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% |
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|
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 Places To Sell Or Buy US Dollars Exchange In Toronto
Large Currency Exchanges Above $5,000
Let’s be frank, most banks are already making far more money than they should. Why should you contribute to lining the large bank executives pockets when you could save some of this money and spend it on something important to you. Well, when considering denominations over US $5,000, this becomes possible. The banks charge a significant markup fee while using an alternative exchange provider like Knightsbridge FX can easily save you 2% sometimes even more compared to the exchange rates at banks.
Knightsbridge FX specialises in currency exchanges and is in contact daily with the different banks to ensure that they can offer you the lowest of the exchange rates possible in Canada. These currency exchange services also have overhead costs and expenses that are lower which means they are able to offer you rates that are far more reasonable. You can either visit the website at KnightsbridgeFx.com or call them at (416) 479-0834. It typically takes 15 minutes to open your own US bank account, when you have a bank account in Canada, and the bank transfers occur immediately and electronically.
Currency Exchanges Below $5,000
Many people do not always have over $5,000 to exchange, or your requirements do not involve this amount of money. For instance, if you have plans to take a cruise or vacation for a week in the US, you probably won’t need that much. However, there are no options to really save like you would on the transactions that are more than $5,000 with a company like Knightsbridge FX. Yet there are still a few considerations to keep in mind to ensure you have chosen a provider who can align with your needs.
If you conduct regular foreign-based transactions or your business is with a specific bank, these institutions may be willing to offer rates that are more competitive. In general, most of the banks in Canada provide very similar rates. When it comes to this point, convenience and closeness should become your deciding factor. One of the other important considerations involves making sure the bank has stock of the currency you are interested in exchanging. For instance, TD Foreign exchange services hold more than 50 currencies which are ready for sale and is one of the better options in Toronto.
You can also call the bank or location you are interested in using and find out whether they are able to obtain the currency that you need. Remember that banks are known for charging a significant markup, while the exchange rate that you will be given is known as the “cash rate”. The rates that you will see in the newspapers or business-news outlets are known as the “spot rate”. The “cash rate” is in most cases 2 to 3% higher in comparison to the “spot rate”. When possible it is always recommended to save the transaction until such stage that you have $5,000 or more, in order to save on your exchange rates when you use a company like Knightsbridge FX.
Which Of The Banks Have The Best Exchange Rates In Toronto?
We could tell you which of the banks offer better exchange rates when compared to others, yet, to be honest, all the banks charge a large markup and these differences are actually quite minimal. What is more important would involve finding a provider or bank that is in alignment with your habits and interests when it comes to currency exchange. With this in mind, if you prefer to still use a bank that offers the lowest rates, this bank would be HSBC.
This is one of the international banks that service international clients that have various foreign exchange requirements. They are naturally specialised in these services and are rated among the best when it comes to both global and Canadian banks. The one drawback about HSBC is its limited locations in Toronto. If you find it inconvenient to travel to the closest HSBC bank, the savings on your currency exchange may not be worth your while.
Another important consideration has to with how regularly you conduct exchanges and the amount. If you are interested in trading $5,000 US or more, or you are exchanging money often, you should seriously think about using a business like Knightsbridge FX, where you can save 2% or more when it comes to every transaction. This would mean that on a transaction of $5,000 you would be saving $100 or more. This amount does not appear like much, yet remember that for larger transactions you get to save even more, and this puts more money back into your pocket.
Beginners Currency Exchange Tips
Stay away from airports. Many of us have gone through the experience when we are rushed and we are sure that we packed everything needed for our trip. Only to find out we have forgotten something. The last time it may have been shoes and maybe this time you have forgotten to exchange your currency. These mistakes do happen, yet the convenience factor of exchanging at an airport results in a significant markup which is even higher than the banks along with other locations. When possible, make sure that you have planned ahead, by exchanging your currency well before your flight.
No commission or service charges. Credit cards are often linked with sometimes shocking and hidden interest levels and fees. When it comes to currency exchange some of the exchange providers and banks have their own hidden commission fees and service charges. If you negotiate or ask nicely, you may get these charges or fees waived.
Currency Exchange For The First Time Users
If you have just recently found out that you need to relocate to the US for a new job position, or you are accepted into a university or college, do you know what to do next? You will probably need to pay for your tuition fees or you may have family in Canada that you want to transfer money to. If you have never attempted this before, here is some important information to ensure your first foreign exchanges are made easier.
Registration
The initials step to most currency exchanges involves registration. Regardless of whether you go through a currency-exchange provider or a bank, registration is one of the necessary requirements for these institutions to follow the regulations and laws set out by the Canadian Government and FINTRAC. If you are interested in finding out more, visit the FINTRAC website. Before registering with a provider, we recommend conducting your own background checks to make sure you are dealing with the right provider for your needs.
Avoid Using The Companies That Do Not Ask You To Validate Your Identity
Similar to how the LCBO will ask for ID in order to enforce the legal age for drinking, the money service and foreign exchange companies have to validate identities to make sure you are the person that appears on your ID card and that you are not trying to attempt any fraudulent transactions. The companies that ask for your identification comply with the regulations and laws of FINTRAC and Canada. Any company that has not asked you to produce your identification cannot be trusted.
How To Choose A Company
In general, you are able to contact any of the banks in Canada and ask for their foreign exchange department or services. However, it is also good that you know that there are other providers other than the banks. A search through your local Yellow Pages or a Google search online should offer you with positive results. You can also find forums online that discuss and recommend the best providers in your area. If you plan to exchange over $5,000, businesses like Knightsbridge FX that can provide you with reasonable and lower rates with a saving of 2% or more.
Timing
It can be a complex task to monitor the markets when it comes to conducting a foreign exchange at a favourable time. However, you can still use timing to your advantage to lower the general inconveniences and time delays of life. For instance, if you have to exchange your Canadian dollars into US dollars in 2 days. Unfortunately, you experience car problems on the way to the provider. The delays cause you to miss the bank and it closes.
Issues such as these are easy to avoid by making sure you exchange your money at least a day or more in advance. This will assist you in avoiding any unanticipated issues and a way to watch the exchange rates which can improve your chances of exchanging when the rates are in your favour, rather than having to settle for the rate available on the last day.
When Is The Worst Or Best Time To Exchange Money?
Not many people know which way the markets will go. Realistically there is no worst or best time for exchanging your cash during weekdays. This has to do with efficient foreign-exchange markets that are typically controlled by demand and supply. You can monitor these rates and then exchange your cash when you find the rates at your desired or close to rate. In some cases, the exchange rates might move in an unfavourable direction.
If this is the case, you only have two options. The first would be to wait until the exchange rates move in a favourable direction again, or go ahead and exchange your money anyway as these rates might get worse.
Generally, you should avoid trying to exchange your money on a weekend. The markets are mainly closed over the weekends so the providers of currency exchange take on depreciation risks when holding currency over a weekend period, and in general, the supply of currency is a lot less liquid during these times. This often results in exchange rates that are higher at the currency-exchange providers and banks over the weekends.
How To Make Sure You Are Obtaining An Exchange Rate That Is Better Than Your Bank
In general, the amounts under $5,000 is not really worth your time and effort to search for the best rates. However, saving your money when possible is the best idea if you are able to wait until your money gets to $5,000 or more. From here you can conduct a quick comparison of the different providers and you will usually notice that you can save a surprising amount.
You should first contact your bank in order to receive a quote on a smaller amount such as $1,000. From here contact the foreign-exchange providers in your area and ask them for their quote on $1,000. The differences between these quotes will show you which provider can save you the most money. For both these options, the rates should improve as the transaction amount increases, so ask about this before you decide on the best provider for your needs.
How To Conduct A Physical Cash Currency Exchange At A Bank
Many of the banks in Canada operate in a similar way and will have employers in their retail locations that will assist you through these processes. If you want to exchange cash physically, it usually just involves going to the right counter. In some cases, the banks have a special location that is dedicated to foreign exchanges. For instance, TD’s has a foreign-exchange centre based in downtown Toronto. You can call them at 416-216-6868. If you are able to wait when it comes to exchanging your money until you reach at least $5,000 then Knightsbridge FX is one of the best places to go. This company will save you at least 2% or more, which translates to $100 on every $5,000 transaction which is obviously better than giving these savings to your bank.
Requirements For Physical Cash Currency Exchanges
Exchanging cash physically is easy but still comes with a few requirements. You have to produce your identification along with other documentation like a draft or bank statement. You will also need to state the use and source of the transaction to ensure that the provider of the foreign exchange is complying with the regulations and rules linked with the Government of Canada and FINTRAC. When possible use electronic transfer to save money and time.
Travel
How To Save On Your Foreign Exchange Rates When You Travel
If while travelling your local currency runs out, there are options available to you. You could decide to use your credit card which usually comes with a 2.5% markup on the middle-market exchange rates. Or you can use a local-based currency exchange provider who also has markups that are similar. When the markup exceeds 3%, try to negotiate or find an alternative provider.