Canadians can pay as much as 2.5 %
in currency conversion fees which are hidden in what is known as «the spread».
End result is about $ 700 lost to TDW
in currency conversion fees.
from above: «Unlike some of their discount brokerage peers, CIBC Investor's Edge does not have US dollar registered accounts so clients will have to factor
in currency conversion fees into their costs if they plan on trading US - listed securities.»
Not exact matches
Cash Equivalents - This is any such investment turned into
currency without losing
in the
conversion price because of additional
fees.
Travellers using Get4x to search for and compare rates can save on
conversion fees when they lock
in a favourable rate through a
currency booking.
Consider using one of the credit cards issued
in your home country while you're
in the U.S. Pick the one with the lowest
fees for foreign transactions or
currency conversion.
Final prices are
in USD and may be a subject to applicable foreign transaction
fees and
currency conversions.
RBFCU does not apply a
fee to perform
currency conversion on transactions processed
in a foreign country.
Our broker charges a
currency conversion fee at 0.1 % of the transaction amount if you invest
in a non-USD
currency.
In addition, the money market account imposes a 1 percent cross border and / or
currency conversion transaction
fee.
Plus, using a credit card that doesn't have a foreign transaction
fee is usually cheaper than using the
currency conversion services at retail stores, banks, and airports, which tend to charge high
fees and could be inconsistent
in their
currency calculations.
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.
Discount brokerages that do not offer clients the option to have US dollar accounts will usually charge
currency conversion fees on transactions that take place
in US dollars (for example if a client buys shares of a company from a US listed exchange).
For me this avoids all
currency conversion fees because I'm actually paid
in US dollars.
They allow you to maintain a separate US balance
in registered and non-registered accounts, so there are no
currency conversion fees.
Foreign transaction
fee of 1 % of each transaction
in U.S. dollars whether the transaction does or does not involve a
currency conversion
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.
Usually, you can «wire» transfer money from your BoA account to the account back home, but that is usually comes at a
fee of about $ 30 - $ 50 per transfer (
in the US, additional
fees may be charged at the receiving end +
currency conversion costs).
You can chose to send («wire») the money
in source
currency or
in US $; the former, the target bank
in the US does the
conversion (so pick one that adds no or little spread); the latter, the sending bank does the
conversion (so ask about their
fees / spreads).
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.
Exchanging US funds into Canadian dollars
in PayPal is not ideal because PayPal charges a steep
currency conversion fee of 2.5 %.
In your example of the CAD - hedged portfolio posting slightly lower returns did that include possible
currency conversion fees for the unhedged portfolio?
Although the name is long, basically the service automatically routes the funds required to settle the transaction through a US dollar money market fund
in such a way that a client doesn't pay the foreign
currency conversion fee.
In addition to the exchange rate, PayPal also charges a 2.5 %
currency conversion fee to exchange funds from one
currency to another.
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.
Plus, using a credit card that doesn't have a foreign transaction
fee is usually cheaper than using the
currency conversion services at retail stores, banks, and airports, which tend to charge high
fees and could be inconsistent
in their
currency calculations.
In my experience, the
currency conversion fee has been around 5 % worse than that used by the card scheme.
When you do charge
in a foreign
currency, while Visa or Mastercard do convert at a reasonable exchange rate, your bank may apply a 3 % or so
conversion fee on the converted amount, tending to even things out.
Assuming you have one of the many, many travel rewards credit cards that do not charge you a
currency conversion fee, and you should have at least one, there is no reason you would ever want to pay
in anything other than the local
currency.
(Note: Not all issuers charge a
conversion fee in addition to the 1 % charged by Visa or MasterCard, so it might pay to shop around for a credit card with a fair foreign
currency policy.
These used to be called
currency conversion fees because card issuers said they imposed them to cover the cost of converting a foreign transaction into U.S. dollars, but now they're called foreign transaction
fees because they're charged even for deals made entirely
in dollars.
If you choose to deposit a fiat
currency that isn't supported by CEX.IO, keep
in mind that your bank may charge you a
currency conversion fee.
Any withdrawals sent
in currencies that are not US dollars are also subject to
conversion fees.
This chicken - and - egg scenario
in which bitcoin co-exists with existing (and more commonly accepted) fiat
currencies means that
currency conversions must still occur at each end of the transmission, which then requires intermediaries
in the form of bitcoin exchanges and the
fees they will necessarily levy.