# Currency conversion



## saanweyn2k2 (Feb 23, 2011)

I have large amount of money in USD currency (currently in Canadian Bank; TD). I would like to convert that to CAD $.

However I notice that TD and most banks charge about 2% in conversion fee.

Anybody know how I can get better rates, if not through them, other places that do currency conversion? It sucks that if you want to invest in US stocks you have to pay 2% upon conversion to USD and another 2% for currency back to CAD. How do people get around this?


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## Jungle (Feb 17, 2010)

Gambit. It will cost you the price of two trades. If you have over $50k with TD they will charge you $9.99 trade. So the conversion will cost you $19.98. 

Read this thread: 

http://www.financialwebring.org/forum/viewtopic.php?t=198


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## Cal (Jun 17, 2009)

Jungle, thx for the link.....in another thread on here I was recently looking into exchanging some $CDN for $USD to pick up some equities. I believe the preferred rate as per Cardhu on that thread was 1.4%

Just to clarify from the page you linked to above:
1. Open a TDWH Canada account.
2. Deposit your C$.
3. Buy as many MG.A on the TSE as you can for your C$.
4. Sell the same number of MGA on the NYSE and settle in US$.
5. Phone TDWH and ask them to journal the MG.A in your C$ account over to the US$ account.

I had previously done #1 and #2. And for #3 will probably purchase RY online with Canadian dollars as it has good volume. Then for #4 once the trade has been confirmed, can the shares be sold online through TDWH, or would I have to call in to make the trade?

Obviously I would have to call in the do #5, to get the $ transferred from the CDN account to the USD account.

As per TDWH I would be looking at $29 per trade to do this conversion into USD, plus any additional trading fees to buy the shares that I really want to hold. (I used RY in this example as I don't own any, and don't plan on it in the near future to ensure simplicity)

Do I have all of that right?

On a $35,000 transaction, I would be looking at about $58 in fees for the 2 trades vs $490 (1.4%) in fees.


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## Jungle (Feb 17, 2010)

^ Sounds like you got it. Disclaimer: I've never done it. 

Cal I think you are a dripper, (so maybe you don't have a brokerage) so maybe you can consider doing this with a cheaper brokerage? (shale I dare to say, Questrade?) 

What about looking at something like online currency conversions. (Such as XE.com) Apparently they give you pretty good rates. YOu just have to set up an account.


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## Cal (Jun 17, 2009)

I will definitely look into that.

Yes, becauuse of my interest in dripping, I try to do whatever I can to save a few $ in bank fees when I don't have to....I was looking to add some US equities inside my SDRRSP.

Now I want to do thie gambit just to spite the bank. 

Thanks for the help.

I will post when/how the transaction goes.


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