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Questrade: Converting CAD to USD (Cheapest way?)

  • Last Updated:
  • May 19th, 2017 7:55 pm
[OP]
Newbie
May 12, 2017
7 posts

Questrade: Converting CAD to USD (Cheapest way?)

Hi all,
Questrade charges 2% fee to convert CAD to USD (which I think is insane), is there any way to do it much cheaper?

I stumbled across this from 2013, but am unsure if it would still work. Does anyone use this or a similar method?
http://www.milliondollarjourney.com/low ... -u-etf.htm

Any insight would be appreciated!
6 replies
Deal Addict
May 18, 2015
1059 posts
244 upvotes
Ottawa,Ont
Alexk4424 wrote:
May 18th, 2017 11:43 am
Hi all,
Questrade charges 2% fee to convert CAD to USD (which I think is insane), is there any way to do it much cheaper?

I stumbled across this from 2013, but am unsure if it would still work. Does anyone use this or a similar method?
http://www.milliondollarjourney.com/low ... -u-etf.htm

Any insight would be appreciated!
Buy DLR, chat or call questrade immediately after and ask them to journal the shares to DLR.U...In 3-5 days the shares will settle. You then sell the shares and have USD in your account
[OP]
Newbie
May 12, 2017
7 posts
Thank you, glad this method still works, was unsure as that article was posted 4 years ago.
Deal Addict
Jun 3, 2009
3437 posts
376 upvotes
Montreal
nikels21 wrote:
May 18th, 2017 1:10 pm

Buy DLR, chat or call questrade immediately after and ask them to journal the shares to DLR.U...In 3-5 days the shares will settle. You then sell the shares and have USD in your account
Alexk4424 wrote:
May 18th, 2017 1:27 pm
Thank you, glad this method still works, was unsure as that article was posted 4 years ago.
I was often quoted 3 to 5 business days which means that it could take a whole calendar week. Thus, you are exposed to all kinds of currency fluctuations of our petro dollar during this lengthy process.
At other brokers, you can complete this type of FX spread-free with interlisted stocks like TD within the same day as long as you don't mind 2 commissions.
Zoomer: $36 nationwide + 2GB
Sr. Member
User avatar
Aug 4, 2014
949 posts
148 upvotes
Toronto, ON
As was explained many times before, once you buy DLR your rate is locked in as DLR.U only "fluctuates" by 1 cent.
Last edited by freilona on May 19th, 2017 5:45 pm, edited 1 time in total.
Deal Addict
May 31, 2007
3571 posts
554 upvotes
cn_habs wrote:
May 19th, 2017 3:27 pm
I was often quoted 3 to 5 business days which means that it could take a whole calendar week. Thus, you are exposed to all kinds of currency fluctuations of our petro dollar during this lengthy process.
At other brokers, you can complete this type of FX spread-free with interlisted stocks like TD within the same day as long as you don't mind 2 commissions.
As freilona explains, you lock in to your exchange. If anything, you are still in cash, and not "in" the market.
Jr. Member
Oct 12, 2008
188 posts
148 upvotes
Markham/Vaughan
The classic Norbert's Gambit.

These days I can't be arsed and my conversions rarely hit 5 digits so I just use TransferWise. Their rates are very competitive for smaller conversions.
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