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You can open a US bank account (I use Harris Bank, since they're owned by BMO) and withdraw USD from paypal to there. I then write a cheque to move USD across
by cperciva 11y ago
You can open a US bank account (I use Harris Bank, since they're owned by BMO) and withdraw USD from paypal to there. I then write a cheque to move USD across the border, and use VBCE to convert USD to CAD at market - 35 basis points (aka. about 2% better than what Paypal offers).
- thesimon 11y ago> I then write a cheque to move USD across the border, and use VBCE to convert USD to CAD at market - 35 basis points (aka. about 2% better than what Paypal offers). Transferwise might be cheaper/easier
- cperciva 11y agoNot even close. Transferwise charges a fee of 0.7%. VBCE is half of that.
- papercrane 11y agoI would think using Norbert's gambit with a discount broker would be the cheapest way to convert large amounts of currency (e.g. buy DLR-U.TO, sell DLR.TO.)
- cperciva 11y agoNorbert's gambit is good, but not free - you still lose about 20 bp to market spreads using DLR.TO. If I was moving more money I would use that (possibly with a more heavily traded stock) but the marginal advantage wouldn't be worthwhile for my volume.