Currency Exchange Toronto Rates
Looking for the best currency exchange rates in Toronto that provide better than bank currency exchange rates? Call Knightsbridge Foreign Exchange Toronto (www.knightsbridgefx.com) at (416) 479-0834 for a no-obligation currency exchange rate quote.
Toronto Canadian Bank Exchange Rates Comparison
It is a good idea to keep an eye on exchange rates as you never know when they may be in your favour. There are several ways to do so the most common being to call one of the big Canadian banks or your currency exchange provider for a rate. Alternatively, banks and currency exchange providers more often than not, have websites that provide a live quote. The difference between banks and other currency exchange providers is that banks often have huge markups as can be seen below.
|
Bank |
Spread % |
Source |
|
|
Royal Bank of Canada (RBC) |
2.6% |
||
|
TD Bank |
2.6% |
||
|
Scotia Bank |
2.8% |
||
|
Bank of Montreal (BMO) |
2.6% |
||
|
CIBC |
3.3% |
||
|
Desjardins |
2.5% |
||
|
HSBC |
2.1% |
||
|
Knightsbridge FX |
0.1%-0.5% |
Knightsbridge FX - (416) 479-0834 |
You’re probably asking yourself, why do banks charge so much more than a company such as Knightsbridge FX? The reason is quite simple; banks have a lot of overhead costs such as salary and rent in divisions that aren’t even related to foreign exchange! As a result you’re paying extra money to help them fund other parts of their business. With the internet and information all around us, we can make a smarter decision and beat the big guys. To do so, just pick up your phone and call the bank for a no-obligation quote on an amount such as US$1,000. You can then call another currency exchange provider such as Knightsbridge FX for a quote on the same amount. This will give you a clear idea as to how much money you can potentially save by considering an option besides the bank. Regardless of who you choose, both options should give you a discount on larger transactions.
(It is important to remember that exchange rates fluctuate in real time and are constantly changing based on market events.)
The Best Place In Toronto To Buy And Sell US Dollars
- Large Currency Exchanges (Above $5,000)
So let's be honest here. Banks already make plenty of money. Why should we put money in the big bank executives' big pockets when we could save on that and use it on something really meaningful? The answer is, we can, on denominations over US$5,000. Banks have massive markup fees and if you go to other currency providers like Knightsbridge FX will save you 25% or even more when compared to the exchange rates offered by banks. That is due to the fact that companies like Knightsbridge FX are currency exchange specialists and call banks daily to guarantee the lowest exchange rates for Canada. That is because they have lower expenses and overhead costs and are able to provide you with a much more reasonable and lower rate. They can be reached at (416) 479-0834 or you can go to KnightsbridgeFx.com to visit their company website. Normally it only takes a maximum of 15 minutes to get a US bank account opened if you have a Canadian bank account already set up. Bank transfers occur immediately and electronically.
- Small Currency Exchanges (Below $5,000)
Exchange amounts of currency over $5,000 is not always possible. We might not have that much to spend or maybe we don't need that much money for what we need. For example, a week-long cruise or vacation in the US most likely won't cost you over $5,000. Unfortunately, there isn't a lot you can do to save the same amount of money that you would on transactions that are more than $5,000 with Knightsbridge FX and similar companies. However, there are a couple of things that you can take into consideration when choosing the provider that best aligns with your needs. For example, if you do business with a bank or do many foreign transactions they may be able to offer you more competitive rates. Otherwise, a majority of banks in Canada offer fairly similar rates. So at that point, the determining actor might be based on convenience or how close the bank is located to you. Another thing to take into account is whether or not the company holds your desired currency. For instance, TD foreign exchange services have more than 50 currencies that they are ready to sell to you and in Toronto can be a very good option. Or you can simply call the bank or other location in advance that you want to use and ask if they are able to get the currency that you want. Remember that a large markup is charged by banks and the exchange rate that they offer you is called the "cash rate." However, the rate that you see in the newspaper or on the business news is referred to as the "spot rate." Quite often the "cash rate" is 2 to 3% higher compared to the spot rate. There try to save up your transactions until you need $5,000 at least, if possible, to save on your exchange rate with companies such as Knightsbridge FX.
- Which Bank In Toronto Offers The Best Exchange Rate
We could spend lots of time talking about banks offer the best rates. However, ultimately, they charge large markups and the differences between them are very small. The most important thing is to find a provider or bank that is in good alignment with your own currency exchange needs and habits. That said, if you really want to find the bank that offers the lowest rate, then HSBC is that bank. That is due to the fact that HSBC is an international bank that has international clients that have many foreign exchange needs. They naturally specialize in that service and are among the best of all Canadian and global banks. However, there is one major drawback that comes with choosing HSBC and that is its locations. Because HSBC is an international business, it does not have a lot of locations in Toronto. So if going to an HSBC location is inconvenient for you, then the small amount of money that you save might not be worth it for you. Another consideration is the frequency or amount of money that you exchange currency. So if you wanting to trade at least US$5,000 on a frequent basis, consider going through a company such as Knightsbridge FX that can save you at least 2% on every transaction. So on just one $5,000 transaction, you would save at least $100. That might not seem like a lot, but keep in mind that the bigger the transaction is the more money you will save and that is extra money inside your pocket ultimately.
If you do not exchange money frequently or when it is less than $,500, you can go through any Canadian bank. Other options, other than HSBC if that is not convenient, include TD and RBC BMO at a cost that is slightly higher. If you travel on a frequent basis to the United States, a majority of banks do offer "borderless" services which can provide more competitive rates to you. TD borderless exchange is an example that will usually be .7 less than the standard rate that is offered. Remember, a company like Knightsbridge FX still can offer 2% or more in savings, including on borderless rates.
Beginner Currency Exchange Tips
Don't use airports. We have all experienced this. We are rushing around to leave and have everything pack and then get to the airport and discover we forget something. It was shoes on the last trip, but this time what you forgot was your currency. Things like this happen, but remember that airport rent along with the convenience report result in higher markups compared to banks and other services. Plan ahead whenever possible and get your currency exchanged before you go to the airport.
No commission and service charges. Credit cards sometimes come with shocking and hidden interest rates and fees. This can also be true with currency exchange. At times, currency exchange providers or banks might have commissions and service charges. If you negotiate or ask nicely, usually you can get those charges and fees waived.
- Currency Exchange for First Time Users
You have been accepted into a US school or got a job there. What is next? You will most likely need to pay for tuition and might need to send money to family in Canada. Well, if you haven't done any of this before, that's not a problem since we have written down some of the most important information to help ensure your first experience with foreign exchange an easy and smooth process.
Registration
Registration is normally the first step that you take to exchange currency. Whether you use a bank or a different currency exchange provider, it is necessary to go through the registration process for the provider or bank to comply with all of the regulations and laws that have been imposed by FINTRAC and the Government of Canada. Before you register with a provider it is usually a good idea to conduct background research to make sure that the provider is the right one for you.
Never use a company that doesn't require your identity to be confirmed.
The LCBO requires your ID in order to enforce the legal drinking age, money service and foreign exchange companies are required to confirm your identity to make sure you are actually who you claim you are and make sure there is no funny business. When a company requires for your identity to be validated it is complying with the regulations and laws that have been imposed by FINTRAC and Canada. Do not trust any company that doesn't require this.
How to Choose a Company
Usually, you just need to do is call your bank or another other foreign exchange service or bank in Canada. However, it is nice to know there are plenty of foreign exchange providers that are available. You can find a number of results by just looking in the Yellow Pages or do a quick Google search. There are also online forums that have discussions and opinions on who the best providers are. When you are exchanging more than $5,000, then there are companies besides banks like Knightsbridge FX that offer reasonable and low rates and will save you at least 2%.
Timing
It can be hard to time the market and do foreign exchange transactions at the optimum time. However, timing can still be used to your advance in order to minimize the life's inconveniences and hassles. For example, you need to get some Canadian dollars exchanged for US dollars in just two days. But on your way driving over to exchange your money your car ends up breaking down. The bank is about to close and you are stranded on the side of the road. These types of problems are easy to avoid but if you follow a basic rule of getting your money exchanged one day in advance at least then that can really help. This can help you avoid problems that you are not anticipating but you can monitor your exchange rates as well and have a better chance of exchanging current when the rates are favorable to you instead of having to settle for the rate on the last day.
- When Is The Worst And Best Time To Exchange Your Money?
Who really knows where the markets are headed? Sideways, up, down? Realistically speaking, there really is no worst or best time throughout the week to exchange money. That is due to the fact that foreign exchange markets are controlled very efficiently by forces like supply and demand. The best thing you can do is make sure you monitor the exchange rates and then get your money exchanged whenever the exchanges rates are close to or at the rate you desire. Remember, exchange rates sometimes go in an unfavorable direction for you. At that point, you can either wait or them to return or simply exchange your money if you believe the rates are going to get even worse.
Generally speaking, it is good to avoid weekends to exchange money. Most markets are closed on the weekend so a depreciation risk has to be taken on by currency exchange providers for holding currency over the weekend and currency supply is usually less liquid at that time. This results in exchange rates at other currency exchange providers and banks will be higher on the weekend.
- How Do You Make Sure You Get A Better Exchange Rate Than What Your Bank Offers?
In general, when amounts are less than $5,000, it usually isn't worth it to spend a lot of time searching for the best rate since the savings amount is small. However, it always is good to save money and if you do not mind spending the time or are exchanging at least $5,000 then doing a quick comparison can help you save quite a bit of money. Calling your bank is the first step and obtain a quote on a certain amount like $1,000. Then call a foreign exchange provider and also ask them for a quote. The difference between the two quotes will be your cost savings that can then be used to see if it is worth using a foreign exchange provider. For both of these options, you should get a better rate as you increase the transaction amount so do further inquiries if that isn't the case or look for a different provider.
- How To Conduct A Physical Money Currency Exchange At Each Bank
A majority of Canadian banks work in similar ways and there is staff available at their retail locations that can assist you with the process. If you want to exchange physical cash, you just need to walk up to the counter and then ask them what you need to do to start the process. At times, banks will have certain locations that are dedicated and specialize in foreign exchange. The foreign exchange centre of TD's in downtown Toronto is an example and you can call them at 416-216-6868. So if you can wait to exchange your money until you need to have $5,000 at least, then you can consider going with Knightsbridge FX. That can save you at least 2%, which on a $5,000 transaction will save you around $100, and that is definitely a better option than the bank keeping that.
Requirements For Physical Cash Currency Exchanges
It is simple to exchange physical cash but a few things are required. You will need to supply identification and probably some other documents like a bank statement. The uses and sources of the transaction will also need to be described for the foreign exchange provider to be in compliance with regulations and rules that are set forth by FINTRAC and the Canadian government. You can save money and time if you can use the electronic transfer option.
Physical Cash Currency Exchange Requirements
Exchanging physical cash is simple but requires a few things. You will have to provide identification and likely other documents such as a bank statement or draft. In addition the sources and uses of the transaction will need to be stated in order for the foreign exchange provider to comply with rules and regulations as set out by FINTRAC and the Government of Canada. If possible consider an electronic transfer option to save time and money.
Travel
- When travelling, how can you save on your Foreign Exchange Rates?
You are travelling and ran out of the local currency. That can be easy to do when you are having fun. Fortunately, there are usually options that are available in the travel location for exchanging currency. You could use a credit card but the markup wit be about 2.5% and local currency exchange services and middle market exchange rates will probably be similar. If the markup is higher than 2.5 to 3% try to find a different provider or see if you can negotiate a lower rate.