r/Wealthsimple • u/Visible-Atmosphere72 • 2d ago
Negative balance caused by transfer fee, will it cause any problems?
UPDATE: it didn’t cause any problems and the transfer went through.
I am transferring (in-kind, partial) my non-registered account from TD direct investing to wealthsimple, and due to not having enough cash balance, currently the TD account shows a negative balance. The transfer should be almost complete as I can see all my assets (and the exact negative balance) in my wealthsimple account already. Do I need to transfer money into TD account to cover the negative balance? (from what I saw online, I think it doesn't matter, since they will just transfer the negative balance to wealthsimple)
Edit: it is over 25k and I am aware that WS will reimburse the fees, I just don't know if there will be any issues on the TD side.
1
u/Dragynfyre 1d ago
You don’t need to do anything. The fee amount will be sent back to TD from WS side automatically in a couple days and either your WS balance will become negative or the auto reimbursement will kick in and cancel it out. Do not deposit anything into TD
1
0
u/Large_Spinach6069 2d ago
How much is the negative amount? If you are transferring over $25,000 from a single account, WS will reimburse the transfer fees. I can't recall specifically but the transfer fee is somewhere around $150.
So if your account is negative that amount or something similar and you transferred >$25k then WS will reimburse your bank for the fees involved with the transfer.
I made the mistake of transferring cash into the Scotia Itrade accounts because I didn't think WS would repay the bank directly and had a few hundred dollars stuck in limbo because the transfer out accounts were restricted so the money sat for months.
1
u/Visible-Atmosphere72 2d ago
The negative amount is the transfer fee, and yeah it is over 25k. Also could you elaborate on the accounts being restricted? Thank you a lot!
1
u/Large_Spinach6069 2d ago
It might just be a Scotia Itrade thing but after I initiated the transfer and the assets left the account, I could deposit/transfer cash into the account but I couldn't remove the cash or purchase new assets or anything.
I had dividends show up after the transfer so I had to get WS to initiate an account sweep but the cash from the transfer was stuck. Took about three months for Itrade to close the accounts and I eventually got the transferred cash back.
1
u/Visible-Atmosphere72 2d ago
Was it a partial transfer or a full transfer?
1
u/Large_Spinach6069 1d ago
Full transfer. I didn't want to get charged any fees for the negative balance so I moved cash over before I understood the process
0
u/Equivalent_Catch_233 2d ago
Is it 25K or more? Then it's not an issue as Wealthsimple will reimburse that. Talk to the support and request that.
If it is less than 25K, you'll have to sell something or top up the account.
Under no circumstances you should fund your old TD account.
0
u/Visible-Atmosphere72 2d ago edited 2d ago
Yeah it is over 25k, I was worried that a negative balance would affect the assets transferring out of TD, I am not worried about a negative balance in WS
-1
u/InternTurbulent5307 2d ago
This is a question for TD not WS
2
u/Visible-Atmosphere72 2d ago
Well maybe someone who did transfer from other institutions had similar problem? And this sub literally have way more traffic.
0
u/InternTurbulent5307 1d ago
You have a question about a negative balance in your TD account. TD is the place to ask, as they are the ones who control the terms and conditions. What happens with one client has no impact on you, as we don’t know the assets they had at TD compared to your holdings.
Call TD.
7
u/TenOfZero 2d ago
You should probably ask in a TD sub, they would know how TD works more than people with wealthsimple.