That’s why it’s also a good idea to call the bank to get the most accurate numbers, because a bank’s website might not be transparent about its cash exchange rates. A better option would be a service that does not charge any extra fees – only the conversion rate. $5 per transaction) or a percentage fee (i.e. Some banks or currency services can tack on fees either take the form of a flat transaction fee (i.e. The latter will often offer more competitive rates than banks, but not always. The two most popular places to exchange currency in Canada are at banks or currency exchange services. So you’re ready to buy that fat stack of euros, dollars, pounds or maybe even Chilean pesos. Exchanging your currency: banks and currency exchange services But, again, make sure to check their rates!Ģ. Still, you always want to have a reference point for how much you can expect to buy or sell based on the midmarket rate.Īt the moment of writing, Scotiabank will charge you CA$375 to buy US$300, CA$9.00 more than what you would pay for the hypothetical midmarket rate ($1.22 x 300 = US$366).Īs a general rule, currency conversion stores/services tend to offer more competitive rates than banks. That difference of three cents is the money that Scotiabank earns, sometimes along with a small percentage fee. However, if you head over to Scotiabank to buy that US$1.00, it’ll cost you CA$1.25 at the time of writing. The difference between their rate and the midmarket rate is the “spread”, and is profit for the bank or foreign exchange company.įor example, at the moment the midmarket price to buy US$1.00 is CA$1.22. That’s because businesses mark up their currencies in order to earn profit. It acts as a global, trusted exchange rate between currencies.īut when you go to convert your cash, you’ll rarely, if ever, receive the midmarket rate. Here you’ll find a currency’s “midmarket rate,” or the midpoint between the buy and sell prices of any two currencies at any time.
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You’ll want to check out the Bank of Canada ’s website in order to get a sense of how much your currency is worth. Knowledge is power: know the midmarket rate Whether you want to exchange CAD, USD or any other currency, here’s some of the best ways to go about it.ġ. Others could simply wish to accumulate more of the greenback for a rainy day fund. While the pandemic has greatly reduced travel, some Canadians planning for a post-pandemic vacation may want to pull the trigger now on buying currency.
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Now it’s worth US $0.82, hitting highs not seen since early 2018.
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The Canadian dollar was worth just US $0.67 a little over a year ago. The loonie has climbed 3.7% since the start of the year, the biggest gain among G10 currencies. Right now is a great time to exchange your Canadian cash into foreign currency such as USD, with the Canadian dollar on fire as of late.