per last 2 posts, the 1% is based on amount over your foreign content limit, which would normally be 30%. if you have $100,000, 50K in foreign (all based on cost), 50K cash, you would pay a $200/month penalty (=1% of 50K-0.3*100K). as for currency spread, if trade is done on same day, yo may be able to ask for a cross rate. this is what i do. the buy and sell are done at the same FX rate. either the FX bid or ask rate will be used depending on whether there is a net C$ or US$ position.