FX markup charged by Canadian Brokers

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Jul 12th, 2021 11:20 pm

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Apr 23rd, 2021 11:23 am

beancounter6 [OP]: Sr. Member; Jul 25, 2019; 533 posts; 219 upvotes

Apr 23rd, 2021 11:23 am

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....

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Apr 25th, 2021 9:02 am

sckor: Sr. Member; Jul 1, 2006; 938 posts; 786 upvotes

Apr 25th, 2021 9:02 am

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

+2

Apr 25th, 2021 12:13 pm

canuck698: Newbie; May 22, 2015; 35 posts; 13 upvotes; Toronto, ON

Apr 25th, 2021 12:13 pm

A good spreadsheet it should be left as a sticky on this section of the forum along with the updated WealthSimple service fees.

Apr 26th, 2021 4:42 am

daverobev: Deal Addict; Dec 8, 2010; 2553 posts; 982 upvotes

Apr 26th, 2021 4:42 am

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.

+1

Apr 26th, 2021 6:28 pm

HammerRFDer: Deal Addict; Jul 13, 2007; 1160 posts; 667 upvotes; Toronto

Apr 26th, 2021 6:28 pm

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.

Jul 12th, 2021 10:08 am

r3ddrag0nx: Sr. Member; Mar 5, 2007; 650 posts; 127 upvotes; Toronto

Jul 12th, 2021 10:08 am

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?

Jul 12th, 2021 11:20 pm

beancounter6 [OP]: Sr. Member; Jul 25, 2019; 533 posts; 219 upvotes

Jul 12th, 2021 11:20 pm

I too would like to see the spreadsheet! Thanks

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