U.S. dollar trades executed in your registered account (RSP, RIF, TFSA, LIF, etc.) at Credential Direct are subject to foreign exchange conversion. For example, if you buy a U.S. dollar security, the purchase will settle in Canadian dollars with the foreign exchange rate for buy orders applied. If you then place a sell order, the foreign exchange sell rate will be applied to that sell. We are currently in development to permit U.S. dollar cash in a registered account so that foreign exchange conversion will not occur. Until that time we are pleased to provide the following: “foreign exchange flat trades” also known as “washing FX rates”.
To Wash the FX Rates: Washing the FX rates must be handled manually through a phone order by a representative:
- Orders must be $10,000 USD and executed on the same day
- Execute the first USD$ order on-line
- Once filled, then phone Credential Direct to place any subsequent orders. Commission will be min $43USD
- The representative will manually apply the same FX rate as the first order
- Credential Direct will not be responsible for washing the rates on executed orders from prior days; or, on subsequent orders that have been executed using the on-line trading system