Questrade: everyone check now, before moving cash
Moving USD cash from Margin to TFSA
Inside Questrade margin account, I had USD cash. I decided to move that to Questrade TFSA, to avoid paying taxes on gains. I did the REQUEST, clicked USD, and submit.
In 2 days, low and behold, I check my TFSA balance, $$$ was in CAD, and ZERO dollars in my USD. WTH!!
I phoned Questrade and yes, it converted my USD (to CAD) automatically. After she investigated, she said it was because my setting of "Currency settlement" was set to CAD. Apparently by me back in 2010.
What I knew was, I learned from before (the hard way like many here), that there's a trade settlement currency setting. I never knew MOVING CASH is considered a "settlement". Even in the trading terminology, settlement is when you complete a buy or sell of a stock right? So another lesson learned.
I told Questrade to put a note or warning in their request page: "Funds will be converted to the currency as per Currency settlement selected" , so users will know.
In summary, everyone should go now, into their Questrade account (not the app) . Before you move cash or trade.
My accounts > select your account> account management > account management> currency settlement
If you don't want any conversions, select "Currency of Transaction"
Now, I also found out something new, in our Margin accounts, there is not such option of Currency Settlement. Which I thought we always had before. Questrade rep told me, it is set to "currency of transaction".
So, to me this means, if you have $10,000 CAD and $0 USD, and you go by AAPL on the Nasdaq.
Questrade will lend you USD on margin, your USD will now be in negative (interest will start). Let's say you make a profit.
When you Sell AAPL, the cash will now be in your USD as USD. It will not convert to CAD.
Hope this helps others to avoid some headaches. Lucikly, I think CAD is stronger today, and charts tell me it can be stronger still. I'll have to convert back to USD soon.