RBC Action Direct Rant

Ok I normally don’t rant too much, but this has got me so pissed off. I started investing my wife’s and mine taxable accounts with RBC Action Direct because they didn’t have any maintenance fees at the time. I knew the trading fees where not cheap, but in an effort to keep everything from being too complicated in our finances we both setup accounts there.

Then they introduced quarterly fees of $15 if your account value was below $5000. Ok that wasn’t great, but it didn’t take too much to increase our values beyond that.  So no big deal.  Then yesterday we get our latest statements and enclosed is a notice. They are increasing the quarterly fee to $20 unless your account value is over $10,000 as of March 15, 2008 (there are some exceptions, but I don’t qualify for them).

All I can think is what the hell are you people doing? You already charge over priced trading fees and now you are increasing maintenance fees every year or two now. Are you really trying to lose my business? That maintenance fee is like $80/year just to have an investment account with high trading fees. Do I really look that dumb? You [insert the next six swear words of your choice] bastards!

So in the end I’m looking for a new taxable account provider, any suggestions?  I don’t trade much and the account values will be below $10,000.

14 thoughts on “RBC Action Direct Rant”

  1. I know there have been a few details of dodgy customer service, but why not just switch over to something like Questrade. I’m sure you could find a fellow blogger that can give you a referral link and it’s only like 6 bucks a trade. I’m sure they would be happy to have your funds transfer over.

  2. I use Credential Direct: http://www.credentialdirect.com. No admin fees for trading accounts. Commission start at 19 bucks (even for limit orders) and max commission is something like 250 bucks on a single trade (yeah, i know it’ll be a while before either of us get there). The 19 dollar is standard, too…you don’t have to be an ‘active’ trader, like some brokerages in order to get better pricing.

    They also have some other benefits, like level 2 quotes for free. I use them an like them. I do have accounts elsewhere – long story, but my personal fav is this one.

  3. Overall Questrade is good (especially on fee & commission). But don’t know whether they’re “over-trading” (with too many clients but too little staff), my Oct 2007 RESP plan transfer application is now still “in progress”, could have to wait till end of Jan 2008!

  4. Thanks for MillionDollarJourney’s advice. I will call Emil when my account can’t be sorted out within the specified time.

  5. FT,

    Thanks for the link. I forgot about that post. It helped me direct my research into what would work best for us. I’m thinking Questrade for now, but I’ve got to look at the fees for transfer vs commission and tax issues of just selling and buying again.

    Don’t worry I’ll be using some referral links from fellow bloggers when the time comes.

    Thanks everyone,
    Tim

  6. fees for transfer vs commission and tax issues of just selling and buying again.

    Questrade will pay the transfer fees (as will most brokers) and you don’t have to sell and buy – just transfer the investments “in-kind” so there are no capital gains issues.

    Mike

  7. Mike,

    Actually in my case there will be only a small amount of gains so if I do have to pay the transfer fee I would come out better buying and selling.

    Tim

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