What's the best and cheapest way to exchange and transfer 50k CAD to USD?

[XBeta]

Hello,
I just recently moved to US for a new job, but would like to transfer some 50K of CAD and convert it to USD, then move it with me to US.

I have bank account in US as well, but the wiring transfer is rather very expensive.

XE Trade won't let me trade with more than 10k per transaction and it wasn't that good at price anyway.

Anyone knows a good + cheap way to transfer?

Thanks.
Sam.

[XBeta]

Pump!

[halflife150]

Norbits Gambit, google it if you don't know what that is, about cheapest possible method. If you think xe.com was expensive, nothing really going to be signicantly cheaper than xe.com.

[bkost]

http://www.canadianforex.ca/

over two times cheaper than XE and with much easier paperwork as well
I used them once a month for last 5 months

[dgodsell]

I exchanged $72,000 CDN to US this past Wednesday using Norbit's Gambit at TD Waterhouse.

It was easy:

I called TD Waterhouse and bought 931 shares of TD Bank on the TSX (Commission fee: $29) online, while they were on the phone. The CSR then immediately sold 931 share of TD Bank on the NYSE (Commission fee: $113.28) and voila, I had approximately $72,000 USD in my USD margin account.

I'm not sure if I could have done it without the CSR, because he had to "journal over" some part of the transaction.

Great way to avoid currency exchange commission. Good luck if you try it.

[actng]

I exchanged $72,000 CDN to US this past Wednesday using Norbit's Gambit at TD Waterhouse.

It was easy:

I called TD Waterhouse and bought 931 shares of TD Bank on the TSX (Commission fee: $29) online, while they were on the phone. The CSR then immediately sold 931 share of TD Bank on the NYSE (Commission fee: $113.28) and voila, I had approximately $72,000 USD in my USD margin account.

I'm not sure if I could have done it without the CSR, because he had to "journal over" some part of the transaction.

Great way to avoid currency exchange commission. Good luck if you try it.

With more than $50,000 in assets, the commission fee on trading stocks should be $9.99 if done on easyweb/webbroker.

Likewise, I don't know why the commission fee to sell on the NYSE was $113.28, but perhaps that's what they charge for norbit gambit?

Either way still a good deal only cost you 0.1% to convert currencies.

[Akitakara]

With more than $50,000 in assets, the commission fee on trading stocks should be $9.99 if done on easyweb/webbroker.

Likewise, I don't know why the commission fee to sell on the NYSE was $113.28, but perhaps that's what they charge for norbit gambit?

Either way still a good deal only cost you 0.1% to convert currencies.

I'm pretty sure it's because the transaction occurred over the phone. If he had sold it himself online (somehow) it woul dhave been the regular rate of $30/$10 as applicable

[actng]

I'm pretty sure it's because the transaction occurred over the phone. If he had sold it himself online (somehow) it woul dhave been the regular rate of $30/$10 as applicable

telephone orders should be $35 + $.06/sh @ 931 shares should be $90

can't sell himself online because the process requires journaling over to US and selling.

not important though, cuz the overall cost is still cheaper than any other forex service.


edit: never mind, the US cost is $39 + $.08/sh @ 931 shares is $114.

[ACC-Major]

why no one consider using RBC DI?
I have done it many times, exchanging from $5,000 to 50,000. I was able to do it without any problem.
Just buy something on CAD side, and sell on USD side. If your account doesn't have margin, you need to wait for 3 days to withdraw money.
Everything is done online and automatic. Commission is $9.95CAD + $9.95USD

[halflife150]

http://www.canadianforex.ca/

over two times cheaper than XE and with much easier paperwork as well
I used them once a month for last 5 months

Do you actually know what the spread/fees they charge, otherwise would be hard to compare.

[XBeta]

Thanks guys!
With RBC DI or TD Waterhouse
Do I need an account for that?
because I'm now in US and can't come back to Canada for some time to setup an account.

Do I just call them?
With my 50k CAD in my Canadian bank, how are they going to transfer it?

Btw, my Canadian bank is PC Financial and my US bank is Bank of America if that makes any difference.


Thanks.

[actng]

TDW and RBC DI are the investment brokerages for TD and RBC. if you don't have an account already it may be hard to set up without being here in person.

[theBeachBoy]

I have used Calforex for large amounts. Very good rates

[Cerenity]

BMO is also automatic using the buy on TSX sell on NYSE method. at first it appears to be +X shares in CAD and -X shares in USD, but after a few days they cancel out and disappear. i found it very convenient

[ACC-Major]

BMO is also automatic using the buy on TSX sell on NYSE method. at first it appears to be +X shares in CAD and -X shares in USD, but after a few days they cancel out and disappear. i found it very convenient

Thanks, i guess i know where i should go if RBC pissed me off.
That is what happened with Questrade. They upgraded their system for the worse and pissed me off.

Just wondering, how much does BMO reimburse for transfer rebates?
At that time RBC offered me up to $200 for each account containing 15k or more.
Luckily all of my accounts were above that figure.