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FX markup charged by Canadian Brokers

  • Last Updated:
  • Jul 12th, 2021 11:20 pm
[OP]
Member
Jul 25, 2019
412 posts
178 upvotes

FX markup charged by Canadian Brokers

Hey - has anyone seen a post or website that summarized the FX mark-up charged by the large Canadian brokers? Looking around but most of the big banks are super cagey and non transparent when it comes to this....
6 replies
Sr. Member
Jul 1, 2006
787 posts
617 upvotes
The annual Globe and Mail Brokerage rankings have an example of this. You can find it in the spreadsheet here:
https://www.theglobeandmail.com/files/e ... -2021.xlsx

Interactive Brokers, not surprisingly was the best. But CIBC, HSBC, and QTrade are next.
Foreign exchange rates
Brokers were asked to say what they would charge a client who bought $15,000 in U.S. dollars as part of a purchase of a U.S. stock.
The hypothetical transaction was made on the morning of Dec. 7, 2020 (stock trading commission not included).

BMO InvestorLine $19,467
CIBC Investor's Edge $19,425
Desjardins Online Brokerage $19,478
HSBC InvestDirect $19,424
Interactive Brokers $19,202
National Bank Direct Brokerage $19,512
Qtrade Investor $19,425
Questrade $19,580
RBC Direct Investing $19,445
Scotia iTrade $19,485
TD Direct Investing $19,473
Virtual Brokers $19,490
Newbie
May 22, 2015
30 posts
10 upvotes
Toronto, ON
A good spreadsheet it should be left as a sticky on this section of the forum along with the updated WealthSimple service fees.
Deal Addict
User avatar
Dec 8, 2010
2486 posts
907 upvotes
It's crazy how much of a spread there is, and particularly the difference between IB and everyone else... really is price gouging by the banks, it's not as if forex costs them very much at all when there is a wash trade for most of it for them.

OP remember you can always do Norbert's Gambit - so while Questrade looks absolutely horrible, you can circumvent that with a little time. Some of the others deign to allow you to do the same.
Deal Addict
Jul 13, 2007
1077 posts
578 upvotes
Toronto
daverobev wrote: remember you can always do Norbert's Gambit
This. I find it kinda fun to do now because I know the bank isn’t making any money on me.

I usually use a cross-listed stock that I want to build a position in so I feel like I’m only paying 1 commission, not 2.
Member
Mar 5, 2007
284 posts
35 upvotes
Toronto
canuck698 wrote: A good spreadsheet it should be left as a sticky on this section of the forum along with the updated WealthSimple service fees.
Spreadsheet link doesn’t seem to work. Anyone have another source?

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