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US dollar transfer question (previously Norbert Gambit)

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  • Jun 8th, 2020 2:58 pm
[OP]
Sr. Member
User avatar
Dec 28, 2010
637 posts
286 upvotes

US dollar transfer question (previously Norbert Gambit)

TD offers the option to transfer CAD to USD and v.v. using DLR and I ran into some questions before I go ahead and do this:

1. The TD rep I spoke with stated that I can do the transfer in a TFSA. I have one with both currencies. All online instructions talk about an RRSP account. Does this really matter, in other words, does it need to be an RRSP account? I haven't moved any money into the TFSA or RRSP so this is somewhat important for me to know.

2. Once you have the money transferred, would you then move the cash USD to a TD US account in order to transfer it somewhere else, or would Waterhouse transfer it directly to an account like TransferWire or PayPal? Or are there other ways of setting this up without too many fees?

Thanks :)
Do you want to meet the love of your life? Look in the mirror. | Byron Katie
6 replies
Sr. Member
Jan 6, 2015
997 posts
297 upvotes
I think you can do that in TFSA, but I am sure whether you can do it by yourself, because I did that , I called TD for convert DLR to DLR.u.
Question 2, no idea. All my US dollar in TD, no TransferWire or PayPalDisappointed But Relieved Face
Member
May 4, 2010
260 posts
246 upvotes
Ottawa
1. It shouldn't matter. Once your trade settles you can call them to transfer/journal to the other account. Or try a securities transfer through WebBroker: https://www.reddit.com/r/PersonalFinanc ... d/ebutox2/
2. Wait, so you want to contribute CAD into your TFSA, convert to USD, and then transfer it out as soon as possible?
[OP]
Sr. Member
User avatar
Dec 28, 2010
637 posts
286 upvotes
introspect wrote:
2. Wait, so you want to contribute CAD into your TFSA, convert to USD, and then transfer it out as soon as possible?
Yes, that is correct. Unless there is a better way of doing this (avoiding the commission fees).

I can also open up a USD account with TD Trust. My TD bank rep says the normal conversion fees are in my favor because I'm with Waterhouse, but a bank is still a bank and I was hoping to find a better way of converting CAD to USD.
Do you want to meet the love of your life? Look in the mirror. | Byron Katie
Member
Jan 28, 2010
297 posts
40 upvotes
Montreal
1- yes you can do it in TFSA account. TD now offers security transfer on their website , so you dont need to call and can do the whole process online by yourself (just note that you will have to wait your purchase of DLR.TO to be settled to do security transfer, which takes 2 business days).

2- once the transfer is done, you will have your converted USD in account where you transferred DLR.TO to DLR.U and sold DLR.U, which is typically the USD side of your TFSA account.
Please make sure you have SAME TFSA account that has both CAD/USD sides.

What is your objective? if you want to send US cash somewhere else, then keep in mind that if you do it in RRSP, you will be subjected to withholding tax and if you do it in TFSA, you will lose your contribution room for the year.
in any case, if you need to send it to somewhere else, you will need to transfer money from your TFSA account (where you perform NG) to TD USD account then do whatever you want to do with the US Cash.
Member
May 4, 2010
260 posts
246 upvotes
Ottawa
I guess it's okay if you have the contribution room for it. It's just there might be some paperwork to perform a withdrawal from a registered trading account. You'll want to ask a rep about the withdrawal process. Doing the gambit with non-registered accounts bypasses all that.

That said, if it's a one-off and you're going to use TW to send money out anyway, going with TW for conversion would be less steps and still give a better rate than the banks.
Sr. Member
Sep 18, 2019
530 posts
409 upvotes
TDDI question, I have transfer DLR.TO from my CAD cash account to USD cash account. However, when I try to sell it in DLR.U but the system is not allow. Did I do something wrong? I got the following message and anyone can help.

"The Market selected is not eligible for Market or Stop Market Orders. Please select another price type. For assistance, please call TD Direct Investing at 1-800-465-5463. [ 43982 ]"

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