Investing

Help with Scotia itrade CAD & USD accounts

  • Last Updated:
  • Dec 26th, 2020 7:33 pm
[OP]
Newbie
Dec 23, 2020
6 posts
1 upvote

Help with Scotia itrade CAD & USD accounts

Hi
I am new to scotia itrade & investing. I traded US shares in CAD account and realized they loot you on exchange rate ridiculously. I have tried to call them and been waiting for hours in vain. now i still have other US shares in the CAD account. How can I minimize my losses? I have raised service requests to transfer shares from CAD to USD account, but havent heard back nor can I track those requests anywhere. can someone please help me with what can I do?
6 replies
Deal Addict
User avatar
Jan 16, 2007
1312 posts
1479 upvotes
The currency exchange happens when a transaction occurs. The fact it's currently held in the CAD account doesn't matter, until a transaction occurs. If you want to sell those shares and keep it in USD, then you have to wait until the service request is complete. If you want to place new trades on the USD side then you have to get USD into that account somehow (currency exchange with iTRADE, selling existing, transferring in from a Canadian bank account denominated in USD, Norbert's Gambit).
🏦 Banking: Alterna Bank (1.1%, No fees), Motive Financial (1.25%, No fees)
📈 Investing: Scotia iTRADE (XGRO, No fees)
💳 Spending: Scotia Amex Gold (5pts dine/3pts drive, forex), Amex SCP (2%, rest), Brim World Mastercard (1.5%, non-Amex spend)
[OP]
Newbie
Dec 23, 2020
6 posts
1 upvote
Thank you for your reply. The service request was completed. so they transferred my shares from CAD to USD account but now they changed the booking price. How is the double conversion justified? There was one conversion when I bought the shares, i can understand that since I bought US shares. so lets say i bought shares worth 100USD they charged me around 130CAD and gave me 1 share. now I transferred the share to USD account and my book value now is suddenly 112USD. I have not sold the shares. how can they charge 12USD? how is it justified? They are totally screwing over the exchange. they dont reply to any messages. worst worst customer service I have ever seen. its useless to try to contact them.
Deal Addict
User avatar
Jan 16, 2007
1312 posts
1479 upvotes
If it was merely moving a USD holding from the CAD side to the USD side, then no transaction occurred, and no "double conversion" occurred. Changing the book value doesn't create a transaction or currency exchange, it's a record of how much the total number of shares cost. What exactly they would use for the book value in this scenario I do not know, but the rate and such may be specified in the transaction history for each account. Looking at the US enrollment page shows this:

Book cost calculation
During the transfer, the book cost of the U.S. denominated securities will be converted from Canadian to U.S. dollars using the previous day’s foreign exchange midrate, and as a result, it may not reflect the original U.S. dollar book cost at the time of purchase.

So that may be what they do for this as well.
🏦 Banking: Alterna Bank (1.1%, No fees), Motive Financial (1.25%, No fees)
📈 Investing: Scotia iTRADE (XGRO, No fees)
💳 Spending: Scotia Amex Gold (5pts dine/3pts drive, forex), Amex SCP (2%, rest), Brim World Mastercard (1.5%, non-Amex spend)
[OP]
Newbie
Dec 23, 2020
6 posts
1 upvote
you gave me more info than the customer center guy who i spoke to for an hour after being on hold for an hour. and he still didnt have any idea. all he kept on reapeating was you should have bought it in USD account. On top of that he cut the call. please share what is the best way to complain, if you know of any.
then Isnt that a 2nd conversion? when I bought the share they charged me FX for buying it already. now how can they convert again when I havent sold the stock? how is this justified at all? I bought the share already, it should be locked at that price (the book cost). how can they charge FX twice at 2 different dates without a transaction?

is there a way I can save my other shares at all?
Deal Addict
User avatar
Jan 16, 2007
1312 posts
1479 upvotes
I haven't had to complain so have no comment on that.

Book value is a number. It changing doesn't generate a buy or sell transaction or alter the fact that you paid X amount to buy the share in your CAD account. It's for reporting purposes. Because the USD side is in USD, your CAD book value has to be converted into a USD representation. That's just it - a representation. No currency is actually exchanged. You have not been "charged" an additional currency exchange for doing this because no buy or sell actually happened. It's the equivalent of me buying a banana in Canada for 69 Canadian cents and then going to the US, what would I say to someone there for how much the banana cost in American cents? 54. Did I actually do any currency exchange or buy or sell? Nope.
🏦 Banking: Alterna Bank (1.1%, No fees), Motive Financial (1.25%, No fees)
📈 Investing: Scotia iTRADE (XGRO, No fees)
💳 Spending: Scotia Amex Gold (5pts dine/3pts drive, forex), Amex SCP (2%, rest), Brim World Mastercard (1.5%, non-Amex spend)
Deal Addict
Jul 15, 2009
2213 posts
1360 upvotes
noviceuser wrote: Thank you for your reply. The service request was completed. so they transferred my shares from CAD to USD account but now they changed the booking price. How is the double conversion justified? There was one conversion when I bought the shares, i can understand that since I bought US shares. so lets say i bought shares worth 100USD they charged me around 130CAD and gave me 1 share. now I transferred the share to USD account and my book value now is suddenly 112USD. I have not sold the shares. how can they charge 12USD? how is it justified? They are totally screwing over the exchange. they dont reply to any messages. worst worst customer service I have ever seen. its useless to try to contact them.
The book value they display is for your information only. There's an edit button in online banking that you can use to change it to any value you want.

Top