CAN/USD bulk conversion and Application required conversion rate on every transaction


I am new to this application. I have performed a few searches to try to address what I feel is an issue and have not found an answer.

I convert CAN to USD to make a trade. Say I convert 65,000 to 50,000 USD. I then buy stock and the application asks me to enter a conversion rate. Fair enough, and I enjoy that it tracks the conversion cost and factors it into profit/loss.

Later I sell US stock, it forces me to enter a conversion rate. I then buy more US stock from the unconverted funds and I am forces to enter a conversion rate. No additional conversions happened. The application requires me to enter a conversion rate which is incorrectly inflating or deflating earning.

Is there a way around this?

Hi @ryanacole welcome to the community! :tada:

For tax reporting purposes, after each sale, there must be a currency conversion back to the base currency of the portfolio. There are a couple of workarounds you can use:

Workaround 1; is to have your US shares in their own portfolio and your Canadian shares in their own portfolio. Here, this will remove any currency conversions.

Workaround 2; is to just set the FX rate to 1 on trades unless you take the cash completely out of the brokerage.

Hello Jack,

Thank you for your welcome and your response. I used suggestion #2 but it seems to create a false positive because the exchange rate I input into the program is compared to the actual exchange rate and, given today’s current currency exchange values, my currency gain goes through the roof.

I am new to this program, and Semi new to trading. I have to consider, perhaps the problem is me? Is what I am thinking/asking sound wrong to you?

I figured since I traded CAN to US dollars in one action, and then used those dollars to buy stock. Which was sold. And then the currency was re-used to purchase additional stock. My line of thinking was that I did not go to an additional currency conversion expense when using previously converted money.

I am open to to all feedback. Just trying to figure this out.

Actually, maybe I am wrong on my “dollar value sky rockets” comment. I thought entering #1 for conversions equaled 1:1 ratio for American and Canadian dollar exchange.

But I load up my stock and it shows an exchange value. Perhaps the rate on that given day?

I just noticed… Sharesight is using an exchange rate of the day. My investment capital is with ScotiaBank. I went to a local currency converters website and their CAN/USD exchange rate was close, if not the same, as Sharesights.

Then I looked at ScotiaBanks exchange. Man they are horrible. 3 to 4 cents more per dollar for CAN/USD.

Is this normal? This totally accounts for why I thought the currency profit was skyrocketing. Because I am being charged way to much by them. Crooks!

@ryanacole Sharesight assumes the USD is converted back to CAD once sold for reporting purposes.

With regards to FX rates, it may vary from your broker to Sharesight. It’s always best to input the figure that matches your broker.