How to get the best exchange rate conversion?

[who's ur daddy?]

So I was so happy that the dollar was at par or very close to it.

Today I went to the bank (BMO) to exchange some Cdn$ for US$ to pay off my US$ Mastercard. Well, I was disappointed to get a rate of 1.03 or .97 US$ for a Cdn$.

I didn't expect to get the money for free, but the exchange rate was significantly worse than the real rate.

What do you guys do?

[happycamper83]

No matter what you do, there is always a commission on the exchange rate. If you were to take $20 and keep switching it from Canadian to US, eventually you would have nothing.

Some banks may have better exchange rates than others though, I'm not sure.

[cslittle999]

The commission is different at each bank. To get better than the posted rate you need to be exchanging a large amount of money.

www.xe.com has the real exchange. Today's close was 0.99936. TD Bank has 0.9812. ScotiaBank has 0.978000.

[101DalmFan]

On September 14th, I bought $500 US at our credit union; the rate was 1.0561 -- I was delighted. By the same token, I had a cheque from my BIL in the U.S. to deposit. The exchange rate on converting US dollars to CDN dollars was 1.0091.

And thank heavens I cashed his cheque then, as now, if I'd waited just these few days, I would likely take a hit on his cheque (who would have believed that possible a few years ago.......!).

The rate you received, about 1.03, sounds exactly right to me. There will always be a gap between the trading rate you hear on the news and the consumer exchange rate available at banks, and the gap is typically consistent to about 2 or 3 points. I called the credit union yesterday and the rate was 1.04; I believe my hubby called this morning and he too was quoted a rate of 1.03. Me, I'm waiting a few more days before I go get more $$$ for our cruise ;)

[who's ur daddy?]

Thanks all. I guess I can't complain too much. When I paid our DVC it was 1.065. Now it's 1.03, so any improvement is good. Y'all remember when it was like 1.50!!!

[RoyalCanadian]

Despite the amazing exchange rate -- does anyone care to guess how long it will be until someone comes on this board and starts moaning about not getting the 2-for-1 deal or the Buy-One-Get-One-@-Half-Off deals that WDW used to give us Canucks to get us to part with our money?

We went in November '97 and had the Buy-One-Get-One-@-Half-Off park admission tickets.

[BitsnBearsMom]

I'm sure someone will find something to complain about.... won't be me though :upsidedow

When I exchanged money I went to www.global-currency.on.ca as there is a place in Guelph. I found they had a better exchange rate then the bank and there was no charge for travellers cheques either! They are posting 1.0197 for todays rate but they are only in Guelph I believe. I'm sure there are other places like it though!

[mkmommy]

Dianna

Thanks for the link, I plan on buying some US tomorrow, so I will be going there.

Lisa

[Hoogy]

We used to live in Guelph...but DH is still working close by at TMMC so he could zip in there and exchange some money. I just checked the site. What id did you have to show. Was the license enough? or did they even ask?
where is it? (I forgot to look)

[BitsnBearsMom]

We wrote them a personal cheque and gave a credit card to guarantee it.

Any gov. issued photo id works!

[highland3]

I use a currency exchange place in Ottawa. It's always a better rate than the bank. :thumbsup2

For those using the banks... and a bank manager recently told me that the exchange rate at the banks is always better in the morning than in the afternoon. She did not have the answer when I asked "why?". :teacher: :confused3

[NAB]

We opened a U.S account at TD. I only cost a $1.00 service charge when we take out. But not every transaction. Then do it on the computer it is up to date rate and better then the bank can even give you if you go in.

You can check what the rate is and it gives you a few minutes to decide to buy U.S money or not. Just transfer money out of your regular account.

[MECH8T7]

I know this sounds counter-intuitive but I think the rate to buy USD travellers cheques is usually better (from a CAD perspective) than buying US cash from the banks...(sorry, I don't know why this the case and I think the differential is not that big)...

[101DalmFan]

We opened a U.S account at TD. I only cost a $1.00 service charge when we take out. But not every transaction. Then do it on the computer it is up to date rate and better then the bank can even give you if you go in.

You can check what the rate is and it gives you a few minutes to decide to buy U.S money or not. Just transfer money out of your regular account.

I thought about opening just such an account (a U.S. $ acct), but thought that the service charges would be too much -- I didn't realize it was only $1 for a withdrawal. If you don't mind me asking, do you also pay a monthly service charge as well? We travel to the US frequently so I'm thinking this type of account would be good for my family :)

[minnie56]

Well, if you aren't thrilled at that exchange, go look at the back of cards at the card stores, items at Michaels, anything at Pier One, books at Indigo and see what THEIR rate of exchange is! Waaaaay out of whack with the present rates!
Just got back from Buffalo and picked up some books...$12.99 CAD on the back and I paid $5.99 USD Whoo-Hooo...
I won't buy anything that they are not keeping up to speed on converting here! Plus, I save all that tax...all the better!:thumbsup2
My SMALL stand!

[laura001]

I have always used Money Mart, they always seem to have a better rate than the banks.

The worst thing is changing your american back into Canadian, now you are losing on the American dollar. Ok, so that isn't the worst thing, but will take some getting used to. :banana:

[highland3]

Well, if you aren't thrilled at that exchange, go look at the back of cards at the card stores, items at Michaels, anything at Pier One, books at Indigo and see what THEIR rate of exchange is! Waaaaay out of whack with the present rates!
Just got back from Buffalo and picked up some books...$12.99 CAD on the back and I paid $5.99 USD Whoo-Hooo...
I won't buy anything that they are not keeping up to speed on converting here! Plus, I save all that tax...all the better!:thumbsup2
My SMALL stand!

You are soooo right!!! Even before our dollar took off, the difference in price was usually nuts. :sad2:

[DutchsMommy]

I know this sounds counter-intuitive but I think the rate to buy USD travellers cheques is usually better (from a CAD perspective) than buying US cash from the banks...(sorry, I don't know why this the case and I think the differential is not that big)...

Just FYI - this is because it is cheaper from an overhead perspective for the Banks to hold TCs rather than cash - so the exchange rate is better. The thing you have to watch is a s/c on TCs or a cost to cash them on the other end - usually can erode the xchange rate differential.

[bunnyfoo]

The banks usually give employees a special rate on foreign exchange. So if you know someone who works at the bank, they might be able to help you out.

[abirdd]

I use a currency exchange place in Ottawa. It's always a better rate than the bank. :thumbsup2

What currency exchange place are you using in Ottawa? I checked around with a couple on Friday, and the rates were none too hot. I would love to find one with better exchange than Scotiabank!!

[highland3]

What currency exchange place are you using in Ottawa? I checked around with a couple on Friday, and the rates were none too hot. I would love to find one with better exchange than Scotiabank!!

AccuRate on Carling.

[abirdd]

AccuRate on Carling.

Thanks! I'll have to check with them this week :thumbsup2

[mom_rules]

I also have a US bank account-$.50 per withdrawal, earns a little interest each month and no monthly service charge. Anytime I have leftover US it goes back into the account until we need it again (like to write a cheque to send for a deposit etc-better than using a credit card for exchange purposes).
They also don't charge me for Amex travellers cheques if I take the cash from that account to buy them.

[Tantor]

Well, if you aren't thrilled at that exchange, go look at the back of cards at the card stores, items at Michaels, anything at Pier One, books at Indigo and see what THEIR rate of exchange is! Waaaaay out of whack with the present rates!
Just got back from Buffalo and picked up some books...$12.99 CAD on the back and I paid $5.99 USD Whoo-Hooo...
I won't buy anything that they are not keeping up to speed on converting here! Plus, I save all that tax...all the better!:thumbsup2
My SMALL stand!

YES!! totally agree!! these company's have got to get with it!

[RC Fan]

The worst thing is changing your american back into Canadian, now you are losing on the American dollar. Ok, so that isn't the worst thing, but will take some getting used to. :banana:

If possible, hold on to your US cash for the next trip. I have an ING US account, so whatever I don't use goes back into the account for future use.

[mom_rules]

If possible, hold on to your US cash for the next trip. I have an ING US account, so whatever I don't use goes back into the account for future use.


I agree-we do the same.

[folieadeux]

Well, if you aren't thrilled at that exchange, go look at the back of cards at the card stores, items at Michaels, anything at Pier One, books at Indigo and see what THEIR rate of exchange is! Waaaaay out of whack with the present rates!
Just got back from Buffalo and picked up some books...$12.99 CAD on the back and I paid $5.99 USD Whoo-Hooo...
I won't buy anything that they are not keeping up to speed on converting here! Plus, I save all that tax...all the better!:thumbsup2
My SMALL stand!

Agreed! I hate that. :(

[TreesyB]

Well, if you aren't thrilled at that exchange, go look at the back of cards at the card stores, items at Michaels, anything at Pier One, books at Indigo and see what THEIR rate of exchange is! Waaaaay out of whack with the present rates!
Just got back from Buffalo and picked up some books...$12.99 CAD on the back and I paid $5.99 USD Whoo-Hooo...
I won't buy anything that they are not keeping up to speed on converting here! Plus, I save all that tax...all the better!:thumbsup2
My SMALL stand!

Did you hear about the class action lawsuit against car manufacturers that Canadian vehicles are not on par with the exchange rate? In fact they are 40% higher in purchase price. Go Lawsuit!

[matsterrocks]

What about Mastercard? Do they normaly have decent exchange rates on your purchases?

[minnie56]

I sure did hear about that! Unfortunately, I bought a new car today so that won't help me...but we need some change for sure. I looked into buying in the US but it was just too complicated. Plus, the warranty situation was worriesome sooo...we'll have to hope the Manufacturers get the wake up call here that we are noticing and fed up and change needs to happen.

I think Mastercard as well as Visa are fair on their exchange rates. I am sure it will always swing their way...but all in all...certainly a better deal than what we are being ripped off at the retail outlets.:mad:

[OntFamily]

I think Mastercard as well as Visa are fair on their exchange rates. I am sure it will always swing their way...but all in all...certainly a better deal than what we are being ripped off at the retail outlets.:mad:

Visa / MC exchange rates are normally the Bank of Canada rate, plus a 2.5% service charge.

[NAB]

Someone asked if I pay a monthly service charge on the U.S account the answer is no. Just that $1.00 when we take it out. You would have to pay something I think if you wanted a pass book or statement. We do it all on the internet.

Like I said you get a better rate then the bank. Very easy to set up .

[tinkerone]

banker here. someone said earlier that their bank manager told them the rate is always better in the am. i say, run and find a new bank manager! if you think about it, that would be logisticlly imposible. the us rate picks up where it left off the day before and them moves up or down, depending on what the economy is doing. if it was always lowest in the morning it would have to keep going up and up, never being able to come down again. hope i said that clear. sounds ok to me, but i'm in my own mind.
the main reason there is a difference between bank of canada exchange rates and bank rates is that when the banks purchase money from the bank of canada they charge a premium. they have to have it shipped in and then we have to have it shipped to us so you pay security for this twice.
i say, get yourself a us mastercard (or visa if they have one) and do not pay the 2.5% difference that is charged when you use your canadian card. get yourself a NO FEE us acct. bmo offers both a chequing and savings us acct that has no fees as long as you have a package plan on your main acct and 95% of the banking population has a pacakage plan on their accts. paying a dollar to get my money out would just piss me off. if your bank doesn't offer you a no fee option, switch banks. money is better in your pocket then a banks!
anyway, just be smart with the money. its yours and whether that means saving the dollar shopping across boarder or swithching banks to save it, do it.:thumbsup2

[minnie56]

Soooo agree!

I do not pay anything at all for my USD acct and not a penny to withdraw with RBC. I have had a USD Mastercard forever and an RBC USD Visa for approx 3 years. I will not pay anything to use my own money!

banker here. someone said earlier that their bank manager told them the rate is always better in the am. i say, run and find a new bank manager! if you think about it, that would be logisticlly imposible. the us rate picks up where it left off the day before and them moves up or down, depending on what the economy is doing. if it was always lowest in the morning it would have to keep going up and up, never being able to come down again. hope i said that clear. sounds ok to me, but i'm in my own mind.
the main reason there is a difference between bank of canada exchange rates and bank rates is that when the banks purchase money from the bank of canada they charge a premium. they have to have it shipped in and then we have to have it shipped to us so you pay security for this twice.
i say, get yourself a us mastercard (or visa if they have one) and do not pay the 2.5% difference that is charged when you use your canadian card. get yourself a NO FEE us acct. bmo offers both a chequing and savings us acct that has no fees as long as you have a package plan on your main acct and 95% of the banking population has a pacakage plan on their accts. paying a dollar to get my money out would just piss me off. if your bank doesn't offer you a no fee option, switch banks. money is better in your pocket then a banks!
anyway, just be smart with the money. its yours and whether that means saving the dollar shopping across boarder or swithching banks to save it, do it.:thumbsup2

[RC Fan]

banker here. someone said earlier that their bank manager told them the rate is always better in the am. i say, run and find a new bank manager! if you think about it, that would be logisticlly imposible. the us rate picks up where it left off the day before and them moves up or down, depending on what the economy is doing. if it was always lowest in the morning it would have to keep going up and up, never being able to come down again. hope i said that clear. sounds ok to me, but i'm in my own mind.
the main reason there is a difference between bank of canada exchange rates and bank rates is that when the banks purchase money from the bank of canada they charge a premium. they have to have it shipped in and then we have to have it shipped to us so you pay security for this twice.
i say, get yourself a us mastercard (or visa if they have one) and do not pay the 2.5% difference that is charged when you use your canadian card. get yourself a NO FEE us acct. bmo offers both a chequing and savings us acct that has no fees as long as you have a package plan on your main acct and 95% of the banking population has a pacakage plan on their accts. paying a dollar to get my money out would just piss me off. if your bank doesn't offer you a no fee option, switch banks. money is better in your pocket then a banks!
anyway, just be smart with the money. its yours and whether that means saving the dollar shopping across boarder or swithching banks to save it, do it.:thumbsup2

Thanks for the advice! There is a BMO branch right next to me at work, so I am going to check that out. I buy a lot of stuff online from the States.

[MaryannF]

I bought $1000.00 US at RBC on Saturday and it cost $1,015.00 CA.

[matsterrocks]

Visa / MC exchange rates are normally the Bank of Canada rate, plus a 2.5% service charge.

So at 2.5% $1,000 US would cost me $1,025 CAN if the dollar was on perfect par. On another thread someone stated that it cost him about 8% from a CC?

[tinkerone]

So at 2.5% $1,000 US would cost me $1,025 CAN if the dollar was on perfect par. On another thread someone stated that it cost him about 8% from a CC?


banker again.
you pay the going rate, that is the rate the banks would charge you, and then a 2.5% premium. That premium is just for the honor of using the card. now keep in mind bu using a US card you can charge your purchases, go into the bank when you get your bill and purchase the money or debit your us acct. and you do NOT pay the premium. the premium is just on candadian cc's.

[Hoogy]

I have a RBC Visa and the final payment on our Disney vacation was due about a week ago. We must have been hitting close to parity then because I paid about 2.7% (and 2.5 of that is the credit card fee to exchange)....so no 8% for me. (I checked online to see the charges)

[delta123]

Are travelers checks easy to use on the Disney properties. We are going to take some cash and also our visas but don't like the exchange rate on the visas. Is travelers checks in US funds the way to go?

[MaryannF]

It is common for banks to sell traveller's cheques "commission free" to their customers. The commission, where it is charged, is usually 1% of the total face value sold so ask questions before you buy.

[mom_rules]

Are travelers checks easy to use on the Disney properties. We are going to take some cash and also our visas but don't like the exchange rate on the visas. Is travelers checks in US funds the way to go?

Never had a problem using Amex Travellors checks anywhere in Florida.

[OntFamily]

So at 2.5% $1,000 US would cost me $1,025 CAN if the dollar was on perfect par. On another thread someone stated that it cost him about 8% from a CC?

This has been my experience, plus what I was quoted from my credit card holder (MBNA). Not sure what credit card that user has, but my exchange rate has for the past few years been 2.5% different than the bank of canada rate.

[mom_rules]

Called our Visa and Amex Card offices-the charge the going exchange rate on the date the transaction is posted plus 2.5% "transaction fee".

[Tiger926]

banker here. someone said earlier that their bank manager told them the rate is always better in the am. i say, run and find a new bank manager! if you think about it, that would be logisticlly imposible. the us rate picks up where it left off the day before and them moves up or down, depending on what the economy is doing. if it was always lowest in the morning it would have to keep going up and up, never being able to come down again. hope i said that clear. sounds ok to me, but i'm in my own mind.
the main reason there is a difference between bank of canada exchange rates and bank rates is that when the banks purchase money from the bank of canada they charge a premium. they have to have it shipped in and then we have to have it shipped to us so you pay security for this twice.
i say, get yourself a us mastercard (or visa if they have one) and do not pay the 2.5% difference that is charged when you use your canadian card. get yourself a NO FEE us acct. bmo offers both a chequing and savings us acct that has no fees as long as you have a package plan on your main acct and 95% of the banking population has a pacakage plan on their accts. paying a dollar to get my money out would just piss me off. if your bank doesn't offer you a no fee option, switch banks. money is better in your pocket then a banks!
anyway, just be smart with the money. its yours and whether that means saving the dollar shopping across boarder or swithching banks to save it, do it.:thumbsup2


My hubby is a bank manager as well, and he said the same thing! Good info you posted here.

Tiger :)

[Wazzo]

If anyone is interested in comparing US Dollar credit cards, I found this interesting PDF:

http://www.fcac-acfc.gc.ca/eng/publications/CreditCardsYou/pdfs/USDollar-e.pdf

Looks like BMO is the winner!


Oh, and here is one that shows the service fees on all the different credit cards:

http://www.fcac-acfc.gc.ca/eng/publications/CreditCardsYou/PDFs/ServiceFees-e.pdf

Most seem to be a 2.5% conversion fee.

[matsterrocks]

Called our Visa and Amex Card offices-the charge the going exchange rate on the date the transaction is posted plus 2.5% "transaction fee".
So if a Bank charges you 2.5% transaction fee to convert then it should be no more expensive to use your credit card right.

[tinkerone]

:upsidedow So if a Bank charges you 2.5% transaction fee to convert then it should be no more expensive to use your credit card right.

only if you use your canadian credit card. and to be honest, most people will not notice this charge because it is built into the exchange rate, meaning, if the actual rate you pay at the bank is 1% then you will see the exchange rate of 3.5% on your cc statement. it will not show 1% and a 2.5% premium. they try to trick you and for most it works.
if you us a US cc there is no 2.5 premium. you pay dollar for dollar us.:thumbsup2
hope this is clear.

[OntFamily]

So if a Bank charges you 2.5% transaction fee to convert then it should be no more expensive to use your credit card right.

You are correct. However, most banks will charge less than 2.5% commission for a cash conversion. But, you must go into a bank to get the cash.....

We have to balance convenience (plastic credit card that is always available) vs lower cost (US Cash, but that means going into a bank).


One other option, is getting US Cash from a USA banking machine. You'll have to pay your bank a commission, and potentially a service charge to both your home bank, and the owner of the US banking machine.

[RedRuby]

I didn't expect to get the money for free, but the exchange rate was significantly worse than the real rate.

What do you guys do?

We just use our President's Choice Mastercard for as much as possible, and a relative's bank employee rate for large cash 'purchases' if we plan ahead enough. (If it's last minute, whatever the cash exchange rate is at CIBC, over the counter....)

[sk8jdgca]

Here's a couple helpful hints- If you need cash while in the states, don't use an ATM machine instead go to a walmart/grocery store, purchase something on debit and get cash back- way cheaper on the service charge. One thing in the states there is only chequing- no choice of savings or chequing so make sure your account is coded chequing on your card

You can usually get a better exchange rate by doing an online transfer from your canadian account to your US account and do it after the markets have closed

[sk8jdgca]

last week I got 100.50 USD for 100 CAD. this week 17USD for 17CAD-yahoo!

[ChisJo]

Here's what I don't understand....I just exchanged $450 canadian and only got $440.71 back from CIBC....I put that right into my USD account and they said that was the best exchange I was going to get....But when I read these boards, everyone else is getting a WAY better exchange than me....Is CIBC robbing me???

[tinkerone]

Here's what I don't understand....I just exchanged $450 canadian and only got $440.71 back from CIBC....I put that right into my USD account and they said that was the best exchange I was going to get....But when I read these boards, everyone else is getting a WAY better exchange than me....Is CIBC robbing me???

thats close, but i know that bmo's rate at least on friday, was better than that. and if you know anyone who works for a bank, talk with them. i paid 196.98 cnd and got 200 us. this is what i paid on friday. each day brings a new exchange rate so just watch it.

[OntFamily]

I was in Niagara Falls, ON this weekend. The currency exchange booths were buying US dollars @ $0.94 Cdn (4 basis points lower than the going rate). I'm sure any bank in the area would have given a slightly better rate, but the exchange booths are conveniently located (so you pay a premium...).