Brokerage with no FX fee?
Is there a brokerage that has low to zero currency conversion fee when buying US stonks with CAD?
Dec 30th, 2021 1:19 pm
Dec 30th, 2021 1:31 pm
Dec 30th, 2021 1:39 pm
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.
Dec 30th, 2021 1:43 pm
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?
Dec 30th, 2021 1:55 pm
Suggest looking at all the fees before switching. Currency fee is essentially 0.2basis points $2USD minimum. so on 50k ~$2.
Dec 30th, 2021 2:06 pm
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?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.
Dec 30th, 2021 2:15 pm
Yes. eg 200 shares = 200 * .005 = $1USD, anything less than 200 shares will also be $1USD.
Dec 30th, 2021 2:35 pm
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).
Jan 1st, 2022 2:24 pm
Jan 1st, 2022 9:34 pm
I have the same question.
Jan 2nd, 2022 9:49 am
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.