Peeter Joot's (OLD) Blog.

Math, physics, perl, and programming obscurity.

Scotiabank iTrade RESP … they are sneaky little buggers with their hidden fees.

Posted by peeterjoot on August 21, 2012

Watch out if you are considering opening a Scotiabank iTrade RESP account.  I got the email below from Scotiabank where I currently have a very minimal RESP account.  I’d opened this account with the intention of increasing it, assuming I’d eventually have the funds to do so, but will now likely close it out of principle and look elsewhere:

“As a valued Scotia iTRADE® client, your continued satisfaction is important to us.
That’s why we’re writing to you today to remind you that your combined assets with Scotia iTRADE need to reach certain levels as of August 31st, 2012 for you to avoid an annual fee charged to your registered account(s) on September 15th, 2012 (covering a one year period to September 14th, 2013).
Here is the breakdown for meeting asset levels to avoid the fee:
• If you hold an RESP account with Scotia iTRADE, you need to have $15,000 or greater in combined assets with Scotia iTRADE to avoid a $25 annual fee (plus HST) charged to your RESP account(s) on September 15th.
• For registered accounts, other than RESP accounts, you need to have $25,000 or greater in combined assets with Scotia iTRADE to avoid a $100 annual fee (plus HST) charged to your registered account(s) on September 15th.
With our powerful trading platforms, easy-to-use trading and investment tools, and friendly customer service, consolidating more of your assets with Scotia iTRADE is a wise decision.
We appreciate your business and will continue to offer you robust investment solutions to help you achieve your investment needs.”

Somewhere in the fine print of the Scotia iTrade agreement must be some statement of fees for less than this minimum “$15,000”.  When I read the fine print, I saw the fees schedule for the per trade fees, but not this one.

I can summarize this email from Scotiabank, “As a valued iTrade customer, we will charge you fees that will encourage you to look into our competitors banking products.”

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5 Responses to “Scotiabank iTrade RESP … they are sneaky little buggers with their hidden fees.”

  1. Brad said

    Yes, I’m pulling out now, and no, they never ever mentioned these charges anywhere. Also, now they want to charge me for closing out my TFSA

  2. Joe said

    I agree itrade has been ripping me off for 13 years. They are using the dividends paid out by some shares I had acquired when my Life Insurance company demutualized to pay themselves $200, bucks a year. They hide this with the entry “Unclaimed Account Fee”. I never agreed or signed off on this. If there are any other people in the same position write a letter to their auditors, sciconfirm@kpmg.ca – let them know what’s going on – i did!

    Joe

    • Dan Berty said

      Joe, Where did you land on this? I’m going through exactly the same thing now. It has been a horrible experience. I was never notified when the took the account from E-Trade and claim the terms were grandfathered by when I agreed to the terms with Sun Life Securities. To date, they have taken $800 dollars.

  3. Irene said

    The Unclaimed Account Fee is charged on a per account basis each calendar quarter for all accounts (i) that are not fully activated, or (ii) in respect of which Scotia iTRADE does not have a valid and current mailing address on file. This fee will be assessed at the close of business on each of March 15, June 15, September 15 and December 15 of each year.

    I am validating my address to see if it stops today

  4. Ken said

    Scotia itrade is a rip-off. !! I have a 1000 shares to sell but they tell me the market maker (c’mon Scotia bank, the Market maker is a computer) can only sell them in 100 share allotments. They sold 200 shares in one day, but in two separate transactions which cost me $9.99 per transaction or 9 cents a share.Scotia itrade are a bunch of scumbags .

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