Bank of Nova Scotia T.BNS

Itrade accounts insured? or is it considered a bank account?

[frances1]

If you have money in Scotia itrade is the money availble to Scotiabank with the new bail in laws? 

I sent an email this week and itrade did not respond...so if we have a run on the banks the cdic will insure your funds to 100k and after that your money can support the bank if needed....my question is simple, most folks have more money in their itrade accounts with rrsp's and tfsa's etc....if you have over 100k in those accounts and if they use the bail in law during a crisis...can they take your money? 

I cant find the answer to this...love to have someone share info on this.

[Goldluck]

Never keep all your eggs in 1 basket.  Spread your money throughout multiple financial institutions.

[TickerTwit]

I have seen statements that (1) brokerage accounts are not subject to bail-in and (2) common shares are not subject to bail-in. I would guess (1) to be true because the broker is normally a trustee. But (2) is of little help because the common shares of a failed bank are unlikely to have any value, and even if they did, bail-in will dilute them to a homeopath's wet dream. These might be

[frances1]

Thanks for posting that...hard to believe the banks can privatize the gains yet sociallize the losses..just need to know the rules to protect oneself I guess

[Tonyde]

I agree with TT. Keep in mind that iTrade is a separate entity, so is Tangerine!! Worst case scenario the brokerage will be sold. When E*Trade Canada seized operations in Canada, the brokerage was sold to Scotia (and it went down hill from then).