Best Ways to Convert Large Amounts of USD to CAD or CAD to US

[terry890]

Buy canadian interlisted stocks on new york with US dollars. He will never overpay for these stocks, because the arbs always keep the prices in both markets picked to the bare bone, which is the wholesale exchange rate that our investor wishes to obtain. In every case, the investor would be purchasing canadian stocks that he wishes to own for their own merits. The only wrinkle is that he's buying them on new york.

when these purchases settle, the investor would have the stocks journalled to his canadian account. He would then, from time to time, sell some of these stocks as needed, for proceeds in canadian dollars. The foregoing is not a perfect gambit, and there is a market trading risk. However, seen from the perspective that the investor made a valid investment decision to buy XYZ in the first place, he is bearing that market risk at all times anyhow.
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I have tested this with my BMO investorline account, I bought RIM in Canadian dollars at TSX stock xchange, I then called the brokers to journal over my Canadian RIM to my US account under RIMM. then after 24 hours, I sold it and have it settled in my US account which is in US dollars.

Paid $0 in exchange rate, only paid for the two trade.

 

[风 雨]

Thanks for sharing your idea and experience.

Did BMO investorline charge a fee to move your stock? I think some stocks listed in US are in the form of ADR (American Depository Receipt). In your case, is it ADR or actual RIM shares?

 

[terry890]

Thanks for sharing your idea and experience.

Did BMO investorline charge a fee to move your stock? I think some stocks listed in US are in the form of ADR (American Depository Receipt). In your case, is it ADR or actual RIM shares?

Jounal the stock from US to CAN or CAN to US are free of charge.

not all stocks can be journaled, only some of them, you will have to talk to your broker to find out.