Norbert's Gambit with Questrade: Step-By-Step Guide (2020)
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Buying Bitcoin through Questrade on a TFSA account : BitcoinCA
Hey Reddit! I'm Brendan Wood, one of the founders of Passiv. We make it easy for you to invest with a model portfolio like CPP, CPM, or whatever you want. Ask Me Anything! I'll be answering questions today from 2pm-5pm EST.
Hey there, I’m Brendan Wood, one of the founders of Passiv. Our mission is to help normal people manage their own investments and stop paying high MERs to banks. We do this with a web app that makes it easy to invest with a model portfolio in your own brokerage account. We don't hold your money, we don't give advice, and we don't charge absurd fees. Passiv will help you follow a model portfolio for free by giving you the trade calculations, but you can pay to unlock more advanced features like:
one-click trades for executing the trade calculations
advanced currency handling
excluding stock picks from your balanced portfolio
Here's a demo that lets you try Passiv with a paper account, no email required! Right now we only support Questrade accounts in Canada, but we'll be everywhere by the end of the year. Backstory I learned about couch potato investing from our saviour Dan Bortolotti right here on PFC. I had some mutual funds already, so I did some math and realized that not switching would be the single most expensive mistake of my life. So I opened a Questrade account in 2015 and got to work. In 2016, I got tired of using spreadsheets to do couch potato investing. I found it hard to stay on top of investing new contributions and dividends across a few accounts, and as a software dev I just can't stand manual data entry. I almost moved to Wealthsimple, but figured I'd try one last shot. I wrote a little Python script to connect to Questrade's API and do my contribution/rebalance calculations automatically (here's the source code). Pretty simple, but it was a breath of fresh air. I told some friends about it, they wanted to try it, so I turned it into a really crappy web app. It sort of snowballed from there into our official product launch right here on PFC two years ago. The feedback and support we got from that AMA is what's driven us to keep building ever since. What's next? Canada is a small market for inexpensive software like Passiv. We need to grow in order to keep doing this. Our strongest focus is launching support for more brokerages, especially in the USA and internationally. Stay tuned in October! We are always building new features too. On our 6-month roadmap we have:
Asset class support (including tax optimization features)
Read-only access for all Canadian brokerages
We're based in Fredericton NB
Our full-time staff are 75% Brendans
We funded Passiv's development with bitcoin (despite not supporting crypto assets within Passiv)
All of our features were suggested by our users first
One thing to keep in mind is that I’m not a financial adviser and so the usual disclaimer applies: anything I say should not be considered financial advice. That said, hit me with your questions and I’ll answer to the best of my knowledge.
How-to & FAQ for holding Bitcoin and Ethereum in an RRSP/TFSA
A few months ago I came across a way to hold crypto in my RRSP/TFSA and have been answering questions about how to do that in comments, DM's, and Skype consults. I figured it would be helpful to put together one big comprehensive FAQ. Cryptocurrency is treated as a commodity by the CRA and you must pay capital gains taxes on any profits if held outside a TFSA. If bitcoin goes to $1m as some are predicting, the Canadian government is going to be taxing a huge windfall in capital gains taxes. BACKGROUND Bitcoin & other crypto cannot be held directly in a RRSP/TFSA, and there are no eligible ETF's in North America yet. However, the ETN COINXBT which trades on the Stockholm Stock Exchange in Sweden (Nasdaq Stockholm) is eligible. ABOUT COINXBT COINXBT holds bitcoin directly and its price per share is based on a 0.005 multiple of the current bitcoin price. For example, if the current price of bitcoin is $10000USD, a share of COINXBT will be worth $50USD (ie: $493 Swedish Kroner) Company's website and full prospectus at: https://xbtprovider.com/ Price quote / chart: https://www.bloomberg.com/quote/COINXBT:SS HOW-TO TRADE Only some Canadian brokerages allow you to trade on eligible international exchanges in your TFSA. Some do not. Typically placing trades on international exchanges online is not an option and must be made over the phone broker-assisted at a much higher cost than typical North American securities. CANADIAN BROKERS I've called pretty much every brokerage to inquire if international securities can be held in a TFSA and what the fee is to transact. You may want to call yourself to see if policies have changed, but here's a summary:
National Bank: $75 per trade + $0.06 per share (confirmed works)
TD: Fee dependent on amount traded. Up to $5K is $187, $80K would be $520 per trade (confirmed works)
CIBC: $250 minimum, based on trade amount. $50K would be about $350 to buy and $350 to sell (confirmed works)
Scotia iTrade: $250 CAD per trade CAD, unlimited shares & order size (should work)
BMO Investorline: Fee-based on total trade amount. $50K would be $325 to buy $225 to sell, $50-$60K would be $350 to buy $240 to sell (should work)
Not available, or not available in RRSP/TFSA:
Interactive Brokers, can trade it, but not in RRSP/TFSA
HSBC (has access to almost every exchange other than Stockholm)
FAQ's Are you sure it's legal? I'm quite sure it's illegal.
I used National Bank Direct Brokerage. The fee's came out to $75 per trade + $0.06 per share. For example, the commission for a trade I did for 885 shares of COINXBT was $75 + $53.10 for a total of $128.10. Canadian funds were used to make the purchase and there were no forex fees for converting to Swedish Kroner (SEK)
How do I make a trade once I'm ready?
Call your brokerage and say you want to place a trade on the Stockholm stock exchange. You may be forwarded to a person that specializes in that, and eventually to a broker that deals with placing order on international exchanges. Tell them the symbol to trade is COINXBT and the name of the ETN is "Bitcoin Tracker One".
How do I calculate the number of shares to trade to max out my TFSA?
The price of COINXBT is in SEK. In my case using NB I took my balance minus anticipated fees divided by the current price to see how many shares I could buy. For example: For a $10,000 TFSA, current COINXBT price = $554.77SEK (84.27CAD), would be 117 shares at a cost of $9859.59 + $82.02 commission for a total of $9941.61CAD
Market or Limit order?
The first time I placed an order for COINXBT I tried to place a limit order a little below the market price. Over the next week the price of bitcoin ran up a lot and didn't come down. I ended up buying a lot higher. Since then I've been placing limit orders slightly above the current price or just market orders so that they go through right away. I've had no issues doing it either way.
When can I trade? Is it only possible to make the trade while the Swedish market is open and the TSX are open at the same time? Or can you place the order at any time of day?
XBT Provider has said they will monitor forks for 3-months and then decide what action to take. In the case of Bitcoin Cash, they sold the forked coins and distributed it as a dividend to anyone that held ETN shares on the fork date.
What about other cryptocurrencies?
An ethereum ETN was recently launched: COINETH that also trades on the Stockholm exchange. https://www.bloomberg.com/quote/COINETH:SS Other than that, I am not aware of any other eligible crypto securities that can be held in a RRSP/TFSA
How is the price of COINXBT determined?
It's based on the average price of the top 3 exchanges
Why not just buy GBTC?
GBTC is traded on the OTC exchange in the US and is not RRSP/TFSA eligible
Why can't I place a trade online myself?
For now, there are no crypto ETF's on North American exchanges. They have been in the works for years in the US, but no approvals yet. Evolve funds recently said they plan to launch a Canadian Bitcoin ETF. Trading COINXBT is a bit of a hassle, but you're getting in ahead of everyone else that are not willing to put in the time/effort. Once the Canadian/US ETF launches, it will probably be worth it to sell COINXBT and switch to the North American one which should be easy to trade online just like other ETF's.
Feedback If you've managed to get crypto into your RRSP/TFSA in any other ways than listed above please do leave a comment and I'll update the post. Thanks!
Questrade Wealth Management Inc. (QWM) and Questrade, Inc. are members of the Questrade Group of Companies. Questrade Group of Companies means Questrade Financial Group and its affiliates that provide deposit, investment, loan, securities, mortgages and other products or services. E*TRADE Financial Corp. is reportedly preparing to enter the cryptocurrency world with plans to allow customers to trade popular coins such as Bitcoin and Ethereum on its platform.The move would The only eligible ETN/ETF for a TFSA that tracks the price of Bitcoin is traded on the Stockholm Exchange and Questrade doesn't have access to the Swedish market only US and Canada. If you want to use that money to invest in Bitcoin you'll need to withdraw it from Questrade and either buy Bitcoin directly or open a brokerage account with a In other words, if you don’t see DLR in the Executions tab of the Questrade trading interface, you can’t do any journaling. However, once you buy DLR you can immediately request to journal the shares. You do not have to wait the 2 business days for the trade to settle first. Hope this clears things up! Reply The Basics of trade bitcoin questrade Social TradingcanadaIf you decide to trade products offered forex pip comparison by FXCM Australia Pty. If you’re looking to buy Bitcoin with Paypal (or a credit card) solely for trading purposes, please review the broker recommendations above.Their focus remains theHowever, suppose by this time the
How much can you make from selling options: $700 profits for week ending August 7
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