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What's done great in the past is not necessarily going to do great in the future.
You want to invest in what's been beaten up.
Everybody loves a winner and hates a loser.
 

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One problem with investing in US based ETFs is getting dinged on the exchange. For example, TD currently charges 4.10% to convert to US dollars when buying but converts at 1.25% when selling. That's like a load of 2.85%! It will take a long time for my lower MERs to make up the difference.

Do any other trading sites offer better deals?
 

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c'mon spidey this is not like you. For USD exchange, just learn to do the gambit. Heaven knows it's been talked about enough here, there & everywhere.

the gambit means that, for a quick carnival ride plus 20 bucks, you get your US dollars. Same thing on the return trip. Cheaper than forex rates. More fun, too.
 

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Discussion Starter #5
What happens when the Canadian dollar is worth more than the U.S. greenback? What exchange rate do they charge you then?
 

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belguy you are confusing 2 entirely separate issues.

one is the CAD/USD exchange rate. This fluctuates. This is the one you are thinking of in your post.

the other is the currency exchange fee charged by all the financial institutions for the work involved in exchanging your currency for you. Typically, institutions tend to have a fairly fixed fee, which is a percentage of the MI (money involved.) They charge this fee regardless of whether the canadian dollar is worth more than, or less than, the US dollar.

generally speaking these fees are somewhat masked, because what the institution will quote you is the price to buy or to sell. If the client asks for both prices, client can get an idea of the spread. Typically, it's about 2%. This is very steep, imho.

the fluctuating wholesale exchange rate for CAD/USD is established every few seconds by the trading floors of a number of big money-centre banks. The accepted daily marker exchange rate is the bank of canada noon rate. It's based on the median of these money-centre bank rates.

retail clients have no prayer whatsoever of obtaining an exchange rate as beneficial as the wholesale rate. Something close to it can be obtained by forex traders.

alternately, nimble traders can ride on the coattails of the forex traders by executing the currency gambit, aka norbert's gambit, with a pair of stock trades. They can migrate funds from one currency to the other for the cost of a couple of discount broker commissions. It's like bypass surgery. They are bypassing all of the standard fee-charging currency exchange mechanisms.
 

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Discussion Starter #7
Thank you for the clarification on this. Yes, I was confused on this matter but you have straightened me out!!:cool:
 
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