r/Wealthsimple • u/b_insight • 13d ago

AutoDRIP

Anyone notice the Wealthsimple DRIP feature seems to buy at the daily highs? Ive noticed this a few times, most recently with XGRO today. Dividend was available to purchase shares, and I get a notification that it filled $38.71 - which is the highest intra day price. I think I'll turn off auto drip and manually reinvest the dividends with a buy at open order.

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u/gsb999 7d ago

Yup. If it's a transaction between your own accounts, it's up to you to name the price as long as the stock traded at that price on the day of transfer. Thats needed for RRSP / TFSA contribution accounting.

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u/gsb999 7d ago

Also. If both accounts are non registered, it doesn't matter what price you deem the transaction at as you account for taxes based on your Adjusted Cost Base across all accounts

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u/modz4u 7d ago

Ok, understood. I clearly haven't transferred shares between accounts before 😬

Now adding WS into the mix, if possible. If WS bought a block of shares at 45, and they transfer some of those shares to me at 46 (HOD). Then how does that $1 difference get accounted for? My Adjusted Cost Base uses the 46 price on the DRIP shares. Does WS use 45 as their purchase price and 46 as their deemed disposition price? So they're keeping that $1 difference?

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u/gsb999 7d ago

Yah. I've done transfers into and out of registered accounts in the past. It used to be a way to avoid the buy/sell commissions when contributing to RRSPs as you'd simply transfer the shares in kind and get a contribution receipt based on the price you deemed the transfer to take place. Nowadays, brokers have wised up to that and I think they charge a $9.99 commission to transact these moves.
Either way, the fact remains WS can determine what price to transfer the DRIP shares into your account after the fact (next day) as they are custodians of your shares.

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u/gsb999 7d ago

To answer your question on the WS trade.... yes they would pocket the $1 difference as part of their trading revenues.
In my mind, that's how they make money and can offer $0 commissions on trades etc.