Canadian foreign exchange dealers association

Canadian foreign exchange dealers association

Posted: Pulse-0 Date: 25.06.2017

We respect your email privacy. With the Canadian dollar again hovering around parity, it seems like a good time to consider ETFs denominated in US dollars. But the problem of high currency exchange fees remains a problem for DIY investors, as I wrote about last month. This topic has generated a lot of discussion recently, and a number of useful resources have appeared to help investors make informed decisions about currency exchange costs.

First, The Globe and Mail just released its 12th annual review of online brokerages. That was a surprise, to say the least. The moral of this story is clear: Readers have told me that they have been quoted rates as low as 0. For my October post comparing the cost of Canadian and US-listed ETFsI included an Excel spreadsheet and invited readers to download it for their own use. Raven went a step further and built a web version of the spreadsheet that adds some extra features.

The calculator allows you to compare the bid-ask spreads of six liquid stocks that trade on both the Toronto and New York exchanges RIM, Potash, Barrick Gold, TD Bank, Royal Bank and CIBC. Use this calculator at your own risk, please.

The CAD—USD exchange rate is preset at parity for now, and the stock data may not be precisely real-time. The bank brokerages were once required by the government to have only Canadian currency in registered accounts but that requirement was ended in The Investment Dealers Association of Canada gave the OK to have U.

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Maybe the class action lawsuits will finally tip the scales http: Your advice about calling the brokerage about forex rates is spot on. The rates seem to be dependent on the amount converted and probably other factors as well.

Northern Raven has reported some findings about TD exchange rates that he figured out by trial and error on the web interface. IB is less than that. I think IB is fundamentally different from the other online brokerages because it does not offer RRSP or TFSA accounts and is clearly designed for active traders, not long-term investors. I think the Norbert Gambit is the best way to go. Can TDW be lower than that?

A couple of clarifications on the calculators I created. Please be careful in applying its displays to real life. If the stock and exchange rate quotes have different delay times it will probably affect the Savings on a volatile exchange rate day.

My own opinion is that the TD value is completely bogus — I think they just multiplied by their normal 1. CIBC seems to be something similar — no plausible exchange and spread assumption for Sept 20 can produce that number. I hope they try again — a correct chart would be very helpful. As it is, there is no incentive for them to draw attention to this lucrative little corner of things.

I have a forex question but not related to investments. What would be the best way to get USD or any other foreign currency for how much money does insurance salesman make I have always used currency exchange place close to my work place better rates than banks and recently I used HSBC debit card at the destination.

HSBC did not have exchange fees. Is there a better method? I had a great deal of difficulty finding published spreads, so hopefully this will give everyone a ballpark idea and save a phone call. Dan, I read your explanation in the most recent Moneysense about how to use DLR and DLR. It makes total sense moneymakers dj me—except for the fact that, according to Globeinvestor, the volume of trading of DLR.

U on the TSX has been exactly 0 invertir mejor forex May Can you explain the source of liquidity for DLR.

Thanks for the comment. That information is not correct: In any case, trading volume does not necessarily affect the liquidity of ETFs the way it does with small stocks. If you do have a question about DLR, however, I would suggest you email Horizons directly. They are quite good about responding with answers to questions like this: In I moved money form USD to CAD in a big way, now I have been moving it the other canadian foreign exchange dealers association and going offshore with investments as it is hard to find many good Canadian investments these days be they long or short term.

Couch potatoes might want to explore other currencies. But these markets seem closed to me.

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But others like Brazil, Panama, Costa Rica and Chile are getting more of my read time. I am ready to move serious money offshore. I did not realize how much the spread cost on foregn exchange. I have my accounts with Questrade and it was always 0. Hi Dan, Thanks for all your great advice. If an investor is in a dollar-cost-averaging program, where he makes frequent, small investments into a US dollar ETF, then the investor finds himself converting relatively small amounts, four or forex kontor i lund times a year, to put towards the US ETF.

This is especially true for US equities, where VFV and ZSP are low-cost choices with no currency hedging. The choices are not so good for Canadian-listed international equity ETFs. CCP, I was just looking at other brokerages, I noticed that Questrade offers commission free trades on all ETFs. This sounds great — I can buy DLR without commissions to do the gambitand even buy how do you become rich in the stock market US listed ETFs without commissions.

Am I missing something here? This sounds too good to be true. The commission-free deal is only for purchasing ETFs: So the DLR gambit is half price, not free. Just tried to perform a NG at TD this morning.

They are now saying that they will not do the back end trade for the online rate. Another way to minimize FX in a non-reg account would be to buy and sell an interlisted security. As long as this is done together your cost would be the commission paid and a minor spread if rates move which is unlikely. The complication is finding a broker who will allow you to do the sell or short sell right away.

I have heard that RBC allows this with no extra fees. TD will only do it after settlement and charge an additional fee. Web Wealth Gurus gives some tips to working in retirement. Canadian Couch Potato has info on lowering your currency exchange fees. No Credit Needed measures his financial stress level. Squawkfox has 5 ways to decorate your holiday […]. Email will not be published required. Contact Disclaimer and Policies. Navigation Canadian Couch Potato Your complete guide to index investing.

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Claymore Global Monthly Advantaged Dividend ETF. Money Smarts Blog November 12, at 7: Simon November 12, at 9: Canadian Couch Potato November 12, at 9: Canadian Capitalist November 12, at 5: Thanks for the mention.

NorthernRaven November 13, at 7: Rajah November 13, at Corey February 7, at 4: I recently made a large exchange at TD Waterhouse, and was quoted the following spreads: Mark January 3, at 6: Keep up the great work!

Canadian Couch Potato January 3, at 6: Best part is, if you move out of Canada, you no longer need to declare the income to Ottawa. Karim January 25, at 4: Hi Dan, I did not realize how much the spread cost on foregn exchange. Canadian Couch Potato January 25, at 4: Milhouse April 10, at 3: Canadian Couch Potato April 10, at 3: Milhouse April 11, at 3: Canadian Couch Potato April 11, at 4: Freddie June 17, at Anyone else had this problem?

canadian foreign exchange dealers association

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