TD Waterhouse lets you park your US cash in US Money Market funds. You have to call TD every time you trade a US security inside of a registered account to either buy or sell US money market funds to cover the trade.

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Originally posted by pratickm
Only one brokerage (Questrade) allows a USD RRSP.
So the issue with trading US listed securities inside a TFSA will be the forex conversion hit with every trade in/out.
Trading as frequently as you are, the forex spread will wipe out a lot of your gains.

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Quote:

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Originally posted by Iceberg
TD Waterhouse lets you park your US cash in US Money Market funds. You have to call TD every time you trade a US security inside of a registered account to either buy or sell US money market funds to cover the trade.

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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."

-- Rhett Butler in "Gone with the Wind"

No, you do not take an exchange rate hit. Let me explain that in my next post.

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Originally posted by pratickm
So you take the exchange rate hit every time.

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The only time you exchange funds is the first time you buy a USD stock. After that all your money can stay in USD unless you decide to convert it to CAD.

Let us say you open a new TFSA account. You contribute $ 5000 CAD. Now you go ahead and buy a USD stock which amounts to total $ 4500 USD. The exchange rate at that time is 1.10. So your total purchase in CAD would be $4950 CAD. So you are left with $50 CAD in cash.

Now the next day you sell the stock. Lets say for a total of USD $4700. Now at this point you have to call TD and let them know that you wish to keep the proceeds in USD. They would go in and buy $4700 of US money market funds for you. Now you have $50 CAD cash and $ 4700 USD in money market, which is near cash.

The third day you decide to buy a USD stock for a total of $ 4600 USD. Call TD again and they will sell $ 4600 USD from your money market to settle the trade. So now you have $50 CAD cash, $100 USD money market and the stock.

The cycle would continue this way.

I see...so essentially they are allowing you to "wash" trades beyond the current date.
I agree most brokerages probably do no offer this feature.
Scotia iTrade does have a similar feature, although it's technically not a "wash".
You can keep all USD in their USD Cash Optimizer account, which is essentially money market, and deploy into your other accounts as and when needed.

But the TD Waterhouse technique that you describe still incur currency conversion fees because their spread is built into the initial conversion they quote you.
In your example, their margin is built into the 1.10 rate that they quote you.

Do they allow you to have a USD trading account and transfer funds between the USD A/C and the TFSA without going through their currency conversion?

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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."

-- Rhett Butler in "Gone with the Wind"

I am still holding huge chunk bought at 0.105/stk...... and today its at 0.38/stk... already made 300% in it....
News and big market movers discussion blog says....it’s going to touch 1.5$ to 2$/stk in couple of months......

Should I buy at this rate more?

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I am an SWING TRADER not a DAY TRADER....

Disclaimer:
(Anything discussed in this Post is completely an individual’s view. The Poster does not hold any responsibility for this discussion. Please discuss with your financial advisor before buying or selling anything discussed in this Post.)

Well it touched 41 cents......