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"Most" Affordable Method of Gifting USD from CAD to a US Resident?

  • Last Updated:
  • Aug 13th, 2021 11:28 pm
Deal Addict
Jul 13, 2007
1174 posts
687 upvotes
Toronto
yvrbanker wrote: Not exactly the RFD spirit. :) To each their own, though.

OP asked for "any way" of reducing 1-2% fee on a 10K transfer, and was willing to jump through some hoops like Norbert's Gambit. That requires a USD account in Canada.
Without opening more accounts than that, could at least convert through Norbert's Gambit, I estimate around $20 cost, and then send a wire transfer to the recipient (something like $45 at RBC) or mail a bank draft (around $10). Still a decent saving over bank's foreign exchange markup (2.5%).
That's the expensive NG!

The cheap NG: Get 1 share of a DRIPable cross-listed share like BNS from somebody in certificate form. Do an Optional Cash Purchase for CAD$10k (no commission/spread because you're buying from the corporate treasury). Transfer the share certificate to your friend. Friend deposits certificate at their broker and sells in US$. TD Ameritrade, of course, charges nothing for this. Should take about 8hours of paperwork, running around and face-palming, but cheap!

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