tyska Posted January 26, 2010 Posted January 26, 2010 It was discussed before about how much we may get on the conversion of the div to C$. I was just curious as to how much spread if any there is across brokers. At TDWaterhouse my div came in at 10.475 per share. Dan
KFRCanuk Posted January 26, 2010 Posted January 26, 2010 I also got $10.475CDN in my CDN TD Waterhouse Account.
Smazz Posted January 27, 2010 Posted January 27, 2010 $10.526 CAD RBC direct investing Lol, Im surprised I thought these guys would screw me more than most but after talking to my buddy who is in Investment Banking for TD, it doesnt surprise me that they might be the bigger Aholes. :D BTW, crazy minds think alike Tyska, I was thinking of posting the same type of thread lol. We dont do enough due diligence pertaining to some of these house cleaning issues. ;)
Uccmal Posted January 27, 2010 Posted January 27, 2010 Were I a cynical individual I would say that TD was doing a little profiteering on this deal. Depending on the exact exchange rate used they made anywhere from 1 to 1.6%. I am going to ask Fairfax if they could remedy this in the future. Better that FFH or me gets the money than TD. Now if TD was trading cheaper I would just buy its stock like I have done with Bell Canada. I hold just enough Bell stock to pay my assorted Bell bills via the dividend.
Partner24 Posted January 27, 2010 Posted January 27, 2010 1,065 at National Bank Direct Brokerage. I would prefer FFH to convert that money into Canadian dollar themselves since they have far more negociation power with 200 millions dollars than every one of us with our own individual account.
Smazz Posted January 27, 2010 Posted January 27, 2010 Were I a cynical individual I would say that TD was doing a little profiteering on this deal. Well Al, they are all profiteering on the exchange.
drog Posted January 27, 2010 Posted January 27, 2010 $10.59 at RBC Dexia, the largest custodian in Canada.
ubuy2wron Posted January 27, 2010 Posted January 27, 2010 10.56 @ CIBC wood Gundy. Bankers usualy have 5 or 6 techniques to pick your pocket and are inventing new ones every day. ;D
Smazz Posted January 27, 2010 Posted January 27, 2010 10.56 @ CIBC wood Gundy. Bankers usualy have 5 or 6 techniques to pick your pocket and are inventing new ones every day. ;D DAMN ITS COLD OUT TODAY!!!!! "HOW COLD IS IT?" WELL, ITS SO COLD THE BANKER HAD HIS HANDS IN HIS OWN POCKETS!!!!!
FFHWatcher Posted January 27, 2010 Posted January 27, 2010 Qtrade has not deposited it into my account yet?
FFHWatcher Posted January 27, 2010 Posted January 27, 2010 Just got this response from Qtrade. "The Fairfax dividends have paid to your accounts today. You should see the funds in your account later today or tomorrow. The US dividend was credited to your Canadian $ account at a rate of 1.0435. Regards, Customer Support Qtrade Investor TF 1.877.669.3977 E [email protected]"
Smazz Posted January 28, 2010 Posted January 28, 2010 HSBC gave me 10.673. ;D ;D ;D wow! I wonder what their spread was?
FFHWatcher Posted January 28, 2010 Posted January 28, 2010 HSBC gave me 10.673. ;D ;D ;D wow! I wonder what their spread was? Spread? It looks like the max spot rate on Tues and Wed were 1.068. I am told the spread is generally about 2.5 - 3.5 cents from the buy to the sell. Therefore, brokers are making about 1.5 cents if their total spread is 3.0. If the max spot rate was 1.068 subtract 0.015 (broker profit) = $1.053. Given that the low point was about 1.06 on both days, I am surprised at people getting over 1.06. Are their brokers not making any money on the conversion (yeah, right!!!) or what gives? Why was I the smuck who got the lowest rate by about 2 cents versus the highest conversion rate? It isn't big money but I am just looking for some insight on whether or not I am getting screwed on every conversion I make at Qtrade or was it a one time fluke? Qtrade said that most brokers have a spread of 3.5 cents between what the buy and the sell. Any comments would be appreciated.
Smazz Posted January 28, 2010 Posted January 28, 2010 FFH watcher, someone else can explain it better than I but i believe you have to factor in the forward rate - this is how it was explained to me. I used the term "explained" lightly lol. Anyone else want to chime in - please do - steer this ship! The N-day forward rate is the rate which appears in a contract to exchange a currency for another N days in the future. It is distinguished from the spot rate, which is the rate used in agreements to exchange one currency for another immediately. No currency changes hand between the parties in a forward contract at the time it is signed; the currency is exchanged at the maturity date of the contract N days in the future.
SharperDingaan Posted January 28, 2010 Posted January 28, 2010 Speaking to Cdn - bank owned brokerages The broker has a dividend book for the specific dividend payment, that outlines the share holding by account & account type - as at close of business on the record date. Long, short, domestic & foreign residents are all identified. If a USD div is being paid the amount is automatically converted at the banks prior day posted bid (usually around midnight) & the Cdn equivalent (net of witholding tax) automatically posted to your account that day (usually 12:01 or so). If your account is USD there is no conversion. The broker will either receive the payers USD deposit that morning (12.01 wire), or cash their cheque a little later on during the day - & receive a FX rate a little different to what they paid. The difference is theirs. Similary if the bank needs to collect the div from a short-seller & they pay in USD, the bank will get whatever the FX rate is at the time they receive the funds. After 2 years the accumulated FX difference on all the years dividend books is forwarded to the BOC, & ultimately applied against the nations annual debt service. A stand-alone broker converts at poorer rates as they must pay the banks spread. The bank itself converts at a better rate as they make the market, & have a competitive advantage. SD
watsa_is_a_randian_hero Posted January 28, 2010 Posted January 28, 2010 Is it possible to stop a tax deferral on the dividend from hitting FFH held in the states in an IRA?
Grenville Posted January 28, 2010 Posted January 28, 2010 I hold FRFHF in Scottrade through a regular account and an IRA account. The regular account has 15% deducted for Canadian Tax, but the IRA account does not show a similar charge.
SharperDingaan Posted January 29, 2010 Posted January 29, 2010 IRA accounts can only be held by US residents. The Cdn/US tax treaty requires a 15% withholding tax at source.
nodnub Posted January 29, 2010 Posted January 29, 2010 The Cdn/US tax treaty requires a 15% withholding tax at source. I believe the following information is correct: The Cdn withholding tax does not apply to Canadian corporation dividends paid to US shareholder that hold the investment in an IRA. Similarly, US withholding tax do not apply to US corporation dividends paid to Canadian shareholders that hold the investment in an RRSP. -nodnub
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