Using an ETF for Currency Conversion

When it comes to converting from CAD to USD, many of us go to the bank or the nearest foreign exchange counter.  When it comes to stock traders, we have another possibly cheaper option to convert from CAD to USD.

Horizon’s tutorial on currency conversion using ETFs

Many ETFs are traded on both sides of the border.  Therefore, a stock trader can buy an ETF in Canada on the TSX and sell the ETF in the USA on the NYSE.  By doing this, a stock trader can bypass the fee to convert CAD to USD.  The stock trader will still have to pay the broker fee and the fees the stock exchange charges, therefore, a stock trader will have to calculate if the conversion is cheaper through an ETF.

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