Is there a charge when transferring funds from Canada into a US account?

7 Replies

Hi there, 

I was wondering if anyone would be able to answer my question. I am looking to borrow money from one of my investor friends who live in Canada. My attorney stated that this investor should be able to transfer money right into the attorneys escrow account with no problems. However, do we need to consider the currency exchange or are there any other fees we will have to pay from transferring this from Canadian account to American Account? 

Any help would be greatly appreciated!! Thank you so much! 

Hi Jennifer,

I suggest your friend contact a foreign exchange/currency trading firm who charge far less than a bank does.  Typically they charge 0.5% vs up to 2.5% by the banks, also, they generally do the wires for free as well.  I use Firma Foreign Exchange, but there are others as well such as Knightsbridge.  

Your friend should also check with an accountant or a cross border specialist on the best way to approach this, if they are not already set up to do business in the US.  They'll need to get an ITIN and declare any interest you pay and/or rental income.  

The best way and cheapest way in my experience to avoid currency exchange is using "Norbert's gambit" through you brokerage account. Google for more info, it's rather simple and let's you achieve near pot rate. 

Originally posted by @Jennifer Roth :

Hi there, 

I was wondering if anyone would be able to answer my question. I am looking to borrow money from one of my investor friends who live in Canada. My attorney stated that this investor should be able to transfer money right into the attorneys escrow account with no problems. However, do we need to consider the currency exchange or are there any other fees we will have to pay from transferring this from Canadian account to American Account? 

Any help would be greatly appreciated!! Thank you so much! 

Hi Jennifer,

Check these guys out -

http://www.clearfx.com/en-HK/why-clearfx/safety-of...

I have wiring money to and from Australia using them.

Super safe with great rates.

Thanks

@Jennifer Roth  

Depending on with whom your friend banks (i.e. one of the Big-5), they can should be able to do as well or better using the FX house of the brokerage arm.   As alluded above, if they deal with RBC or Scotia iTrade, they could employ Norbert's Gambit ... if they plan to be moving funds on a regular basis, they may want to learn the process.

1(506) 471-4126

I've used XE.com to wire funds and send a bank draft.  Rates are good and fees are usually cheaper than a bank.  Wire fee was half what the bank was charging. Using these third party services usually takes more time to send and receive funds a couple business days to send the money to the foreign exchange broker and couple days to then send it the beneficiary ( total 4 to 6 business days ).  The bank draft takes longer due mailing (XE handles the mailing).  

If speed and time is a factor, then wiring funds directly from your bank account to the beneficiary account is the better option.  Should be less than a few hours or a single business day.  

On another note the client can also avoid currency fees if he opens a USD checking/savings at their bank in Canada.

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