Canadian Currency Exchange
What’s the best way to convert your currency into Canadian dollars?
Whether you’re exchanging Euros, US dollars, Chinese yuan, or another currency, it depends on how much money you’re moving.
For smaller purchases, convenience is key. Make your purchase using a credit or debit card, and the currency exchange is automatic. Banks and credit card companies typically charge currency exchange fees of 2% to 3%.
For larger purchases such as buying a car or a home, or for recurring payments for tuition, rent, or a mortgage, you can save a lot of money by finding a low exchange rate. It pays to shop around for a better rate.
You can exchange currency at banks and at foreign exchange (“forex”) or money transfer services. Online currency exchange services generally have better rates due to their higher volumes and lower costs.
Some currency exchange services charge a commission. Others are commission-free, and instead make their money with higher rates. Commission-free isn’t necessarily better; what matters is how much money you receive from the exchange. For example:
COMPANY X COMPANY Y Amount to Exchange 1000 Euros 1000 Euros Exchange Rate 1.410 1.510 Commission NONE $10 CAD You Receive $1410.00 CAD $1500.00 CAD
Tips for saving money on Canadian currency exchange:
- Exchange your money in Canada or via a reputable online service.
- Avoid exchanges in airports, train stations, or hotels.
- Exchange larger amounts to get more favorable rates and save on commissions.
- Follow currency exchange trends to time your exchange.
- Request a quote before you make an exchange.
- Use an online currency exchange service to get the best rate.
Photo by rick (Flickr)
