FOREX

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sunflower101
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Joined: Sun Apr 03, 2016 4:56 pm

FOREX

Post by sunflower101 »

Need to send USD to Canada. I have RBC USD accounts in both countries and can send USD from USA to Canada. But for USD to CAD, RBC is not giving good rate. I talked with a FOREX company in Canada but they want a Canadian address and Canadian ID. Is it really required by FOREX company? Any TAX consequence?
nelsona
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Post by nelsona »

It isn't a legal requirement, it is the policy of that particular firm.

I recently signed up fand used MTFX.ca which is in Canada but does not require Cdn address (accepts your US address and ID), and rates were excellent.
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nelsona
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Post by nelsona »

no tax consequence
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nelsona
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Post by nelsona »

There are "Know your client" (KYC) regs that all these firms need to follow; they each have their own policies.
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sunflower101
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Post by sunflower101 »

Thanks. I opened an account with MTFX. They really have a good rate. What is the most economical way to send USD from my RBC account in USA to MTFX USD account in Canada?

Sending USD to my RBC USD account in Canada is free. But they require I need to be in branch before they can do any wire transfer.

Wiring USD from my RBC US account to their canadian USD account has a flat rate of $75 due to international transfer.
nelsona
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Post by nelsona »

You have a Cdn$ bank account in Canada, don't you? If you don't then closing your Cdn account was a slight misjudgment on your part. You should reopen one.

I do not think that MTFX does non-exchange transfers. If you want to send money to Canada, it should be USD to C$, directly to YOUR Cdn bank account. They will not do USD to USD.

And who is "they" that require you to be in branch? MTFX or RBC Canada.
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nelsona
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Post by nelsona »

and I do EFT or ACH or "bill payment" when making my transfers. No need to pay wire fees unless you are in super hurry.
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sunflower101
Posts: 17
Joined: Sun Apr 03, 2016 4:56 pm

Post by sunflower101 »

Here is my scenario:

I have:

RBC USA USD account

RBC canada USD and CAD account

I can transfer USD from RBC USA USD account to my RBC Canada USD account for free. But RBC canada wants me do be in the branch do USD wire transfer to MTFX USD account. No issue for MTFX to send the after exchange CAD back to my RBC canada CAD account.


If I do USD wire transfer from RBC USA account to MTFX USD account in Canada then there is flat rate $75 fees.

MTFX says I can only bill pay to sell CAD only. But I am looking to buy CAD.

What is EFT or ACH?
nelsona
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Post by nelsona »

I think you are misunderstanding what FOREX does. they exchange currencies.

So, you sell USD from your US account in US and put CAD in your Canadian bank, USING MTFX. One exchange, one transaction, one fee.

ANYONE can transfer US funds to a USD in canada. Its called writing a check and sending it to them (or in your case making an RBC transfer).

But for FOREX, you are looking for a better rate than bank. So you use a forex company. RBC doesn't even need to be involved. Don't put it in an MTFX holding account, that is 2 steps.

I agree tha bill pay only works FROM Canadian$ bank account, you can use this when you do the reverse from what you are doing this time. But certainly a wire from MTFX can be processed by your Cdn branch, without you being there.


To sum up, you ask MTFX to take funds from your US bank account, and put it in your Cdn C$ RBC account. One transaction.

OR you ask MTFX to take USD form your CDn USD account, and DEPOSIT, not wire, into your Cdn account, I'm 100% sure they can do at least one of these, if not both.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
sunflower101
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Joined: Sun Apr 03, 2016 4:56 pm

Post by sunflower101 »

Thanks.

I asked both MTFX and Canadian Forex and they can not withdraw USD from any USD account. But they can send back CAD to Canadian account.

MTFX said they can receive email money transfer but looks like RBC does not allow from account in USD for email money transfer. It gives an error saying from account must be in CAD.

Will check for others.
nelsona
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Post by nelsona »

I will confirm this with MTFX. Doesn't sound correct.

How I miss custom house,which had great rates/service/flexibility, but were pillaged by Western Union takeover.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
nelsona
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Post by nelsona »

I spoke to my agent at MTFX and she did sort of confirm your plight.

She said MTFX accepts WIRE transfers TO MTFX direcrly, but admits that the fees charged by US banks to do this is counterproductive.

And if the funds are in your USD account in Canada, they can only be wired from that account, not using bill pay or ePay like you found. Again, you would have a wire fee from the bank, which defeats the purpose of good exchange rate.

So, yes, they do seem to have trouble accepting US funds as the starting currency -- which is pretty poor. Even Western Union can do these trades in both directions easily with little or no fee (the only problem is lousy forex rate).

She said you could call at 250-727-0118 to see what can be done, but I don't think this helps you.

let me know if you find a good dealer.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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