Cdn Broker getting a US Bank Account

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Broker101

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Oct 26, 2018
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Hi Guys,

We are a canadian freight brokerage that does do business in the US - how do you guys handle your US payments, do you have a:
1) US bank account from a canadian bank that deals with US dollars
2) have you set up a bank account with a US bank

If its option #2 let me know which bank you use and how to set it up - I am assuming it can be done without going to the US and using a cdn address?
Am trying to save a bit on conversion costs on currency.

Any advice is appreciated.

Thanks in advance
 
Broker101 said:
Hi Guys,

We are a canadian freight brokerage that does do business in the US - how do you guys handle your US payments, do you have a:
1) US bank account from a canadian bank that deals with US dollars
2) have you set up a bank account with a US bank

If its option #2 let me know which bank you use and how to set it up - I am assuming it can be done without going to the US and using a cdn address?
Am trying to save a bit on conversion costs on currency.

Any advice is appreciated.

Thanks in advance
Click to expand...
We have a USD bank account with TD. We usually sell USD and find it is better to use a 3rd party currency company to do so as you will get better rates. In my opinion, getting an account with a US bank will complicate things and really not necessary if I understand what you are trying to achieve.
 
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You need a USA tax I D number if you are setting up a U S Bank account in the States.
 
TransAction said:
We have a USD bank account with TD. We usually sell USD and find it is better to use a 3rd party currency company to do so as you will get better rates. In my opinion, getting an account with a US bank will complicate things and really not necessary if I understand what you are trying to achieve.
Click to expand...
Thanks.....which 3rd party currency company do you use?
 
There are a few. We use Cambridge often. I think you find them all to be within fractions of a cent of each other. The size of the transaction will influence the rate you receive. As others have mentioned, it isn’t necessary to open an account in the US. All the large banks offer US$ accounts. Be sure to ask them about receiving and sending EFTs as some banks are more restrictive than others.
 
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as loaders mentioned- look into the EFTs. The cost of this service may influence your decision.
 
Take note... if you're paying US Carriers in US Funds and you're Canadian and have a Canadian bank... The big ones RBC / TD are better at foreign EFT's than others.
 
We have both a US bank based in the US and a USD funds account based in Canada. They both have their uses and strengths. Some of the US companies don't do EFT's to Canadian Banks. We find the US bank very useful but you do need a US address and the federal tax id.
 
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Most of my work is US, and I have a US bank account with RBC which has an office at Liberty Plaza in the US. So far so good.. no problems for over 20 years.
 
Approx. 20% of our business is in US$ and we have used a US$ account with Bank of Montreal with no problems, other than receiving EFTs.
 
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If the US company won't offer EFT payments to Canada, or if BMO can't receive a US EFT, we rely on the old fashioned postal system. Or if necessary we will call in FedEx to pickup a cheque at our expense. All of which, in my opinion, is much less cumbersome than trying to maintain a US account at a US based bank. The less exposure to the Internal Revenue System the better.
 
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TD allows us to accept EFT's to our USD account. I don't deal with that area much but my receivables has confirmed this.
 
I agree with Loaders. The U S banks can't EFT to a Canadian US account. It is easy to set up a USA Bank account tif you are close to the border.
 
Don't even have to be close to the border. Go into your local branch and ask to speak to your account manager. He/she will set you up with a US account in the United States in about 15 minutes.
 
True. But if you would rather set up a true US Bank account( U S Bank), you need to visit an American Bank.
 
Henry said:
I agree with Loaders. The U S banks can't EFT to a Canadian US account. It is easy to set up a USA Bank account tif you are close to the border.
Click to expand...
As stated, We get US EFT's from US companies into our TD USD account...
 
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