Setting Up Accounts in Canada

WHERE TO SET-UP - A common question we get from our clients is "Where should I set up an investment account in Canada?" We believe the best value for the dollar is at one of the large discount brokerage firms like TD Waterhouse.  They offer low commission rates, a wide array of low cost mutual funds and exceptional internet-based services. TD Waterhouse is one of the largest discount brokerage firm in Canada. In the US, we use TD Ameritrade  making it easier to transfer assets or provide a consolidated investment management solution when your assets span both the US and Canada.

SIN - For those making the transition to Canada and wanting to open an account as a Canadian resident, you must have a Social Insurance Number. This is to ensure any income from the account can be tracked for income tax purposes.

TITLING YOUR ACCOUNT - The other question you will see on the account application form asks how you want the account titled. Most folks have no idea so they check any box or they don't check any at all, and the brokerage firm uses their default. In reality, the option selected can have potentially profound income tax and estate planning effects on your family in the event one of you dies or becomes incapacitated. This is not a decision that should be taken lightly. See the Estate planning section of this website for further details on these issues.

US DOLLAR ACCOUNTS - Another big question we get from our clients is "Can you can set up a US dollar account in Canada?" Here we have to hand it to the Canadian brokerage firms because the answer to the question is essentially, YES! In Canada , it is commonplace to open a US dollar account at a Canadian brokerage firm.

  The bottom line is the US brokerage firms are just not capable of opening and managing Canadian dollar denominated accounts at this time while Canadian firms are very adept at this.