Quote:
Originally Posted by KGB
Dean, I’m confused as how exactly it works. So let’s say I hold 200 RY shares in my Canadian dollars account. I need to call my trader and ask them to journal entry them into the US dollars account? And then do the trader transfers the shares or dollar value of shares into the US account?
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Almost all accounts have both a Canadian and U.S.denominated side. Tfsa, rrsp and cash accounts all have the dual cuurency side, at least at the mjor bank brokerages and ones like Q trade. So yes, call the online support guy at your self directed account and have them do the journal entry. Make sure the exchange rate they are using for the calc matches the current quoted spot rate on say BNN or your trading account. That is how you avoid paying a 2 or 3 cent per dollar "commission" which I call a shave or undeclared fee on most fx transactions. Doesn't sound like much but it is 20 to 30,000 dollars per million exchanged.
Once the journal entry is done, the next day the shares will show up in U.S dollars on the U.S. side of the account.