Comments on: Your Turn: Opening an US Dollar Self-Directed RRSP Account with QTrade http://www.canadiancapitalist.com/your-turn-opening-an-us-dollar-self-directed-rrsp-account-with-qtrade/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: RBC Direct Investing to allow U.S. Dollar Registered Accounts | Canadian Capitalist http://www.canadiancapitalist.com/your-turn-opening-an-us-dollar-self-directed-rrsp-account-with-qtrade/#comment-215777 RBC Direct Investing to allow U.S. Dollar Registered Accounts | Canadian Capitalist Tue, 13 Apr 2010 03:52:24 +0000 http://www.canadiancapitalist.com/?p=3345#comment-215777 [...] Hat tip to Chris for his heads up on RBC Direct Investing’s announcement. Post a [...] [...] Hat tip to Chris for his heads up on RBC Direct Investing’s announcement. Post a [...]

]]> By: gene http://www.canadiancapitalist.com/your-turn-opening-an-us-dollar-self-directed-rrsp-account-with-qtrade/#comment-215773 gene Tue, 13 Apr 2010 03:27:19 +0000 http://www.canadiancapitalist.com/?p=3345#comment-215773 @Chris, Thanks from me, too. I wasn't aware of this change, even though I have RBCDI accounts. I get my statements electronically and they haven't mentioned this to me yet. I guess there will be a message as they get closer to introduction. @Chris, Thanks from me, too. I wasn’t aware of this change, even though I have RBCDI accounts. I get my statements electronically and they haven’t mentioned this to me yet. I guess there will be a message as they get closer to introduction.

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/your-turn-opening-an-us-dollar-self-directed-rrsp-account-with-qtrade/#comment-215772 Canadian Capitalist Tue, 13 Apr 2010 03:20:07 +0000 http://www.canadiancapitalist.com/?p=3345#comment-215772 @Chris: Thanks for the heads up. As a matter of fact, tomorrow's post is on the RBCDI US Dollar account news. @Chris: Thanks for the heads up. As a matter of fact, tomorrow’s post is on the RBCDI US Dollar account news.

]]> By: Chris http://www.canadiancapitalist.com/your-turn-opening-an-us-dollar-self-directed-rrsp-account-with-qtrade/#comment-215769 Chris Tue, 13 Apr 2010 02:18:46 +0000 http://www.canadiancapitalist.com/?p=3345#comment-215769 Just got my March statement from RBCDI and it came with good news: starting later this spring, they will allow US$ to be held inside their RRSP (and TFSA) accounts. This means no more currency conversion commissions when trading and receiving dividents. It took a while (they had first promised it for 2009), but it's finally here. Just got my March statement from RBCDI and it came with good news: starting later this spring, they will allow US$ to be held inside their RRSP (and TFSA) accounts. This means no more currency conversion commissions when trading and receiving dividents. It took a while (they had first promised it for 2009), but it’s finally here.

]]> By: Chris http://www.canadiancapitalist.com/your-turn-opening-an-us-dollar-self-directed-rrsp-account-with-qtrade/#comment-211043 Chris Mon, 15 Feb 2010 16:27:01 +0000 http://www.canadiancapitalist.com/?p=3345#comment-211043 The BoC rate is 10341.61 / 9869.83 = 1.0478. Your rate is 10247.84 / 9869.83 = 1.0383. That is the rate they applied; you had it right. You definately got a better deal. The BoC site provides a single rate per day (could be the average or the end-of-day); you got a specific rate within that day. You were lucky. The BoC rate is 10341.61 / 9869.83 = 1.0478.

Your rate is 10247.84 / 9869.83 = 1.0383. That is the rate they applied; you had it right.

You definately got a better deal. The BoC site provides a single rate per day (could be the average or the end-of-day); you got a specific rate within that day. You were lucky.

]]> By: TEMPLE http://www.canadiancapitalist.com/your-turn-opening-an-us-dollar-self-directed-rrsp-account-with-qtrade/#comment-211039 TEMPLE Mon, 15 Feb 2010 16:00:51 +0000 http://www.canadiancapitalist.com/?p=3345#comment-211039 Hi everyone, I need the help of the math wizards here. As promised (but a bit late), I am trying to figure out exactly what conversion rate I am paying, and I have a settlement record here that is difficult to sort out. Here are the specifics of the trade: on January 20, 2010, I bought some US shares for a subtotal amount of 9869.83 USD, which includes the commission charged in USD. My settlement record indicates an "exchange" of 378.01, which is added to the USD subtotal, resulting in a net amount of 10247.84 CAD. I was given an exchange rate of 1.0383, according to my settlement record. In other words, 9869.83 x 1.0383 = 10247.84. From the Bank of Canada page (http://www.bankofcanada.ca/en/rates/exchform.html), $9869.83 converts on 20 Jan 2010 to 10341.61 CAD, at a published rate of 1.0478. Seems like I got a better exchange rate than the average rate posted by the BoC. Presumably, the differential is due to a falling Canadian dollar after I made my trade. However, (and this is where I need the math brains) is it possible to figure out the conversion rate applied? Thanks! TEMPLE Hi everyone, I need the help of the math wizards here. As promised (but a bit late), I am trying to figure out exactly what conversion rate I am paying, and I have a settlement record here that is difficult to sort out.

Here are the specifics of the trade: on January 20, 2010, I bought some US shares for a subtotal amount of 9869.83 USD, which includes the commission charged in USD. My settlement record indicates an “exchange” of 378.01, which is added to the USD subtotal, resulting in a net amount of 10247.84 CAD. I was given an exchange rate of 1.0383, according to my settlement record. In other words, 9869.83 x 1.0383 = 10247.84.

From the Bank of Canada page (http://www.bankofcanada.ca/en/rates/exchform.html), $9869.83 converts on 20 Jan 2010 to 10341.61 CAD, at a published rate of 1.0478. Seems like I got a better exchange rate than the average rate posted by the BoC. Presumably, the differential is due to a falling Canadian dollar after I made my trade. However, (and this is where I need the math brains) is it possible to figure out the conversion rate applied?

Thanks!

TEMPLE

]]> By: Alan http://www.canadiancapitalist.com/your-turn-opening-an-us-dollar-self-directed-rrsp-account-with-qtrade/#comment-211007 Alan Mon, 15 Feb 2010 02:19:29 +0000 http://www.canadiancapitalist.com/?p=3345#comment-211007 I also have an RRSP account with RBC. I get charged 1.5% exchange rate when I buy a US stock, and then get charged another 1.5% exchange rate when I sell the stock. Thats 3% total. Plus the 29.95 U.S. x 2 per 1000 shares bought and sold. On top of that you have to be carefull because if the Canadian $ goes up then you lose more. I have lost a lot of money on the conversion. In one instance i sold my stock after it went up 11%, but in the end only to made 1%. I also have an RRSP account with RBC.

I get charged 1.5% exchange rate when I buy a US stock, and then get charged another
1.5% exchange rate when I sell the stock.

Thats 3% total. Plus the 29.95 U.S. x 2 per 1000 shares bought and sold.

On top of that you have to be carefull because if the Canadian $ goes up then you lose more.

I have lost a lot of money on the conversion. In one instance i sold my stock after it went up 11%, but in the end only to made 1%.

]]> By: Shawn http://www.canadiancapitalist.com/your-turn-opening-an-us-dollar-self-directed-rrsp-account-with-qtrade/#comment-210140 Shawn Wed, 03 Feb 2010 04:03:22 +0000 http://www.canadiancapitalist.com/?p=3345#comment-210140 What about OptionsExpress? http://www.optionsxpress.ca/index.aspx I noticed they now offer USD RRSP accounts - has anyone tried them? I've been with BMO for years, but their service is not great, fees are high, and they are very tough on options requirements (for a non rrsp account). I was considering opening an account for options outside of BMO, but now wonder about just switching to them. Any experiences out there? What about OptionsExpress?

http://www.optionsxpress.ca/index.aspx

I noticed they now offer USD RRSP accounts – has anyone tried them? I’ve been with BMO for years, but their service is not great, fees are high, and they are very tough on options requirements (for a non rrsp account).
I was considering opening an account for options outside of BMO, but now wonder about just switching to them. Any experiences out there?

]]> By: Chris http://www.canadiancapitalist.com/your-turn-opening-an-us-dollar-self-directed-rrsp-account-with-qtrade/#comment-210130 Chris Wed, 03 Feb 2010 02:36:21 +0000 http://www.canadiancapitalist.com/?p=3345#comment-210130 Just bought some US stock (in my RRSP account, thus paying with C$) at RBC Direct Investing and the exchange rate they gave me includes about 1.5% exchange fee. In order to get out of that position, I will likely do a swap with my cash account, thus avoiding more conversion fees. There was talk of them offerering US$ RRSP some time in the future. I hope they're actually working on it and not just promising it to keep clients. Just bought some US stock (in my RRSP account, thus paying with C$) at RBC Direct Investing and the exchange rate they gave me includes about 1.5% exchange fee.

In order to get out of that position, I will likely do a swap with my cash account, thus avoiding more conversion fees.

There was talk of them offerering US$ RRSP some time in the future. I hope they’re actually working on it and not just promising it to keep clients.

]]> By: CDN_Investor http://www.canadiancapitalist.com/your-turn-opening-an-us-dollar-self-directed-rrsp-account-with-qtrade/#comment-209937 CDN_Investor Sun, 31 Jan 2010 17:41:14 +0000 http://www.canadiancapitalist.com/?p=3345#comment-209937 @TEMPLE - You won't notice the 2.5% conversion fee... you have to dig deeper yourself and calculate the bid/ask and round trip currency conversions. Last trade I completed with TD, I had a whopping 1.9% charge each way over a two day hold meaning they cost me almost 4% on the trade. Riduculous since institutional investors typically pay in the range of single basis points for these trades. What I would like is to send registered CDN dollars over to a another RRSP trustee and have them convert into USD at a reasonable charge, ie sub 20bp. Then I could leave it with them and invest strictly in the US markets. Anybody know a firm like this? @TEMPLE – You won’t notice the 2.5% conversion fee… you have to dig deeper yourself and calculate the bid/ask and round trip currency conversions. Last trade I completed with TD, I had a whopping 1.9% charge each way over a two day hold meaning they cost me almost 4% on the trade. Riduculous since institutional investors typically pay in the range of single basis points for these trades.

What I would like is to send registered CDN dollars over to a another RRSP trustee and have them convert into USD at a reasonable charge, ie sub 20bp. Then I could leave it with them and invest strictly in the US markets. Anybody know a firm like this?

]]>