I have been in contact with a nice woman from a company called Globex. I had a Canadian named Jim mention that he had converted his CAD to USD through this company, and it saved him several thousand dollars over using his personal banker.
I have spoken to Snow An on several occasions, and would at least contact her to see if her services would be of use to Canadians buying in Arizona!
The following is an article she wrote about her services and company
Thanks Snow An!
With the strength of the Canadian dollar in the past year, its no wonder that many Canadians are grabbing at the opportunity to purchase great properties at a great price in Arizona. While Canadians often consider the tax implications and lending differences that they face as a foreign national, they often forget to consider foreign exchange risk. As a Canadian buyer in the U.S. you will eventually need to exchange your CAD dollars into USD dollars, which exposes you and your investment to the volatility of the exchange rates. To minimize the affect of foreign exchange risk and maximize your purchasing power, you may want to consider working with a currency broker, such as the ones from Globex Foreign Exchange.
How does foreign exchange risk affect you and your purchase?
Most Canadians are unaware that their bank is charging them a premium of 2-5% on the exchange rate, which can end up costing them hundreds to thousands of dollars more than going through a foreign exchange dealer. What does a 2-cent difference mean to you? It means that your $200,000 USD property may cost you $4,000 CAD more than if you were going through a currency broker that works with the live rate and no premiums.
All premiums aside, let’s assume that your bank is willing to give you the live rate with no premiums. A crucial part in flexing your CAD dollar’s strength is to plan your purchase of USD funds to purchase at the “right” time instead of the last minute. What does a 2-week difference mean to you? It means that if you had purchased $200,000 USD mid-July at the rate of 1.0024, it would have cost you $200,480 CAD. Two weeks later in August, that same $200,000 USD would have cost you $208,580 CAD at the rate of 1.0429. That 2-week difference would have cost you $8,100 CAD more for the same amount of US dollars. Exchange rates can fluctuate close to 1% daily—a $2,000 change on $200,000 CAD—so you want to ensure that you are buying your US funds when the CAD dollar is at a peak throughout the day.
Although the foreign exchange market is affected by a plethora of variables and no one can accurately predict what the rates will do, a currency broker who is very knowledgeable about the market may be able to guide you in the right direction.
How exactly can a currency broker help?
At Globex Foreign Exchange, the currency broker will work with you to keep you updated on the fluctuations in the currency market, market trends and economic information releases, and actively contact you when they see the rates moving in your favor or if it hits a specific rate. In addition to that, the currency broker is able to work with your realtor and Escrow officer to ensure the secure and efficient transfer of your USD funds are on time.
Globex Foreign Exchange also has Forward Contracts and Market Orders that may help you acquire a target rate. If you worried that the exchange rates will change adversely before you’re ready to use or purchase the funds, you can lock in a rate and secure it with a 10% deposit using a Forward Contract. A Forward Contract can offer you peace of mind and since the rate is locked in for up to a year, you are no longer exposed to the volatility of the currency market. A Market Order will allow you to “bid” on a rate and if that rate hits in our systems overnight when nobody is there, our system will automatically purchase the funds you require on your behalf.
About Globex Foreign Exchange
Globex Foreign Exchange is truly a Canadian company developed in Edmonton, Alberta where its headquarters continues to reside for over ten years. We have locations across all the major cities in Canada and worldwide in the UK, Australia, and New Zealand. If you have any questions or would like more information please feel free to contact our dedicated currency trader at Globex:
