Personal Finance

Brokerage with no FX fee?

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  • Jan 2nd, 2022 9:49 am
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[OP]
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Apr 29, 2010
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Brokerage with no FX fee?

Dont care about $9.99 per transaction or anything, but I got raped by TD's FX fee. I lost thousands when cashing out of US stocks.

Is there a brokerage that has low to zero currency conversion fee when buying US stonks with CAD?
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Oct 20, 2014
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Jun 6, 2017
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lolbeast wrote: Dont care about $9.99 per transaction or anything, but I got raped by TD's FX fee. I lost thousands when cashing out of US stocks.

Is there a brokerage that has low to zero currency conversion fee when buying US stonks with CAD?
Interactive Brokers has the best currency conversion rates. Since they have removed the inactivity fees recently they’re even more competitive. Only downside is if you buy a fairly larger number of shares per trade.
[OP]
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AllanMar wrote: Interactive Brokers has the best currency conversion rates. Since they have removed the inactivity fees recently they’re even more competitive. Only downside is if you buy a fairly larger number of shares per trade.
Thanks, what do you mean by the downside part? I usually buy 10-50k worth of stock and hold it for months up to a few years while I save for Down payments. How much fees will I be eating?
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Jun 6, 2017
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lolbeast wrote: Thanks, what do you mean by the downside part? I usually buy 10-50k worth of stock and hold it for months up to a few years while I save for Down payments. How much fees will I be eating?
Suggest looking at all the fees before switching. Currency fee is essentially 0.2basis points $2USD minimum. so on 50k ~$2.
https://www.interactivebrokers.ca/en/in ... th-america
https://www.interactivebrokers.ca/en/in ... 45251&p=fx

For Us Stocks its $.005/share $1 minimum, 1% maximum. It mostly becomes an issue for lower $ stocks. So anything over ~2,000 shares will likely be more than $9.95 the bank charges.
[OP]
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AllanMar wrote: Suggest looking at all the fees before switching. Currency fee is essentially 0.2basis points $2USD minimum. so on 50k ~$2.
https://www.interactivebrokers.ca/en/in ... th-america
https://www.interactivebrokers.ca/en/in ... 45251&p=fx

For Us Stocks its $.005/share $1 minimum, 1% maximum. It mostly becomes an issue for lower $ stocks. So anything over ~2,000 shares will likely be more than $9.95 the bank charges.
Thanks, these fees are great. I am not buying more than a few hundred shares at once so the fees are in single dollar range. Am I understanding it right?
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Jun 6, 2017
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lolbeast wrote: Thanks, these fees are great. I am not buying more than a few hundred shares at once so the fees are in single dollar range. Am I understanding it right?
Yes. eg 200 shares = 200 * .005 = $1USD, anything less than 200 shares will also be $1USD.
Look up a more detailed review online, they don't include any real time data/quotes but you do get so many free on demand quotes. Otherwise you have to pay per month for various packages unless you trade a lot. Keep in mind alot of older reviews will mention an inactivity/minimum fee which they recently got rid of.

The also have super low margin rates but margin is risky with them as they will auto-liquidate if you drop below (no warning/chance to fund like banks give).
[OP]
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Apr 29, 2010
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AllanMar wrote: Yes. eg 200 shares = 200 * .005 = $1USD, anything less than 200 shares will also be $1USD.
Look up a more detailed review online, they don't include any real time data/quotes but you do get so many free on demand quotes. Otherwise you have to pay per month for various packages unless you trade a lot. Keep in mind alot of older reviews will mention an inactivity/minimum fee which they recently got rid of.

The also have super low margin rates but margin is risky with them as they will auto-liquidate if you drop below (no warning/chance to fund like banks give).

Awesome thank you for this!
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Feb 14, 2002
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For Interactive Brokers, isn't there a 90 day withdrawal hold period if you withdraw to a different bank account? If technically your USD bank account is different from your CAD bank account, you'd have to wait?
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Mar 7, 2008
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quanta wrote: For Interactive Brokers, isn't there a 90 day withdrawal hold period if you withdraw to a different bank account? If technically your USD bank account is different from your CAD bank account, you'd have to wait?
I have the same question.
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quanta wrote: For Interactive Brokers, isn't there a 90 day withdrawal hold period if you withdraw to a different bank account? If technically your USD bank account is different from your CAD bank account, you'd have to wait?
mouseswimming wrote: I have the same question.
Only if you deposit by EFT. No such issue with wires or bill pay. Additionally even if using EFT you would only run into this issue if you don’t hold assets at IB and only use it for currency exchange. If your held assets are larger than your currency exchange than you can just withdraw using margin from your assets and then immediately repay the margin once your deposit clears.

It’s generally only an issue for new accounts with newly deposited funds and no assets who insist on using EFT to deposit. Bigger issue when converting USD to CAD as bill pay isn’t an option on USD and most cheap RFDers don’t want to pay their bank to wire funds to IB.Winking Face

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