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

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.

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?".

 

[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!
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.

 

[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!
My SMALL stand!

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

 

[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.

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!!