Questrade, etc... - USD -Buying US Stocks on margin as Opposed to buying USD dollars
Isn't it better to buy US stocks on margin if your cash is in CAD. On the premise that you don't plan to keep your US stocks for along time.
For instance, the margin rates are ~6.5% (I think). If I only plan on selling my US stocks in the short term, then it save the currency conversion commission.
If one buys US Stocks by converting CAD->USD and then back, your are paying ~3%.
Can anyone share their thoughts on this, and whether this is a sound strategy?
Thanks
PhiliO
For instance, the margin rates are ~6.5% (I think). If I only plan on selling my US stocks in the short term, then it save the currency conversion commission.
If one buys US Stocks by converting CAD->USD and then back, your are paying ~3%.
Can anyone share their thoughts on this, and whether this is a sound strategy?
Thanks
PhiliO