Sunday, 13 January 2008

Questrade allows direct U.S. dollar trades in RRSP accounts

My current brokerage, Questrade Inc., became the first Canadian discount brokerage which would allow U.S. dollar holdings and direct trades in RRSP accounts. You can read about it here or here. It means that from now on you do not have to convert your account funds from Canadian dollars to U.S. dollars and back when you buy and sell U.S. stocks.

The traditional round-trip FX premium for conversion at Questrade is 100 basis points, and this fee is even larger at many other Canadian brokerages. If you choose an option to do your U.S. dollar transactions directly in U.S. dollars that you hold in your RRSP account without FX conversion back and forth in each U.S. stock trade, then the only FX fee you pay is a fixed $5 fee on the day during which a U.S. stock trade occurs. You can do more than one USD trade during this day, but the fee stays fixed. For those individuals who regularly trade large USD positions, this is very convenient because such users were losing hundreds of dollars on the traditional FX conversion premium.

A shameless plug: Just to remind you, if you want to receive a $50 trading-fee credit when you open an account with Questrade, you can apply through a direct referral program by clicking on this link or by citing BEIT as a referral name when completing your application.

Questrade: Open a Questrade Account Online  Start Trading & Investing

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