1 month Trading US securities on Scotia iTrade? Watch out Reddit      

This may be obvious for some people but I did not realize the crucial mistake I was making and in doing so, have lost probably thousands unnecessarily in FX conversion over the past few months.

Every iTrade account comes with a CAD and USD side. You have the ability to buy and hold USD securities through the CAD side. However, when you go to sell the security, you will have to convert it back into CAD.

For example, on June 10th I sold Facebook and had to convert back to CAD since I owned it in the CAD side of my TFSA. I sold the shares for a 1.192 FX rate.

On the same day, I bought another US security with my CAD but paid 1.230 as an FX rate. This is a spread of 3.18%. The trade was around $10,000 CAD so I essentially paid $318 in FX fees + commission for the trade.

The moral of the story is – learn from my expensive mistake and if you plan on trading US securities, do it in the USD side of whatever account you’re using. If you currently hold US securities in the CAD side of your account, you can call iTrade and they will “re-journal” them to the USD side, or you can do it yourself by submitting a securities transfer e-form under the “additional services” tab.

submitted by /u/Feltzinclasp5
[link] [comments]

·

What is Market Insider?

Market Insider is a business news aggregator for traders and investors that proposes to you the latest financial markets news, top stories headlines and trading analysis on stock market, currencies (Forex), cryptocurrency, commodities futures, ETFs & funds, bonds & rates and much more. We do not create or publish our own content or copy full articles from other sites. Market Insider works with public RSS feeds of best business news websites, personal blogs and provides automatically generated list of financial news links directly referring to its sources.