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Old 04-02-2016, 11:07 AM   #41
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TOronto Dominion Bank might be a good choice to research, as they have extensive operations in both countries. Whether the person knows what they are doing is another matter.


Fun story, A couple years I tried to exchange C$ for US$ at a bank in southern Oregon. The teller avoided the question of why he could not do it, but indicated I needed to go to a "clearing bank" in the regional major city (Wells Fargo, Brookings). Fact or fiction, no idea as I was not going to backtrack 60 miles for $200.
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Old 04-02-2016, 11:25 AM   #42
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At the airport in Dominican Republic there were employees from all inclusive resorts willing to sell you $20 in loonies and toonies for $5 US. Tips they had received from Canadians.
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Old 04-02-2016, 11:28 AM   #43
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Wonder if those Domincan Employees could handle exhanging 30,000 US. If so, might be worth a flight. Oh, then there's customs issues, and the FBI tail you pick up when landing back in the US.
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Old 04-02-2016, 04:29 PM   #44
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I bought FXC to eliminate currency fluctuation risk. It's true that you could have capial gains, but that is still better than not having locked in the rate if it winds up being worse when it comes time to pay. And the capital gains cuts both ways. If you guessed wrong and the rate is even better (lower $CA) the tax savings from the capital loss will help to blunt the pain a bit. Also, I went through Vanguard who did not charge any exchange or wire fees. The rate I got was the spot rate at the time they did the wire.
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Old 04-02-2016, 04:37 PM   #45
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Whats "FXC" ? Thanks
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Old 04-02-2016, 04:43 PM   #46
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Whats "FXC" ? Thanks
It is an ETF - exchange traded fund - that only contains Canadian Dollars FXC: Summary for Guggenheim CurrencyShares Canad- Yahoo! Finance
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Old 04-02-2016, 05:06 PM   #47
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Wonder if those Domincan Employees could handle exhanging 30,000 US. If so, might be worth a flight. Oh, then there's customs issues, and the FBI tail you pick up when landing back in the US.
You do realize Greg that at the exchange rate of $20 in loonies/toonies for US$5 that Glenn quoted that if it were possible you would have another problem, how to carry $120,000 worth of coins

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Old 04-02-2016, 07:11 PM   #48
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The CAD to USD exchange rate is closely tied to the price of oil - as oil goes down, so goes the loonie. I expect the price of oil to drop this year as supply is still higher than demand and Saudi / Iran are not cutting supply.
Very true but as history tends to repeat itself all it takes is one little misunderstanding with one of the main oil producing counties and a couple of oil fields get blown up and all bets that the Canadian dollar will stay low are off ;-)

Some economic types would also suggest that one other reasons for the free fall the Canadian dollar took early winter was due to the BIG change to the counties leadership in late fall and their decision to run a deficit. The concerns over the man with the top job have started to die down a little now.
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Old 04-02-2016, 07:16 PM   #49
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Fun story, A couple years I tried to exchange C$ for US$ at a bank in southern Oregon. The teller avoided the question of why he could not do it, but indicated I needed to go to a "clearing bank" in the regional major city (Wells Fargo, Brookings). Fact or fiction, no idea as I was not going to backtrack 60 miles for $200.
I recently had to do a large exchange from C$ to US$ and found I saved a couple of points by using a major Currency Exchange vs our major banks. They could/would do the exchange in cash or make it out in a cheque if required.
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Old 04-03-2016, 12:46 AM   #50
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I received a message from Tom asking about the exchange rate when buying the FXC fund vs. exchange rate when doing the wire to ETI, but couldn't send him a private reply, so posting it here hoping he'll see it. And if anybody else had the same question, hopefully it will answer it for them too.

So, question was "The part of your post puzzling me the most is where you state you got the spot rate at the time Vanguard wired. Is it wrong to assume the rate one receives is the rate at the time of purchase of Canadian dollars, and not at the time funds are wired if it's a later date?"

So, the FXC purchase is not Canadian dollars that you can wire directly to ETI at a later date. It is just an ETF that invests in Canadian dollars, so effectively "locks in" your exchange rate. If the Canadian dollar goes up resulting in your trailer costing $1000 more, the value of your FXC holding also goes up by $1000, which will cover your increased cost (except for taxes on the $1000 gain). But you can't use FXC to send funds to ETI directly. You have to sell the FXC fund, which gives you US dollars again. Vanguard then takes the US dollars, converts them to Canadian dollars and wires that to ETI.

The great thing about using Vanguard to do the exchange and wire, even if you don't want to use FXC to hedge your currency fluctuation risk, is they don't charge an exchange fee. If you do the exchange through your bank, or if you wire the money to ETI as US dollars, your bank or ETI's bank will convert them to Canadian, but will charge you a fee - typically 3 or 4%. Eliminating that fee could easily save you $1000 in exchange fees.

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Old 04-03-2016, 10:59 AM   #51
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Hi Ralph. Thanks for answering my question and sharing the information with others as well. (I'll have to figure out how to receive private messages for future use.) Your FXC approach sounds good to me. I'll call Vanguard tomorrow. -Tom
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Old 04-03-2016, 11:36 AM   #52
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Canadian vs US dollar

There are many forecasters and they are all a little different, google forecast for Canadian vs US dollar and find one that seems like a solid source. What I find is that there may be some small ups and downs and this year looks like 1.30s are fairly consistent. We took them a big check in January when it was a bit lower and we are hanging awhile until we get closer. Everyone has a different comfort zone, find yours with a little research.

here's one source: Canadian Dollar to US Dollar Forecast For 2016 and 2017Â*-Â*Long Forecast
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Old 04-03-2016, 12:41 PM   #53
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I charted the link you provided. Here is the chart below. It looks like the longer we wait to convert to loonies, the better
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File Type: jpg CAD to USD.jpg (99.0 KB, 30 views)
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Old 04-03-2016, 12:48 PM   #54
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I charted the link you provided. Here is the chart below. It looks like the longer we wait to convert to loonies, the better
At least if that prognosticator is correct. My experience is that "experts" about markets are right about 50% of the time.
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Old 04-03-2016, 02:06 PM   #55
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At least if that prognosticator is correct. My experience is that "experts" about markets are right about 50% of the time.
Find a better expert.
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Old 04-03-2016, 02:10 PM   #56
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Find a better expert.
Do they exist?
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Old 04-03-2016, 02:20 PM   #57
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I do my research and then listen to most trusted expert, my gut!!
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Old 04-03-2016, 06:52 PM   #58
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Ralph, so after you sell the FXC at Vanguard it is USD in your account. Then you have Vanguard convert to CAD and they wire transfer directly to ETI's account at ETI's Canadian bank, is that correct? If Vanguard does not charge an exchange fee, what fees do they charge? Is there only a wire transfer fee and nothing else? If so, how much does Vanguard charge for the wire transfer? Does ETI's bank charge any fees for accepting the transfer? Thank you.
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Old 04-03-2016, 11:57 PM   #59
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Ralph, so after you sell the FXC at Vanguard it is USD in your account. Then you have Vanguard convert to CAD and they wire transfer directly to ETI's account at ETI's Canadian bank, is that correct?
Correct.

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If Vanguard does not charge an exchange fee, what fees do they charge? Is there only a wire transfer fee and nothing else? If so, how much does Vanguard charge for the wire transfer?
There wasn't even a wire transfer fee. They offer different service levels based on your assets at Vanguard (see https://investor.vanguard.com/what-w...ts-at-a-glance), but what I was told by my Vanguard Rep was no-fee exchange and wire transfer services are provided to all their customers. Having said that, it would probably be best to confirm with your Vanguard Rep.

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Does ETI's bank charge any fees for accepting the transfer?
I don't believe there are any fees from ETI's bank to receive the wire transfer. If there are, I would guess ETI pays them because I didn't see any.
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Old 04-04-2016, 01:27 AM   #60
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Ralph,
Thanks for sharing your experience. Sorry if I missed it, but how good was the exchange rate you received when exchanging at Vanguard? Did you compare it with XE or others on the same day? Thanks

All,
I found at least 2 other options.. probably won't work for most people:

Option 1) I convinced a family friend in Canada who's willing to hold my money in her acct and pay ETI when needed. I will give her any interests generated so she can pay any Canadian taxes.

Option 2) Have one of my relatives open a CAD$ account in another country and wire to that one.
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