"You can save thousands of dollars by opening an account in the US "
????
Let's keep it in perspective.
I have a US$ account at a bank located in the USA since 2001. Yes, the conversion rate I get from my bank is better than the regular PayPal conversion rate by about seven tenth of one percent (on average over the years).
If you transfer US$100,000 you will save about $700, based on PayPal regular conversion rate.
You really need a huge volume to save "thousands of dollars".
It should be noted that the PayPal spread for large users is now competitive with Canadian banks as announced by PayPal on August 20th for sellers doing more than $3,000 a month ("PayPal wants to be as competitive as possible and so that’s the reason why we were able to lower our foreign exchange conversion rate to 1.5% or 1% for merchants and sellers receiving more than $3000 in payments per month"). .
????
Let's keep it in perspective.
I have a US$ account at a bank located in the USA since 2001. Yes, the conversion rate I get from my bank is better than the regular PayPal conversion rate by about seven tenth of one percent (on average over the years).
If you transfer US$100,000 you will save about $700, based on PayPal regular conversion rate.
You really need a huge volume to save "thousands of dollars".
It should be noted that the PayPal spread for large users is now competitive with Canadian banks as announced by PayPal on August 20th for sellers doing more than $3,000 a month ("PayPal wants to be as competitive as possible and so that’s the reason why we were able to lower our foreign exchange conversion rate to 1.5% or 1% for merchants and sellers receiving more than $3000 in payments per month"). .
"I'm sure those accounts are not free either"
Actually, my account at TD Banknorth cost me ZERO (other than cheque printimng every few years).
Based on the recent changes in PayPal policy for large sellers (over $3,000 monthly), you will not lose any conversiuon rate when compared to Canadian banks.
The advantages of having a US$ account, in addition to saving on exchange converstion rate, is to use US$ to pay for purchases (if applicable) and pay eBay fees is US$ (again saving the conversion). .
Actually, my account at TD Banknorth cost me ZERO (other than cheque printimng every few years).
Based on the recent changes in PayPal policy for large sellers (over $3,000 monthly), you will not lose any conversiuon rate when compared to Canadian banks.
The advantages of having a US$ account, in addition to saving on exchange converstion rate, is to use US$ to pay for purchases (if applicable) and pay eBay fees is US$ (again saving the conversion). .
" I pay them from my US$ PP balance"
I pay the with my US dollar denominated MasterCard. I get 30 more days to pay (interet free) and get AirMiles on my eBay fees (at over $10,000 a year it does add up!).
"Some of my stock purchases are also from my US$ PP balance"
If your suppliers accept PayPal that's fine. Most of mine do not. They want to be paid by US$ check or credit card.
"I can't really see the difference between maintaining a US$ account in the USA versus one in Canada"
The only major difference is that PayPal cannot transfer US$ to your US dollar denominated account held at a Canadian bank. .
I pay the with my US dollar denominated MasterCard. I get 30 more days to pay (interet free) and get AirMiles on my eBay fees (at over $10,000 a year it does add up!).
"Some of my stock purchases are also from my US$ PP balance"
If your suppliers accept PayPal that's fine. Most of mine do not. They want to be paid by US$ check or credit card.
"I can't really see the difference between maintaining a US$ account in the USA versus one in Canada"
The only major difference is that PayPal cannot transfer US$ to your US dollar denominated account held at a Canadian bank. .
funkywatch -
What is the current spread to buy/sell US$1000 at xe.com ? .
What is the current spread to buy/sell US$1000 at xe.com ? .
I'm not sure what their current spread is but they do guarantee the lowest spread available for transaction under a certain amount (I think it's $1 Million.
I set up my account with them a few years ago, I checked at that time and certainly they offered the very best conversions at that time. If I recall correctly if was about 75 basis points from the standard mid-market rate. The good and potentially bad part of XE is that you trade using "live" rates (updated every 60 seconds), most banks use a daily rate for smaller transaction or an hourly rate for larger transactions. During "normal" times these make little difference but with the highly volatile conditions we have at the moment you can come out ahead (or behind) using either method. (on Friday there was a swing of more than 5% in only 4 hours).
I set up my account with them a few years ago, I checked at that time and certainly they offered the very best conversions at that time. If I recall correctly if was about 75 basis points from the standard mid-market rate. The good and potentially bad part of XE is that you trade using "live" rates (updated every 60 seconds), most banks use a daily rate for smaller transaction or an hourly rate for larger transactions. During "normal" times these make little difference but with the highly volatile conditions we have at the moment you can come out ahead (or behind) using either method. (on Friday there was a swing of more than 5% in only 4 hours).
