Convert CAD to USD with Virtual Broker

[dvevan]

Hi,

I am new to trading, I funded a new account I opened with Virtual Brokers with Canadian dollar. Now I want o trade some US stock on NYSE,
VritualBroker told me that they could convert my funds to USD and charge an additional fee of 1.5% on the spread.

Has anyone experience this?
Kindly explain what this is.

Regards
Dave

[SkimGuy]

Let's say you wanted 1 USD, and the rate was 1 usd = 1 cad for simplicity's sake.

Buying 1 usd would cost you 1.015 canadian and if you sold 1 usd, you would get 98.5 cents Canadian. multiply the amount of dollars usd you need to buy by the spot rate + 1.5% , of your buying usd rate. selling is the same except you subtract 1.5% from spot rate.

Spot rate is always changing, so the rate today will be different from tomorrow

[JeKyll007]

Hi,

I am new to trading, I funded a new account I opened with Virtual Brokers with Canadian dollar. Now I want o trade some US stock on NYSE,
VritualBroker told me that they could convert my funds to USD and charge an additional fee of 1.5% on the spread.

Has anyone experience this?
Kindly explain what this is.

Regards
Dave

I havent used VB yet, but you could use what people call Norbert's Gambit.
See http://www.moneysense.ca/2012/01/20/norberts-gambit-a-better-way-to-buy-u-s-dollars/
or google it a bit.

It seems to cost no additional fee except the cost of 2 transactions (ex: as low as 2$ with VB!). I guess the trouble is worth it for large amount.

[stunaz]

I havent used VB yet, but you could use what people call Norbert's Gambit.
See http://www.moneysense.ca/2012/01/20/norberts-gambit-a-better-way-to-buy-u-s-dollars/
or google it a bit.

It seems to cost no additional fee except the cost of 2 transactions (ex: as low as 2$ with VB!). I guess the trouble is worth it for large amount.

thanks for the info... but what exactly does "journal them over" mean