Investing Series: How to sign up for TD Canada Trust E-Series Mutual Funds

This is a part of the Investing Series.

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This is the easiest, most hassle-free way I have found to sign up for TD Canada Trust E-Series Mutual Funds (the cheapest way you can invest in index mutual funds with a bank in Canada).

The list for TD Canada Trust Mutual Fund Cheaper E-Series (lower MERs, mostly index funds)

If you want to sign up for their cheap e-series TD Canada Trust Mutual Fund, I suggest you do the following for a no-hassle experience:

• You do not need to be a TD Waterhouse customer to buy e-series mutual funds!!
• Become a customer of TD Canada Trust (EasyWeb)
• Get a FREE no-fee savings account with them (no minimum balance required)
• Deposit money in there from your external bank account with a cheque & link the two accounts
• Open a TD Mutual Funds account (RRSP, TFSA, or Non-Registered)
• Ignore their pleas to buy their high MER, low return Mutual Funds
• Put all your money into your no-fee savings account with them so you’re ready to buy…
• ..or alternatively, you can also put that money into a Mutual Fund Bond Index or something you can sell easily without any additional fees (some funds, will charge you a 2% penalty fee if you sell within 30 days, e-series charges you a 2% penalty fee if you sell within 90 days)
• Convert that TD Mutual Funds account into an e-series Mutual Funds account with this form
• Note: Here’s a link that has all the TD Canada Trust forms in one shot
• Print and bring in the form(s) you’ve filled out and signed to your local TD Canada Trust Customer Rep
• Go to the Service Desk; you do NOT need an appointment with a Mutual Funds Advisor!
• Ask them to forward (internally) those forms to the address listed in the upper right-hand corner
• Repeat that it really is all they have to do, and nothing more than forward those forms
• You will need to fill out ONE form per Mutual Fund Account
• You can use the above form for all Mutual Funds (I did it for RRSPs and Non-Registered)
• Wait for the confirmation e-mail that welcomes you to the world of TD Mutual Funds E-Series

Enjoy.

The list for TD Canada Trust Mutual Fund Cheaper E-Series (lower MERs, mostly index funds)

… BUT I STILL RECOMMEND GOING WITH QUESTRADE & BUYING VANGUARD ETFS

I still recommend that people who want to save more money because management expense ratios (MERs) take a chunk out of your portfolio over the long-term, go with Questrade and buy Vanguard Canada ETFs.

• Use Questrade code: o0soehds and get $50 in free trades

This is what I have personally done with my portfolio.

Only ONE account has stayed with TD Canada Trust because I can’t really move it (it’s a locked-in RRSP account).

But even so, TD Canada Trust E-Series is not a bad alternative if you are less sure of yourself as an investor and/or lazy and don’t want to deal with Questrade and having to learn how to buy and sell ETFs.

OTHER POSSIBLY HELPFUL READING:

• How and where do I get started to get into investing in Canada?
• What is a mutual fund?
• What is the difference between a mutual fund and an exchange-traded fund?
• How to invest in index funds
• How do I set up an index fund portfolio?
• Comparing TD Canada Trust E-Series to Vanguard Canada (traded on Questrade)
• How and when does TD Canada Trust charge its Management Expense Ratios?
• How to convert a TD Canada Trust Mutual Funds Account to an E-Series Mutual Fund Account
• How to move your RRSP from TD Canada Trust to Questrade to buy ETFs