RBC Direct Investing Review

RBC Direct InvestingAfter 4 years with RBC Direct Investing, I am still pleased with the platform and the service. I initially made the switch from Scotia iTrade due to the lack of a true USD account and the fees for holding such account. The process was quite simple but it does take a bit of time for everything to be transferred. During the process, I happen to receive dividends 3 times with one of them repurchasing one share. I was a bit worried I would have to fill out the forms again but luckily, after notifying RBC Direct Investing through the secured message systems, they were able to easily transfer the shares and money every single time. It was quite a pleasure dealing with their service even through the secure messaging system on their website.

There is nothing better than learning from others and their experiences. In the case of RBC Direct Investing, I can share my experience but I have also gotten feedback from readers. One great option from RBC Direct Investing is the RBC practice account – a no risk approach to trying the platform.

As it happens, RBC Direct Investing is the second most used platform amongst my readers.

Discount Broker Reviews

Continue reading to learn more on the following discount broker features:

  • Trading Costs
  • Accounts
  • Usability
  • Transactions
  • Performance Monitoring
  • Mobile Capabilities
  • Investment Research
  • Customer Service

Trading Costs

The cost of a transaction is in line with all the other bank-owned discount brokers with a $9.95 rate per transaction. It’s a 1% fee on a $1,000 investment which I consider acceptable. In fact, if you want to use DLR to exchange USD for CAD dollars (or vice versa), you spend a minimum of $20 for the currency exchange. RBC now allows its customers to pay with RBC Reward points for trades which is an innovative way to leverage all the benefits the bank provides.

$9.95 seem to be an acceptable trading cost investors are happy to pay but there could always be room for improvements. I would say that it is a balance between a transaction fee and an account fee. Which one would you prefer as a consumer? If you trade more than 150 times per quarter, the transaction fee is $6.95 per trade while you maintain the number of transactions per quarter.

For more details on the RBC Direct Investing fees, see the formal rates from their website. Like many of the other discount brokers, there are no fees on mutual fund transactions outside of the fees paid within the funds referred as MER. If you hold mutual funds such as RBC Monthly Income Fund, your only concern is the MER. If you buy ETFs, you will be subject to the same transaction fees as a stock trade.

Comments by Readers

  • Inexpensive trades at $9.95
  • Low trading cost
  • Cheaper trading fees would always be welcome
  • High fees

Comments can be conflicting depending on the perception or expectation of the investor.


If you have a combined household value of $15,000 or more, there are no maintenance fees to pay but if you have less, there is a $25 per quarter fee. If you already bank with RBC, the fees may be waived if you meet the following (see details):

  • Has signed up for a Pre-Authorized Contribution(s) for a combined total of $100/month, $300/quarter or more
  • Has been an RBC Direct Investing client for less than six months (this allows new clients sufficient time to transfer assets to RBC Direct Investing)
  • Has a combined total of three or more commission–paid trades during the quarter across all RBC Direct Investing accounts (registered and non-registered)
  • Has a group RRSP account with RBC Direct Investing
  • Has qualified for the RBC Direct Investing Royal Circle® program
  • Has an RBC Student Banking® package, current or within the last five years
  • Has an RBC VIP Banking® package

The US and CDN accounts with RBC Direct Investing are working just like you would expect. There is a separate account in the currency for each type of accounts. The currency management per accounts work without paying extra fees or exchange rate to make a transaction within the account.

As a Canadian, my diversification is mostly towards the US with the large conglomerates dividend growth stocks providing me with my international exposure. I wanted to avoid currency exchange when trading as much as I could since it’s really painful to control and the cost can add up. With 43% of my holdings in US$, that’s an important feature to have for me as I also DRIP in the currency of the dividend stocks.

The holding tab provides a nice at a glance view of all my account summary with a different line per currency and a total in each currency including my cash holding in the currency. The latter was a pet peeve of me with Scotia iTrade as it was painful to really know how much cash I had in each currency. Every now and again I had to top up due to miscalculation and it was frustrating.

Comments by Readers

  • First discount broker to have a true US dollar account
  • US dollar RRSP
  • Canadian & US dollar registered accounts
  • Big bank security
  • Safety
  • Personal banking and investing accounts in one place
  • Already bank at RBC so it was easy to link to my accounts for contributions to my TFSA
  • Easy access to low cost D series mutual funds
  • Frustrating they log u off if you are inactive just a few minutes
  • Wide selection of GIC’s
  • Big list of companies that DRIP
  • Good margin rates


The website is pretty intuitive and easy to use from my point of view. It originally was old school but it is evolving into web 2.0. It still has some progress to make but it’s moving in the right direction. The improvements are around the information displayed such as performance or the details on an account.

The experience is similar to the other brokers I have used which include Scotia iTrade, e*Trade US, and Scotia McLeod (prior to Scotia iTrade). I tend to trade with a limit for buy and sell orders so I don’t need much. The trade settlement timeline is pretty much the same as what I had with Scotia iTrade and e*Trade; it approximate to 3 days.

RBC offers a practice account so it’s really easy to actually see for yourself if it works for you.

Comments by Readers

  • Easy access
  • Easy to use
  • Always improving the website
  • Clunky site navigation (would be interesting to know more on this comment)
  • Web site design and tools just so-so
  • Slow to access in active trading periods
  • Delay on quotes

Performance Monitoring

RBC Direct Investing has performance reporting which was new to me after moving from Scotia iTrade. The recent web site improvements shows the trailing 12 month performance on each of the account. It’s a nice addition and what you would expect with web 2.0 🙂

Otherwise, there is a performance tab section allowing you to see your portfolio by quarters or annually and compare it with an index. Below is what it looks like.

RBC Direct Investing - Performance

The asset allocation and model portfolio are a nice touch but it’s mostly setup towards mutual funds investor. There is good education section for new investors to get started. I thought it was good to teach about the tools but it’s catered to lead you towards RBC mutual funds.

RBC Direct Investing - Tools

Comments by Readers

  • Could improve analytics
  • Watch lists and practice accounts are great for testing ideas and comparing results to indexes
  • Poor features for displaying performance

Investment Research

The research is mostly focused on economic data and that’s not really my cup of tea. Scotia iTrade had some nice reports with their ratings and recommendation that I liked. RBC happens to have something similar that I can access daily but the format is quite hard to read from an at a glance perspective. I have also seen the TD Waterhouse reports and they are in line with Scotia iTrade. I would love to have the equivalent of the competitors but I knew that going in. I’ll have to live with it. I would say the research is not on par with TD Direct Investing or Scotia iTrade.

The alert system works quite well but it takes a bit of fiddling to get it right. I only follow two stocks at the moment with the alerts; MSFT and CNR. I sort of getting spammed by the MSFT notification and I need to adjust that a little. I can get up to 7 emails in one day. Imagine having 100 stocks in the list …

I was expecting RBC Direct Investing research and analysis but they are all external research from Standard & Poor. It’s acceptable for US companies with their 5-star ratings but it’s not as good as Canadian companies.

RBC Direct Investing - Research

Comments by Readers

  • Good investment research
  • Extremely poor research materials. The little available is USELESS
  • Could provide more analysis
  • Research and info readily available

Customer Service

I was very pleased with the customer service. I live in the computer age so I try to do everything on the web through email and only call as a last resort. They answered all my questions with detailed information for me to proceed with different tasks. The secured email service works really well and I use it from time to time. It takes at least 24 hours to get an answer so if you have an urgent request, it’s better to call.

I happen to also open an RESP account as I am moving it away from the mutual funds where it currently is and they were helpful in filling out the forms as well. They even called me to walk me through some information I had missing.

Comments by Readers

  • Secure email for questions/issues
  • Great customer service through their Royal Circle Benefits
  • Hours are limited e.g. not open late in evening

RBC Direct Investing

My experience with RBC Direct Investing has been great between transferring my holdings and making transactions in CAD and US dollars.

The transfer from another discount broker was just simply easy. I got all the shares transferred in kind by filling the forms. I kept them up-to-date through the secure messaging system on their website of all the dividends I was receiving at the time and they responded quickly. Three times in fact. I had to pay fees to transfer a couple of accounts and RBC Direct Investing kindly refunded me back the fees simply by faxing them the monthly statement.

During the transfer, some of the book values or ACB (Adjusted Cost Basis) weren’t transferred and I was able to let them know of my original ACB for performance tracking. It was really nice to be able to do that as I can rely on the data for my performance tracking.


25 Responses to "RBC Direct Investing Review"

  1. It would be nice if you had a share link or something like that so I could email your articles to some investing friends. Thank you.

  2. Sounds like a great brokerage platform overall. I use TD Waterhouse and I see they have a lot of similarities. Not sure what others mean by trade execution, but I’ve been able to buy and sell stocks in lots under 100 and the trade usually goes through instantly.

  3. With the number of choices available, choosing a broker can be tough. Smart Money magazine and Barron’s provide annual reviews of brokers and provide their rankings of the top discount brokers. You should review several brokers based on the costs and features that are important for your investing style and goals..

    1. The Passive Income Earner · Edit

      You hit on a very good point -> “The features that are important to you”.

      I have a post coming that highlights my filter as a dividend investor. Stay tuned.

  4. When I transferred out of Scotia iTrade they charged me transfer fees AND a fee to close my account, and they “forgot” to transfer three dividend payments.

    I absolutely hated the platforms.

    I thought they were somewhat less then ethical in their dealings when they purchased my old brokerage (TradeFreedom) and transferred it to them.

    1. The Passive Income Earner · Edit

      I have actually become unsatisfied with Scotia in general. They appear to attempt to keep up but it seems they are always behind …

  5. I currently use CIBC Investor’s Edge and before reading this article was going to switch to RBC since it is my main banking institution.
    Thanks for the review!

  6. I use BMO Investorline and Canadian Shareowner. They are both good. Canadian Shareowner uses a full drip investing with shares to 4 decimal points and also is dollar based for purchases which means you never have to worry about having large amounts of money accumulated before making a purchase.

    1. The Passive Income Earner · Edit


      Thanks for commenting. I had a quick look at Canadian Shareowner, would you mind elaborating on how you are using it?

  7. I am using it as a regular account. I have an RRSP account and accounts for my children to introduce them to investing. I like the service because, there are no share certificates to keep track of and also a single investment statement instead of one for each company. I hold all of my US investments that I have in my RRSP account in the Canadian Shareowner account because they offer dividend reinvestment on all dividends and issue shares to four decimal points. You can use it as a regular broker and place “immediate trades”, but the commission for that is 29.00 I think. Mostly, I use the co-operative trading feature. Each of their pre-screened investments trades on a certain day of the month or week. You book a set dollar amount to trade in any number of stocks for the coming month for a total commission of $40. You could buy 12 stocks for a total of $1500. You can book individual trades for 9.95 and they still trade on the desiginated day for that security. They also produce a monthly magazine and stock selection software to analize investments. I have used the account for about 15 years and I would rate it as excellent.

  8. Great post.
    Is it possible to transfer fund into RBC direct invest account from a bank account of other banks?
    RBC bank account all have fees, even you keep a balance. Just wondering how you get bank account free.

  9. If you are trading options, this is one of the worse platforms you can use to trade. I recently joined RBC DI, stock trading is OK. Not great. It still feels like I am using a 1998 web page. My biggest problem with this platform is that you cannot place a stop loss order on options. Add to that the 20 minute delay and the slow order processing and what you have is a perfect formula to loose all your money. It is impossible to keep up with the options price (up or down) and it seems I am always pricing myself out of the market. I had to modify my order at least 15 times before I finally got my order filled. When that happened the price had fallen more than 50% when I could have stopped my loses at 20%. THIS IS UNFORGIVABLE for a company that claims to be conservative.

  10. I’ve been with RBC Direct Investing now for just over 4 years and my experience has been quite mixed. As Carlos infers, the website is extremely outdated but I have not had any trouble with real time quotes for equities, preferred shares, debentures or options. My major complaints are with the DRIP options (only market DRIP available and no option to enroll by individual security) and with the customer service. An error was committed by an investment representative in my account that has so far required more than 5 phone calls to fix – additional mistakes were made by RBC in trying to fix the error (a foreign exchange was made in the incorrect account, interest charged for RBC’s mistake, instructions not followed, phone calls not returned, treated disrespectfully, etc.). Working in the industry and having worked in a similar role with a competitor out of university, my customer service experience has been a nightmare. I would suggest avoiding RBC DI if at all possible – I will be transferring my account out.

  11. I have just moved my investments over to RBC Direct Investing from RBC Bank and after less than 2 weeks I will be transferring my account out! I am incredibly dissatisfied with their poor customer service, very lengthy wait time for phone inquiries (over 45 minutes hold on average) and slow order processing time (3 days for mutual funds). RBC Direct Investing is a huge disappointment!

  12. My sister has her accounts with RBC and overall no problems. She does not trade, we just bought 8 company shares for her RRIF, TFSA and Non reg account. Two items I’d like changed:
    1. Would like the Activity to include the running balance
    2. Wish they would provide Full Dividend reinvestment. She ends up with cash in the accounts un-used.

  13. I find RBC Direct Investing to be good for trades, average or below for performance tracking and bad for dividend income tracking. Dividends just end up as a change in your cash account with no info and you have to go through the clumsy transaction history to see what you got and when. As far as I can see there is no posting or history of dividends listed in ‘My Portfolio Holdings’ or any where else. It could also be listed in a part of the ‘Performance’ page.
    I find the only reliable, long term performance and dividend tracking on Globeinvestorgold.com. (Unfortunately they have recently jacked their subscription rate by about 100% to over $20/month, still worth it to me. The real problem is they have closed the site to new subscribers which is not a good sign for longevity of that service. G&M tried to close out ‘…gold’ a few years ago and it appeared to me that the backlash was so great they decided to keep it going. The latest announcement to existing subscribers sounds like they are trying to shut it down again. Their alternative Globe Investor service is a more modern interface that takes a big step back on useful info.) I digress…..
    Is there any good DIY site for tracking historic performance and dividends?

    1. @Robert

      Thanks for your comments. I still track everything on my own. It’s as is most people working on discount broker interfaces don’t invest and don’t have the experience … It takes into account taxes but that’s about it.

  14. Does RBC DI give any sort of running dividends total like Scotia iTrade does (by 45-day, 3-mo, 1-yr, previous year, and year to date)? BMO does not and it’s a huge disappointment. Why can’t these guys all provide some of these “basic” services?

    1. @Mani
      RBC DI doesn’t. It takes time to evolve the software and too many investors have different needs. They all have to chose their bet.
      I do think they do not innovate as much as the independent discount brokers though.


Post Comment