U.S. Resident switching Canandian RRSP brokers

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cnytax
Posts: 51
Joined: Sat Jul 16, 2011 11:28 am

U.S. Resident switching Canandian RRSP brokers

Post by cnytax »

I am a Canadian but living in the U.S. as a permanent resident. I currently have an RRSP with TD Waterhouse.

TD Waterhouse does not yet have U.S. dollar denominated RRSP accounts unlike RBC and BMO discount brokers.

I contacted RBC Direct Investing inquiring about transferring my RRSP to them since they do have U.S. dollar RRSPs. I was told that they cannot do this since I am a U.S. resident and that I do not have a previous banking relationship with them.

Has anybody else tried switching Canadian discount brokers while a U.S. resident?
nelsona
Posts: 18688
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

You can certainly switch, however, typically US residents have to switch TO TD waterhouse, as none of the other big bank-realted brokerages will deal with US clients at all, never mind accept new US clients.

Why the interest in US denominated accounts?
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
cnytax
Posts: 51
Joined: Sat Jul 16, 2011 11:28 am

Post by cnytax »

If I am doing just trades with TD Waterhouse, then everything is fine even with U.S. stocks because TD has a "wash" feature where U.S. dollars go in and out of a U.S. $ money market fund when U.S. stocks are traded.

However, I sometimes take money out of my RRSP ( soon to be converted to a RIF) and since I want the money to be in U.S. funds, then I am forced to convert Cdn $ to US $. There is an approximately 1.5% conversion fee on top of the exchange rate.

It is this conversion fee that I am trying to avoid.
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