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Old 04-04-2016, 06:31 AM   #61
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exchange rate

Ralph,

Thanks so much, that is great news. And that is a good question, did you check to see if the exchange rate from Vanguard was comparable to that given by others? I would guess that it was.
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Old 04-04-2016, 03:51 PM   #62
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Quote:
Originally Posted by LJY View Post
Ralph,
how good was the exchange rate you received when exchanging at Vanguard? Did you compare it with XE or others on the same day?
We were very happy with the rate. Our rate on Feb. 12, 2016 was $1.3675CA per US$. Looking at XE history, it says $1.385CA per US$ is the close on Feb 12th, so about 1.25% difference. I know we checked a few other places, I believe including what ETI could get, and they were all in the 3-4% range.
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Old 04-04-2016, 04:25 PM   #63
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Man, I'd be thrilled with that rate. Ours was $1.245 last March.
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Old 04-04-2016, 09:04 PM   #64
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Quote:
Originally Posted by Ralph & Paulette View Post
We were very happy with the rate. Our rate on Feb. 12, 2016 was $1.3675CA per US$. Looking at XE history, it says $1.385CA per US$ is the close on Feb 12th, so about 1.25% difference. I know we checked a few other places, I believe including what ETI could get, and they were all in the 3-4% range.
Ralph, I have a brokerage account with Vanguard and called them. The rep told me to download a the wire transfer form and on it it says this:

International wires
International wires will be sent in U.S. dollars.
To send an international wire in U.S. dollars, you must provide the name of the U.S. correspondent bank used by the international bank and the U.S. correspondent bank’s SWIFT code.


Did you find another way to get Vanguard to wire funds in Canadian Dollars?

Thanks!
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Old 04-04-2016, 09:24 PM   #65
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Didn't have to download a form with our account- M.S. bought foreign currency with our funds and had it banked in our account. Then when we needed to wire it they did.
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Old 04-04-2016, 11:07 PM   #66
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I guess our experience was unusual compared to all the methods described here. I wrote a check (yes, a personal check), and mailed it. Escape received it about 4-5 days later, and the next day I got a revised build sheet showing the amount paid in CAD after Escape's bank did the conversion. Done. Could I have gotten a better rate with a different method? Don't know. Escape's bank gave me a very favorable rate compared to the current exchange rate I looked up online. And, no hassle is equal to money in my book.
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Old 04-05-2016, 08:35 AM   #67
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That's exactly what we did Robert. The goal is to have good timing, and writing your own check is simple, easy and timely.
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Old 04-05-2016, 01:26 PM   #68
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This probably won't affect anyone using FXC to hedge and buy Escape in a year. But I learned that FXC does come with some load fees of 0.4% which is about $100+ or so in costs per year for the price of an Escape trailer. So, if you are planning to use FXC to hedge and save CAD for longer terms, this may be a bad idea.

For those who have experience with Forex, what is the commission fees like per trade on USD/CAD ?
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Old 04-05-2016, 04:24 PM   #69
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Quote:
Originally Posted by thoer View Post
The rep told me to download a the wire transfer form and on it it says this:

International wires
International wires will be sent in U.S. dollars.
What's the form number you're looking at? I didn't have to use a form, but I searched for a form on Vanguards website and found this one https://personal.vanguard.com/pdf/s140.pdf?2210090300 that has a box that says "Type of currency If no currency is provided, the wire will be sent in U.S. dollars":
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Old 04-05-2016, 04:47 PM   #70
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Quote:
Originally Posted by Ralph & Paulette View Post
We were very happy with the rate. Our rate on Feb. 12, 2016 was $1.3675CA per US$. Looking at XE history, it says $1.385CA per US$ is the close on Feb 12th, so about 1.25% difference. I know we checked a few other places, I believe including what ETI could get, and they were all in the 3-4% range.
As expected from Vanguard, that looks to be a good rate similar to XE.com .. I believe the XE history is just the mid-market rate, not actual consumer rates we'd get.

I called a broker selling forward contract.
The pros: leverage (10% down), good rate, asset/agreement stays in your name, you can continue to earn with other 90% of funds
The cons: minimum $30,000 USD contract... which may be over what we'd need for Escape, taxable if there are gains, possibly more funding requirement if CAD gets too weak

In the end, I think the best option for me is to open a CAD$ account in foreign country, use XE or similar service to deliver CAD to that account, and then electronically wire money to ETI when time comes.
The pros: asset stays under my name, ability to wire electronically to ETI, low costs of < $100 wire fees, good rate, not much taxable gain possibilities
The cons: CAD$ interest is a measly 0.6% vs 0.9% USD, 100% of funds outlay now to lock in rate

Thanks all for your help!
I know all this may be a headache for some folks, but it's a learning experience for me to understand this possible class of future investments. while minimizing risk and making sure I don't have unexpected gains which could mean losing certain tax-sheltered benefits.
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