TD Direct Investing
Outbound link — no affiliate relationship.
Asset-segregation composite governed by the weaker axis — (segregation × ) = 7.3, (custody tier) = 10.0. Dimension score = 7.3.
Capped at 7.0/10 — no negative-balance protection (jurisdiction not mandating it).
No (jurisdiction not mandating it). Withdrawal Integrity is capped at 7.0/10 regardless of other withdrawal performance (it would otherwise be 8.5). Approximate composite impact: −1.9 points.
TD Direct Investing scores 85/100 (Excellent) — Canada's largest self-directed brokerage by assets, with C$749B+ AUA under TD Bank Group. Primary driver is D4 Financial Strength (10.0/10): TD Bank Group is a Big Six Canadian bank, NYSE- and TSX-listed, CET1 14.7%, with 40 years of continuous operation as a self-directed platform. The two largest drags are D5 and D3. D5 is capped by the NBP ceiling — Canada is a non-NBP-mandating jurisdiction, and raw D5 8.46 exceeds the 7.0 ceiling, cutting two composite points relative to ceiling-exempt peers. D3 (7.3/10) is constrained by rehypothecation disclosure that lacks explicit daily set-aside language for margin accounts; opt-in securities lending is positive, but the ambiguity pulls Axis A below Axis B (CDS Tier-1 custody, rung 10). L3 disclosed: TD Bank N.A. — a US subsidiary, not TD Waterhouse Canada Inc. — pleaded guilty to BSA/AML violations in October 2024 with a $3.09B penalty; the DOJ compliance monitor and US asset cap are continuing conditions at the parent level. TD Waterhouse Canada Inc. is not named in the consent order and operates independently under CIRO. Disclose to risk-sensitive clients before recommending.
Canadian investors seeking maximum custodial safety with Big Six bank backing; large-account holders and RRSP/TFSA/RESP/FHSA registered account holders; TD banking customers who value consolidated banking and brokerage access
cost-sensitive on commissions — TD Direct is materially more expensive than Questrade or zero-commission alternatives; clients for whom parent-bank AML proximity at any level is disqualifying for risk or compliance policy
TraderVerdict brokerage scores assess custodial safety from a Canadian investor perspective. Scores do not constitute investment advice. Verify all details directly with the broker before opening an account.
Scores are on a 1–10 scale. = one step on the scoring ladder. Source links open primary evidence.