Brokerage Problems, Thursday resend

Thu, 2017/08/10 - 5:37pm | Your editor
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I have finally extricated myself from the clutches of Fidelity which will send the proceeds from the forced sale of my holding in iShares Floating Rate C$ ETF, XFR-Toronto, to my new Schwab account. I will cease coverage of this holding as it is not legal for US folks to own it without filing an onerous Passive Foreign Investment Company report. It was because of this that I could not transfer my holding to any brokerage account and while Fidelity offered to issue me with a share certificate for a mere $100 it would not have avoided the PFIC issue.

My readers told me about other issues with this brokerage. One who had been with Fidelity for ages found that he was being denied the ability to pick which stocks were being sold to minimize taxes. All trades were being done first-in-first out (to avoid short-term gains or losses, in theory better for taxpayers). For capital gains tax reasons however, he wanted sometimes to have the trades done last-in-first-out but could not get the brokerage to do this.

A sophisticated investor who holds Hong Kong shares in a Fidelity account found that the daily prices from when Hong Kong is open did not port to his account after the close, so he could not value his portfolio during normal US waking hours, in the same time zone as I am in. I advised both readers to write to Abigail Johnson who heads the firm. If any other paid subscriber needs to do this I will provide her email and snail mail address, which I have because the company used to subscribe to my newsletter


Meanwhile my own global investing account while in existence does not yet show my non-Canadian F share positions, so I also have problems spotting what I have to look into during my waking hours. This Schwab move also creates a problem with a stock I watch closely discussed below.


Today beside the XFR matter I had to cover lots of news so the blog is late.


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