I’ve written a guide on the differences between investing in TD e-Series funds through a TD Mutual Fund Account and a TD Direct Investment Account. I’ve also written how to buy and rebalance your e-Series funds through the TD Mutual Fund Account. Now let’s look at how to buy TD e-Series Index Funds through TD Direct Investment accounts.
Before you start
Before you can start trading using TD Direct Investment, you’ll need to setup some accounts. This can be done online or in person by setting up a meeting with a TD Direct Investment rep from your local bank. If you already have a portfolio within a TD Mutual Fund account, see my guide on switching from TD Mutual Fund to TD Direct Investment.
I suggest opening a Tax-Free Savings account and/or a Self-Directed RSP account for your investments, which are both available in the TD online application.
To access the TD Direct Investment portal, you login to your TD EasyWeb account with your access card code, the same as you would for any of your day-to-day banking.
Find your investments
Once logged in, on your main overview page, scroll to your investments section, and click on any of the “WebBroker links. This will take you to the TD Direct Investment portal.
Find your right account
Now click on the account that you want to make TD e-Series purchases in. NOTE: You’ll need to have cash funds in that account to make any purchases.
Purchase your TD e-Series funds
Select the “Buy/Sell” icon at the top of the page
Select the “Mutual Funds” tab of the buy window. You’ll need to make sure you have funds available to trade (shown as Cash in the top right corner of the buy window. You’ll also need to fill in the following fields:
Like in a TD Mutual Fund Account, you can Buy, Sell or Switch. If you are buying funds, select the “Buy” option.
Search and select the symbol name for the TD e-Series fund that you want to purchase. They should show up as you start to type them in. If you are using the Canadian Couch Potato strategy for your e-Series funds, here are the Symbols:
- TDB900 – TD Canadian Index Fund-e
- TDB902 – TD U.S. Index Fund-e
- TDB909 – TD Canadian Bond Index Fund-e
- TDB911 – TD International Index Fund-e
Allows you to choose to buy in dollars, or in amount of units. I always choose dollars to make sure I know exactly how much I’m buying.
You can select to either have your dividends re-invested, or payed out in cash into the same account. I recommend re-investing the dividends – you can always cash them out later.
Amount (including commission)
You’ll need to check this box. Don’t let the word commission scare you – there are no commissions when purchasing TD e-Series funds.
You’ll need to fill in a Trading password (this option can be turned off in your settings). If you didn’t receive one when you opened the accounts (I didn’t), you’ll have to call into the TD Direct Investment phone line and get them to assign you a temporary one.
Select the “Preview Order” button on the bottom right to continue.
Make sure to confirm all of your details in this window. The preview screen also shows that you will be charged $0 for your commission, and provides some additional warnings about minimum holding periods, and long term fees charged by TD Direct Investing – the usual fee’s associated with holding the investment. Select the “Agree & Send Order” button to finalize your purchase.
You will now be given a confirmation page that your order was received, with the details and a reference number. Your purchase is now complete.
You’re order will be placed at the end of the current trading day, or at the end of the next trading day if the markets are already closed.
Start your TD e-Series portfolio
You can now repeat that process for all of the funds you want to include in your TD e-Series portfolio. A pretty simple process, but it’s always nice to have it laid out step by step with pictures. Was this article helpful? Let me know in the comments below!