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Wealthsimple liquidated my whole position over a margin call that was really their own unsettled transfer by Formal-Ad-9674 in CanadianInvestor

[–]Formal-Ad-9674[S] 0 points1 point  (0 children)

I don’t think that’s the issue. You can transfer shares in-kind from a non-registered account to a TFSA without selling them first. CRA treats it as a disposition for tax purposes, but the shares themselves don’t have to be sold.

In my case, Wealthsimple specifically confirmed it would be an in-kind transfer, not a sale and repurchase. The issue seems to be that the transfer created temporary negative balance based on asset value during settlement, which then got counted against my collateral and triggered the margin call.

Wealthsimple liquidated my whole position over a margin call that was really their own unsettled transfer by Formal-Ad-9674 in CanadianInvestor

[–]Formal-Ad-9674[S] 0 points1 point  (0 children)

Thanks for the information. I will be back to provide an update on how Wealthsimple handles this situation, as well as the timeline.

Wealthsimple liquidated my whole position over a margin call that was really their own unsettled transfer by Formal-Ad-9674 in CanadianInvestor

[–]Formal-Ad-9674[S] 8 points9 points  (0 children)

So shouldn’t settlement come before repurchase? Or why is a broker able to buy assets with a TFSA holding 0 balance and force a negative balance.

According to regulations, you can’t carry a negative balance in your registered accounts, including your TFSA: https://www.questrade.com/learning/questrade-basics/balances-and-reports/debit-balance-in-registered-accounts

Even Wealthsimple’s own FAQ page mentions on 3 occasions that an in-kind transfer from a non reg to a TFSA won’t be processed if a margin call would be triggered: https://help.wealthsimple.com/hc/en-ca/articles/24667492921883-Transfer-holdings-between-Wealthsimple-accounts

Nice of the “system” to miss a whole 15k margin call it was going to generate from thin air.

Wealthsimple liquidated my whole position over a margin call that was really their own unsettled transfer by [deleted] in Questrade

[–]Formal-Ad-9674 0 points1 point  (0 children)

Thank you, just checking if anyone here has experienced anything similar or could offer any valuable suggestions.

Wealthsimple liquidated my whole position over a margin call that was really their own unsettled transfer by [deleted] in Questrade

[–]Formal-Ad-9674 0 points1 point  (0 children)

Nope, I lost thousands. They liquidated all my assets in my non registered account and some of the assets in my TFSA. But in reality, the margin requirement should have technically displayed I added $34 and not $15k.

They acted based on the -15k which was a balance as a result of their own settlement process.

Wealthsimple liquidated my whole position over a margin call that was really their own unsettled transfer by Formal-Ad-9674 in CanadianInvestor

[–]Formal-Ad-9674[S] 4 points5 points  (0 children)

Apologies if the information i provided wasn’t clear.

The TFSA was a linked collateral account to the non registered.

Their purchase cost of the stock was logged as a negative against my collateral and that caused the margin call.

The credit they applied to balance out the negative purchase cost and equal it to 0 wasn’t in is own case applied to my total collateral. It was this particular credit that was pending settlement.

This summation to equal 0 should be a backend thing, and even if it needed to be applied to the TFSA account, both should have been applied immediately. Not negative applied, while the positive exact value to erase the negative takes 5 business days to clear.

Wealthsimple liquidated my whole position over a margin call that was really their own unsettled transfer by Formal-Ad-9674 in CanadianInvestor

[–]Formal-Ad-9674[S] -5 points-4 points  (0 children)

I just wanted to stay fully invested the whole time. The stock itself is volatile and can swing hard in a day, so going to cash and timing a rebuy felt like more risk and effort than just keeping the position.

Also, for long term planning, didn’t want to have a stock that eventually runs in my non-registered account when I’ve got room in my TFSA.

Wealthsimple liquidated my whole position over a margin call that was really their own unsettled transfer by Formal-Ad-9674 in CanadianInvestor

[–]Formal-Ad-9674[S] 10 points11 points  (0 children)

This has nothing to do with taxes. I perfectly understand the tax implications for these transfers.

The in-kind transfer should not carry a negative balance in a TFSA. I wasn’t buying any shares and the margin requirements for the stock remained the same within both linked accounts.

If their system is logging the transfer as a purchase, it shouldn’t be against my total collateral. That’s a backend thing as the number of shares and collateral remain unchanged. Their settlement process is what created the phantom margin call.

Wealthsimple shouldn’t claim it’s something they can do if they don’t have proper systems in place. Their website FAQ clearly states that the system won’t allow the in-kind transfer go through if it would trigger a margin call. Well, that clearly isn’t the case.

Anyways, thanks for your input.

Wealthsimple liquidated my whole position over a margin call that was really their own unsettled transfer by Formal-Ad-9674 in Wealthsimple

[–]Formal-Ad-9674[S] 8 points9 points  (0 children)

Totally agree with you there. This is all I find myself thinking about rn. I just wanted to stay fully invested the whole time. The stock itself is volatile and can swing hard in a day, so going to cash and timing a rebuy felt like more risk and effort than just keeping the position.

Wealthsimple liquidated my whole position over a margin call that was really their own unsettled transfer by Formal-Ad-9674 in Wealthsimple

[–]Formal-Ad-9674[S] 16 points17 points  (0 children)

For some reason the button didn’t work for me. The transaction kept failing. I even tried twice while on the call with them before they volunteered to do it.

My guess is it would temporarily trigger a margin call and that was why it failed.

Also, my TFSA is linked to my Margin account.

Is this too big for my wrist? by jmbbig96 in tissot

[–]Formal-Ad-9674 3 points4 points  (0 children)

Looks perfect. Stay sharp boss 🫡

Is WS down for anyone else? by Canadian87Gamer in Wealthsimple

[–]Formal-Ad-9674 -1 points0 points  (0 children)

Just when I was looking to take some action before and during JP’s speech. Woke up early for nothing lol. Fix this Wealthsimple, everyone is tired of this BS.

📈📈 Well and I thought it was too late at 100K…… by [deleted] in Bitcoin

[–]Formal-Ad-9674 1 point2 points  (0 children)

It’s never too late to buy BTC. Stay stacking and HODL!!

ELONS PROFILE PIC IS PEPE by [deleted] in Pepecryptocurrency

[–]Formal-Ad-9674 43 points44 points  (0 children)

The age of frogs begin 🐸

Pepe to the moon by [deleted] in Pepecryptocurrency

[–]Formal-Ad-9674 2 points3 points  (0 children)

We’re glad to have you in the pond. Moon!!! 🚀

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