Good & bad news:
the bad one first: No gambitting between TSX / European Exchanges or NYSE/European Exchanges. No gambit between European Exchanges either, for example, you can’t gambit between Switzerland and Germany.
Good news: here is what I found at Interactive Brokers:
- with an IB account one can buy and sell either currencies or stocks on most European exchanges. Stks bought on the Dax (Frankfurt) must be sold on the Dax. IB can keep the cash as Euro in the account until you want to withdraw, convert or trade again.
- if traders wants to withdraw the cash in Euro IB will transfer it to a Euro account which one needs to open either in Canada or in Europe. Account in Europe: European residents only. In Canada as far as I know Scotia and HSBC offer Euro accounts. IB would transfer the Euro cash into them.
- best of all: IB charges only 1.5 pip over spot. For example, if Euro cross is 1.2677, IB would sell for 1.26785. I checked this 2x because I couldn’t believe it but it seems to be correct. Haven’t tried it yet. That’s quite a fantastic spread I could live with.
- one can also do some kind of currency trading: exchange CAD$ for Euro when the Euro is as low as it is presently. Let the Euro sit in the IB account and sell it back into CAD$ when the Euro is high. A monthly account fee of CAD$10 would apply.
- IB account needs to be funded before trading or buying currencies, minimum CAD$10k. Stk trade cost $2.50/trade.
- if someone wishes to trade rather than buy currency, the IB account would be a margin account which could be funded in CAD$ and to pay for a European stk it could be borrowed against the CAD$ and no FX would occur at all.
keep in mind that the IB fee is $10/month or else at least $10 in commissions each month, whichever is greater. I would imagine that most clients work off that $10 in commissions. A point to check on: if client has $6.50 in commish for a particular month, would his fee be an extra $3.50 or would it be the entire $10 on top of the $6.50 commish ...
also a good idea to double-check that 2.50/trade commish. I believe commish might vary according to size of order. Also there might be quote data fees ...
I believe I have 100 quotes of live data per month in IB (unlike my Questrade accts). You get more free live quotes if you spend a fortune on commish or have massive equity. Basically IB rules if only they did registered accounts.
Thanks for that post. I suspected I could have used IB to transfer CAD to EUR acct but I couldn't find any info at the time. I looked into linking my Euro acct but it didn't jump out at me. They've recently rebuilt the entire administration site from the ground up so I'll try again.
When everyone thinks the same they don't think at all
Euro acct is in Europe but it I don't see why you couldn't use one in Canada. If I go to withdraw funds, I have the option of EFT or Wire. If I select Wire I can then select an account in many countries in many many currencies, bank or broker accounts. EFT only has the option for USD or CAD
but U should check out the cost of those wire transfers
the approach would be to FX larger amounts & only WD overseas currencies couple times a year ...
(aside to Pucki) (if U pass by) would you have an opinion on CHF you'd be willing to share ? will the authorities have to bow to foreign pressures & unpeg chf from euro, allowing chf to rise ... ?
€8 or $10USD from IB? Probably would have been cheaper on a $40k transfer, or even a few $1k.
TD actually charges me $30CAD to RECEIVE an international WIRE... which is annoying because the person paying it would have paid it otherwise..
Swiss National Bank has repeatedly said it will not to deviate from 1.20 Euro/CHF but Imho it will give “something” if pressure becomes too much. They may not go the whole way = unpegging the CHF and letting the currency rise. But they will have to stop the cash flow into the country such as “closing the border” to outside cash flow, restrict bank accounts owned by foreigners; restrict the amounts foreigners can deposit, etc. Simply to maintain Switzerland’s competitiveness, secure jobs. Many Swiss think 1.20 is acceptable...and that before the CHF can rise the EU has to bring its house in order.
The Swiss are good at taking care off themselves. Think about the pressure for them to join the EU. In the end they did not join the EU but they entered into treaties to “balance the act” .......
......my very humble and laymen opinion