US Resident, Canadian RSP (TD Direct) and ETFs

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martinleroux
Posts: 9
Joined: Fri Dec 29, 2006 2:14 pm

US Resident, Canadian RSP (TD Direct) and ETFs

Post by martinleroux »

Background: I'm a Canadian citizen who now lives in the US (Colorado). I still have a Canadian RSP with TD Direct. (The RSP contributions all pre-date my move to the US). Until now I haven't had any problems placing trades in that account, other than the inconvenience of having to get assistance from a live representative instead of being able to do so on-line.

Recently I tried to place a trade for a Canadian ETF (symbol XRB). To my surprise the representative told me that TD Direct no longer allowed US residents to purchase ETFs. He said this has been the case since earlier in 2022. He checked with his compliance team and said that this applies even though it's a registered account. Apparently it would be the same even if it was a US-listed ETF.

They didn't mind that I already hold some shares in the same ETF. They just won't allow me to add to my holdings.

Has anyone else run into this?

I can get similar exposure through a mutual fund, but it's annoying because the mutual fund MER is 1.21% versus 0.39% for the ETF.
martinleroux
Posts: 9
Joined: Fri Dec 29, 2006 2:14 pm

Re: US Resident, Canadian RSP (TD Direct) and ETFs

Post by martinleroux »

If anyone's interested, I've given up on TD Direct and I'm now in the process of transferring my RSP to Questrade. Questrade allowed me to open a self-directed RSP even though I'm currently a US resident. (It depends on the state – they can't do that for residents of all states). The process for US residents is a bit convoluted but a friendly rep was able to assist. Unlike TD Direct they'll allow me to trade on-line and purchase ETFs.
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: US Resident, Canadian RSP (TD Direct) and ETFs

Post by nelsona »

Good to know. Thanks for the added information!
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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