Personal Finance

Transfer USD between investment and bank w/o converting back to CAD?

  • Last Updated:
  • Feb 27th, 2018 3:22 pm
[OP]
Sr. Member
Feb 1, 2018
959 posts
1098 upvotes
Montréal

Transfer USD between investment and bank w/o converting back to CAD?

Hypothetical situation: Let's say you have an investment portfolio with a Canadian investment firm or bank. (For the sake of the example, let's say CIBC). Within your portfolio, you have a non-registered investment account with holdings in USD as well as CAD.

Is there any way to transfer USD funds between that investment account and a USD bank account, without having to convert back to CAD in the interim and incurring double FX fees? If so, what might that setup look like?

I suspect the answer is no, but I figured I'd ask if anyone has encountered this before.
5 replies
Deal Addict
User avatar
Nov 18, 2007
3510 posts
608 upvotes
Valleywood
For BMO Investorline, non-registered/trading account, they open two linked accounts, one Canadian currency and one US currency.

Whatever US cash I have in my trading account is visible and usable from my BMO banking website.

I can transfer US cash to my BMO US Dollar Mastercard to pay off my statement or I can walk into a branch and withdraw US funds.

In fact twice a month I deposit US cheques via my BMO bank teller, drive home and immediately do a Norbert Gambit on the US funds to convert to C$ (when I want Canadian cash).
Deal Addict
Jan 19, 2017
4782 posts
2772 upvotes
seriesofcontradictions wrote: Hypothetical situation: Let's say you have an investment portfolio with a Canadian investment firm or bank. (For the sake of the example, let's say CIBC). Within your portfolio, you have a non-registered investment account with holdings in USD as well as CAD.

Is there any way to transfer USD funds between that investment account and a USD bank account, without having to convert back to CAD in the interim and incurring double FX fees? If so, what might that setup look like?

I suspect the answer is no, but I figured I'd ask if anyone has encountered this before.
I have US$ acct with RBCDI and. US$ saving acct with ROyal Bank. I can transfer between the 2 accts online directly without converting. Since the exchange rate is better on RBCDI, I usually exchange on RBCDI and move it to the saving acct. then walk into a RBC branch to take the US$ out.
[OP]
Sr. Member
Feb 1, 2018
959 posts
1098 upvotes
Montréal
Thanks. Looks like this works with RBC and BMO, but not CIBC? Any data points about TD?
Deal Addict
May 13, 2005
3535 posts
3391 upvotes
Montreal
seriesofcontradictions wrote: Thanks. Looks like this works with RBC and BMO, but not CIBC? Any data points about TD?
Most of Canada brokers allow you to transfer USD from non-register account to Canadian banks USD account using EFT without conversion.

I see CIBC has the form Electronic Funds Transfer form for Non-CIBC Bank Accounts Only
https://www.investorsedge.cibc.com/cont ... s/9235.pdf
Member
Mar 31, 2013
229 posts
942 upvotes
Courtenay, BC
Not that it directly applies to the question, but I use Interactive Brokers, I have one account which contains both US and Can securities and dollars. Because part of their business is Forex (money trading) you get the best possible exchange rate at that time, better than any bank will give you, plus no bullshit fees. The only downfall is it can take a few days for the cash to show up in whatever account you a transferring to. Usually I want US cash for traveling in the US, so this is what I do:
-I set up a $US funds transfer from IA account to my US dollar bank account at Scotia
-I note the forex rate at that time and figure out the $C equivalent and transfer from my $C checking account to IA that equivalent
The only downfalls are the speed at which the money is available, and IA only gives you 1 free transfer in or out per month(anything more is $1 per transaction)

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