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> Choose a reasonably liquid interlisted stock. The large Canadian banks and resource companies are usually good choices. The simultaneous purchase of such a st
by tedmiston 10y ago
> Choose a reasonably liquid interlisted stock. The large Canadian banks and resource companies are usually good choices. The simultaneous purchase of such a stock in one country and sale of the same stock in the other country will effectively convert one currency to the other at close to the spot rate. The investor's cost is two trading commissions and some bid-ask spread, which is usually much less than the standard 1% (or greater) fee at a bank or broker.
That's interesting. I wonder if any of the commission-free brokers like Robinhood allow one to carry balances in multiple currencies.
How are there no capital gains tax on the sale? Is it moot because you make no / minimal profit?
- tacostakohashi 10y agoAt least from a US capital gains perspective, that would be a wash trade.
- loeg 10y agoWhat do wash trades have to do with capital gains? A wash sale relates primarily to capital losses, and is distinct from a wash trade.
- loeg 10y agoEssentially no capital gains on the sale because you expect no price movement over the time period. It may be non-zero but should be insignificant.