Anyone changing $C to USD's

[boarderbloke]

Just wondering if anyone here is topping up a USD account or exchanging money from CAN$ to USD's? What rates are banks or brokers taking? Just checked one place on Fri. and they were taking 5% off the market price(for $1000 cash) Seemed like a big discount to me, but it was just a local CU. Anybody moving six figures or more to a USD account, what rate can you get? NOT ready to exchange yet, but want to get ALL the necesary details down first before I make a move.

[oneoff]

There are few financial moves simpler than getting very affordable exchange rates on more than $50,000 US dollars.
The first step is to get a US dollar account in your local bank (yes credit unions all call themselves banks too).
It could cost you a buck a month service fees. This will entitle you to withdrw US greenbacks from your US funds. You may have to book ahead for withdrawing larger amounts than they normallly keep on hand; but this is no great hardship for an organized person. You can also arrange for a supply US fund cheques (which cost about $0.25 each) and are acceptable and can be used with little difficulty across the line. They have "US Dollars" embossed on each one. There is liable to be a reasonable service charge at your bank for each cheque used (eg. a dollar each)
Then one of the least publicized secrets comes into play. If you talk to your local "banking" person at the very instant you like the current exchange rate for Canadian to US dollar rate; and you have enough Canadian dollars on hand; and you want to exchange for at least $50,001 US dollars; and the "bank" has agreed to process your transaction for 0.25% or less; then you will be very satisfied with saving some big bucks. They phone in to a broker (probably at Credit Union Central, Regina); and the deal is done in seconds.
And yes; 0.25% is a going rate of banks and credit unions for more than $50,000 amounts. Those institutions all know it; but there is so much more in it to charge suckers; those in a hurry and unfortunately anyone who doesn't have $50,000 of loose change.
But thats the way of our current capitalistic system isn't it?

[LWeber]

HSBC - Min. $20,000 not $50,000

They take one fifth to one quarter percent.

Anything under $20,000 you can negotiate.

If your bank won't negotiate - open a USD account with someone that will.

5% is like paying list price for a vehicle.

[cottonpicken]

I dont think buying us dollars is the right thing to do.

[parsley]

http://www.bloomberg.com/news/2010-11-06/treasury-yields-tumble-to-records-on-fed-s-plan-to-purchase-600-billion.html


I agrree with cott. I predict $1.00 will be worth .80 cents not far down the road. Pars

[SASKFARMER3]

I agree with cotton right now at this time and with the huge amount of debt the USA is carrying I wouldn't bet on them just yet. Obama isn't the man and will be a one term president. Simply when going to USA or buying equipment there its easy do money transfer. Use Visa etc your charged the days rate. But just set a account up in ND in Minot works to.

[SASKFARMER3]

Remember your house in USA that you paid 100000 for on a deal could be worth 75000 or less shortly.
But when it gets to 75000 or less that's the time to look at USA but then you better hope you have dual citizen ship because a tax on profit from a home sale for foreigners will be coming.

[SASKFARMER3]

Remember your house in USA that you paid 100000 for on a deal could be worth 75000 or less shortly.
But when it gets to 75000 or less that's the time to look at USA but then you better hope you have dual citizen ship because a tax on profit from a home sale for foreigners will be coming.

[parsley]

Astute observation Sask.

Don't be wooed by the little Pres O's main street talk...goin' and huntin' and talkin'

No G's.

He'll tack on G's to cell phone roaming, and winter homes and airport fees...etc.

They will become protectionist, looking after their own, (Note the RIM thread) and tax foreign ownership hard.
Pars

[parsley]

They won't tax US citizens as hard as foreigners, will they?

http://www.redstate.com/jeff_emanuel/2010/11/05/looming-obama-tax-increases-will-hit-working-americans-right-where-it-hurts-most/

[oneoff]

Mastercard and Visa also charge you big time to exchange from one currency to another. Its just as bad as your local bank or Credit Union on small amounts.
The whole point is that just about everybody pays about 2.5% above the exchange rate to get another countries coin of the realm. You can even get caught cashing a US cheque to get Canadian money; and once again paying to get some US dollars. From my experience; thats the real world for the average consumer. Don't worry; I know that the few smart people have had ways around these rip offs for years. Still its true that the ordinary consumer has a maxed out set of credit cards and not $20,000 to $50,000 of spare cash.
You'd see my points if you could grasp the plight of cash strapped and debt burdened persons that outnumber the financially savy persons.
As far as not buying US money at this time; why wouldn't you cover any current US purchases by prudently minimizing exchange rate fees. The Canadian government has deliberately knocked the props out from under a near par dollar about 4 times in the last year. It sure wouldn't suprise me if it happens another time or twenty. When the Republicans get more strength in government; the "industry" will try to make it look like their recovery is inevitable.
I agree that the US economy is on the ropes on many fronts; but they are still an elephant; and even sick ones should be treated with respect and watched closely.

[oneoff]

Oh!
I am told that exchange rates and fees across the line are commonly even higher than we are used to in Canada. Impulse buying and then trying to barter a good conversion exchange rate (including the fee for the transaction) is liable to be easier said than done.
You try wiring money (or equivalant) on a moments notice when you don't have money on hand in that same institution and the first time you do it you will wonder what else can go wrong.
Sure there are ways around everything; and when everyone knows exactly how the international money system should work there should be no problems. But the clerk in Menards or the machinery salesman; and even their supervisors aren't bank managers or better.
Still it is well worth learning the lessons to buy whole classes of merchandize at about 20% to 50% discounts.
And no there isn't duty on anything produced in the US or Mexico (except supply managed commodities; clothing and some other exceptions you run into once in a while.) Their US customs also seems to be on a kick to thwart export of US ammo; strategic computer software and whatever else they might be worried would contribute to their insecurities. Best to avoid those classes of goods; no matter what your intentions. US customs can (AND DO) their own searches just before you get to the Canadian customs offices. Best to keep yor nose clean.

[parsley]

RBC offers a free service for US money orders, each one under $9,999. No fees if you have a certain kind of account.

Buy the money order with Can$ and the money order is made out in US dollars.

We use it all the time. Pars

[oneoff]

Of course I forget liquor and cigarettes. They aren't necessities anyway.... are they?
Saskfarmer... Do the math on credit cards and their day rates and tell me if there isn't als about 2.5% extra owed by you for their exchange rate fee. And no; that is on top of the merchant's fee which we are all paying in the price of the merchant's goods.
Opening an account in a US bank is problematic in some ways. You need a social security number and our SIN (Social Insurance Number) isn't what they want. Without US identification they won't give you their credit card; but you can get a debit card. Along with a US shipping address for your eBay (etc. ) purchase; you can get a confirmed shipping address with Paypal; and then you're home free to be your own importer of personal goods into Canada. Canada customs frowns (but usually not too hard for relatively small and infrequent imports) on "business importing". Then you're in the realm of brokers (or some extra paperwork on your own part); a business numbers; codes etc. Its best to check and double check everything prior to the actual deal; because there are some things that you would never think are prohibited because of the most implausable logic (eg. daytime running lights on vehicles that could be turned on by the vehicles computer to turn it into a hearse if you were so inclined. Problem is that the vehicle also knows it was not destined for Canada and thus this function can never be activated). Similarly for anti theft functions that only applied to Canadian produced vehicles (initially at least).
And yes; farming is considered as a business by Canada Customs. Go figure
Still programs like "Own use import" were very refreshing in their day. Too refreshing to keep.

[SASKFARMER3]

One off i don't have time to discuss with you the US dollar but how come the folks for 22 years have had a checking account in Phoenix and also have a us visa card etc. For 22 years the checking account really simple.