Comments on: Wash Trades Save You Money

By: Beware of hidden foreign currency conversions | Canadian Capitalist

Beware of hidden foreign currency conversions | Canadian Capitalist — Tue, 25 Jan 2011 03:36:41 +0000

[...] provide their clients a way to avoid these expensive and hidden foreign exchange conversions. TD Waterhouse’s wash trading allows investors to park proceeds of US dollar trades into the TD US$ Money Market Account. RBC [...]

By: Scotia iTrade Offers a US-Friendly RRSP | Canadian Capitalist

Scotia iTrade Offers a US-Friendly RRSP | Canadian Capitalist — Wed, 19 Jan 2011 03:06:55 +0000

[...] The US-Friendly account holders can avoid automatic foreign currency conversions on US dollar buys and sells transacted on the same day because both trades will be converted at the same exchange rate. An investor selling and buying US securities in a regular Scotia iTrade RRSP account would have lost $330 in (needlessly) converting US dollars into Canadian dollars and back into US dollars again. Note that a few other brokers such as TD Waterhouse already wash US dollar trades in RRSP accounts. [...]

By: Reducing the Cost of Currency Exchange

Reducing the Cost of Currency Exchange — Sat, 27 Nov 2010 14:51:57 +0000

[...] paying a currency exchange fee twice. For more information, see these posts from Michael James and Canadian Capitalist, then call your brokerage for [...]

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By: Jeff Kaminker

Jeff Kaminker — Tue, 09 Mar 2010 06:30:51 +0000

I actually recommend that you seriously look into Virtual Brokers (www.virtualbrokers.com). These guys allow you to hold a US$ account within your RRSP and RESP so that you can keep your physical US dollars segregated from your Canadian dollars. This way you can avoid this nonsense of potentially getting dinged by TD on the conversion from US$ to C$.

Personally, I find the wash trade at TD such a nuisance as you have to call in the trade and speak to a representative. Furthermore, I find there is a ton of slippage on US$ dividend paying stocks. Not only do you lose the witholding tax within a registered account, but you also get dinged when TD converts the US dividend into C$.

By: Mel

Mel — Tue, 01 Dec 2009 20:42:43 +0000

Gene, I had to ask TDW to apply the wash rule to my account. After that it will automatically be applied. I found out about it after a charge for a 12.05% exchange to USD. On a small trade it amouted to a few dollars per share!!!
When I called and questioned that the rep mentioned using the wash rule, so I set it up so this doesn’t happen again.

By: Gene

Gene — Wed, 13 Feb 2008 17:10:35 +0000

Thanks for the response, CC. Great to hear they do it automatically. Also, like you say, getting the remainder, if any, put in the MM fund is a good idea too.

By: Canadian Capitalist

Canadian Capitalist — Wed, 13 Feb 2008 01:58:02 +0000

Gene: If the buy and sell is on the same date, TDW automatically washes your trades by setting both trades at the same exchange rate. No action is needed from the investor.

If you sell a stock and want to “wash” the trade into the TD Money Market fund, you need to call in to make the wash.

By: Gene

Gene — Tue, 12 Feb 2008 22:31:33 +0000

I was under the impression that the wash trades at TD were not automatic. I thought the investor had to call in and request that the trades be washed. Has this changed? I had a comical chat with an inept customer service rep at TD Waterhouse before switching from E*Trade Canada to TDW about what wash trades were and how to do them (the guy was clueless), so I’m wary about talking to them again. I suppose I would have to talk to a certified trader there to get the straight goods.

By: Reader Query: Should I Choose Lower Commissions over Wash Trades

Reader Query: Should I Choose Lower Commissions over Wash Trades — Wed, 07 Nov 2007 03:07:02 +0000

[...] a large number of U.S. stocks that I wanted to sell over time and put the proceeds in index funds, I would save more money with having a wash trade feature as opposed to lower commissions. However, if our portfolios were fully indexed already, I might [...]