These accounts would allow investors holding US - dollar assets in their RRSP accounts to
avoid currency conversion fees when buying and selling (for brokers that don't allow «wash trading») and to keep the dividend received from US - listed holdings in US dollars.
For
me this avoids all currency conversion fees because I'm actually paid in US dollars.
Not exact matches
Find out the cheapest way to send money to Thailand and
avoid bank
fees and
currency conversion fees.
To
avoid the foreign exchange
conversion fee my broker (Questrade) typically charges (2.5 %) I buy shares in an ETF that tracks the US
currency.
The ability to have USD registered accounts is a sought after feature with many investors that trade / invest in many US listed securities and who want to
avoid some of the steep
currency conversion fees imposed by brokerages.
Although you might think that charging the expense in your home
currency would be a better idea (to
avoid your credit card's foreign transaction
fees), you'll likely be charged an even greater
currency conversion charge (plus a hidden
fee) by the vendor.