You can open a US bank account (I use Harris Bank, since they're owned by BMO) and withdraw USD from paypal to there. I then write a cheque to move USD across the border, and use VBCE to convert USD to CAD at market - 35 basis points (aka. about 2% better than what Paypal offers).
> I then write a cheque to move USD across the border, and use VBCE to convert USD to CAD at market - 35 basis points (aka. about 2% better than what Paypal offers).
I would think using Norbert's gambit with a discount broker would be the cheapest way to convert large amounts of currency (e.g. buy DLR-U.TO, sell DLR.TO.)
Norbert's gambit is good, but not free - you still lose about 20 bp to market spreads using DLR.TO. If I was moving more money I would use that (possibly with a more heavily traded stock) but the marginal advantage wouldn't be worthwhile for my volume.
