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With a RBC Direct Investing investment account for your non-registered
investing and trading needs, you can hold a diversified portfolio
of investments - including cash, Guaranteed Investment Certificates,
money market instruments, stocks, bonds and mutual funds.
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Cash Investment Account |
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Margin Investment Account |
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If you plan to borrow on
margin for your investments, you can choose a RBC Direct Investing
Margin Account. |
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If you are an experienced investor, you can open an Option
Account, which will give you access to options
trading and the benefits of both a Cash Account and a Margin
Account.
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Use
our convenient online form to transfer assets from your non-registered
investment account(s) at another institution to RBC Direct Investing. Learn More |
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Cash Investment Account
With your RBC Direct Investing investment account, you can:
- Choose from a wide array of investment
alternatives.
- Have quick access to the Toronto, Montreal,
Alberta, Vancouver, New York and American Stock Exchanges,
as well as Canadian and U.S. over-the-counter markets.
- Have your portfolio of securities in
one convenient place.
- Designate someone to place orders on
your behalf, if you wish.
Uninvested cash balances in your RBC Direct Investing account earn
interest, paid monthly, based on the average daily balances
in your account for the month.
Margin Investment Account
When you qualify for a Margin Account, we will lend you
a portion of the market value of your eligible securities.
We offer competitive interest rates on Margin Account loans.
A Margin Account can also allow you to free up funds that
would otherwise be used for your investments. Excess margin
can quickly and easily be transferred to your RBC Royal Bank
account. The margin-eligible securities in your RBC Direct Investing
account would be used as collateral for the loan.
The outstanding loan value is initially determined using
the purchase price of the security. However, from that point
on, the outstanding loan value is generally based on the
previous day's closing bid price for Canadian equities and
the bid or last trade of the previous day for U.S. equities.
The difference between your present loan value per security
and the original loan value per security vs. your debt, represents
your Margin Call or Margin Excess position. If the loan value
per security, based on present market price, is less than
the loan value per security extended to you when you purchased
the stock, (i.e. the stock price has dropped), your account
is undermargined, unless you have other marginable securities
to offset all of the undermargined position.
Similarly, if the loan value per security is more now than
at purchase, your account has excess margin.
Here are examples of some of the eligible securities and
the applicable margin:
Security
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Margin
Required
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Long
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Short
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Cdn
Eligible for Reduced Margin
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CDN Eligible For
Reduced Margin
(Contact RBC Direct Investing for details) |
30% |
150% |
All other eligible
CDN Securities
($5.00 and over) |
50% |
150% |
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U.S.
Eligible for Reduced Margin
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| S&P 500 Index |
30% |
150% |
| All other eligible
US Securities |
50% |
150% |
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Other
Securities
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| $5.00 and over |
50% |
150% |
| $3.00 to $4.99 |
75% |
175% |
| $2.99 and under |
100% |
Not
eligible |
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Rights
and Warrants
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| $5.00 and over |
50% |
150% |
| $3.00 to $4.99 |
75% |
175% |
| $2.99 and under |
100% |
Not
eligible |
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iUNITS S&P/TSX Composite
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40% |
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MUTUAL FUNDS
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50% |
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Debt
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| Coupon
Bonds |
21%
of market |
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Corporate Bonds
or Debenture
(not convertible or in default) |
20% |
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| Municipal Bonds |
20% |
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| GICs |
20% |
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| Provincial Bonds |
10% |
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| Corporate Paper |
10% |
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| Government of Canada
Bonds |
7% |
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| U.S. Government
Bonds |
7% |
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| Guaranteed Mortgage
Backed Securities |
7% |
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| Government of Canada
Treasury Bills |
3% |
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Securities must be held within your RBC Direct Investing account
in order to qualify for the above requirements.
Please note: The above margin rates
are to be used as a guideline only and are subject to
change without prior notice. It is our policy that equities
traded on the Canadian Venture Exchange and NASDAQ Bulletin
Board are not eligible for margin. In addition, other
securities may be deemed not eligible. Please contact
an investment services representative for further details. |
Open a Margin Account
Download a Margin Agreement Form and an Update/Change of Client Information Form. Once you
have completed and signed both forms, simply drop them off at
any RBC Royal Bank branch or mail them to RBC Direct Investing. Please
note: A Margin Account works in conjunction with a RBC Direct Investing
Cash Account. If you currently do not have a RBC Direct Investing
Cash Account please complete an Investment
Account Application. Due to regulatory policy, RBC Direct Investing
does not open accounts for non-residents of Canada.
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Make the right move and start enjoying the speed, security and reliability of RBC Direct Investing. |
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