 charge any management fee if buy in the itrade? and the current rate is about 5%?

June 12, 2024
2:10 pm
AltaRed
BC Interior
Member
Members
Forum Posts: 3020
Member Since:
October 27, 2013
sp_UserOnlineSmall Online

18k said

That's what I thought.... strange. Did DYN6004 charge any management fee if buy in the itrade? and the current rate is about 5%?  

iTrade does not charge buy/sell commissions for these ISAs and the quoted yield (5%) is the net yield after any fees (there are none in F series). Market price, book value and market value is always $1 per unit.

No permission to create posts

Please write your comments in the forum.