Rbc direct investing forex fees

Rbc direct investing forex fees

By: CroNiK On: 17.06.2017

Jump to main navigation Jump to main content. Published Friday, May 06, 6: Last updated Monday, Sep. An increasing number of choices are emerging for investors who want to minimize the stiff foreign exchange fees that apply when buying U. There are now four online brokerage firms that offer U.

Investors with a non-registered account have it easy if they want to buy U. They just need to set up a U. After that, they can buy and sell stocks and receive dividends with full discretion about whether to keep everything in U. In registered retirement savings plans and registered retirement income funds, online brokers typically convert all U. If you sell a stock or receive a dividend, the proceeds get converted automatically into Canadian dollars, at a high cost.

Forex charges are a profit centre for brokers and they can add as much as 0.

Do-it-yourself investors: Watch those online broker fees - The Globe and Mail

The convenience of a U. When you contribute money to your U. From there on, you can transact in U.

Sell a stock and keep the proceeds sitting in U. Receive dividends and let them pile up as U. Questrade became the first online broker to offer U. BMO InvestorLine says U. Questrade and RBC Direct Investing charge no fees for their U. Mid-rate means a midpoint between wholesale buy and sell rates. Your purchasing power in the U. The appeal of the U. Note that all cash in the U.

rbc direct investing forex fees

One of the biggest issues when investing in U. This is important because brokers have separate exchange rates for buy and sell transactions.

Online Investing and Trading - RBC Direct Investing

If they applied these differing rates to a series of buy and sell orders, the foreign exchange fees would be massive. The benefit of having a single rate applied to all transactions is that forex fees on buys and sells cancel each other out. The result is that clients pay fees only on the net amount of U. Regardless, while some firms require you to telephone a representative to request a wash trade, TD does it automatically.

Clients can set this process on automatic in their RRSP accounts, and they can arrange to redeem their U. The practice of washing trades at other firms varies a lot, so check before buying.

For example, you can use U. ET on the day you make your trades. Mind the foreign exchange fees if you jump on this trend. Here are three ways online brokers have of helping clients limit the foreign exchange costs of trading U.

TD Waterhouse prepared this example of how it would carry out a wash trade for a client placing multiple buy and sell orders of U. TD Waterhouse automatically covers the net difference using the client's U. Stock trades take three business days to settle, while money market fund trades take a day; in this case, the stock trades were made on a Wednesday.

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RBC Direct Investing vs Vanguard, Ameritrade, Fidelity, Schwab

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