To make sure you're getting the best deal, the best currency exchange service is from Wise, which gives you full transparency on their fees. But going into your bank to get your money exchange is a safe option as well, though nothing beats skipping the fee altogether with a no foreign transaction fee credit card.
In this article, we'll go over some tips on saving money using currency exchange services, as well as a few suggestions for the best products.
Key Takeaways
- You can usually get decent currency exchange rates at banks.
- You can also get good exchange rates online.
- Credit cards are another option, but only if you opt for one with no foreign exchange fee.
Big savings could exist if you do currency exchanges online
- Upside: With lower overhead, the rates can be better than brick-and-mortar banks.
- Downside: Not all currencies may be available, and it may take some time to get your money.
Online currency exchanges offer unbeatable convenience since you don't need to go into a physical currency exchange business or bank to swap out your Canadian dollars. You can send money to your account with ease, and within minutes, you'll have your new currency in your account.
Best online currency exchange service: Wise
Outside of banks, Wise has one of the best currency exchange systems in Canada. The exchange rates are transparent and lower than most of the brick-and-mortar currency exchange places, and it's extremely convenient. You can easily transfer money by wire transfer or Interac e-Transfer.
When using their exchange portal, all the fees and the amount of time it'll take to get money into your account are listed.
From there, it will only take a few clicks to convert your Canadian dollars into one of over 40 supported currencies. It's also secure, boasting 2-factor authentication and is registered with FINTRAC, meaning it complies with Canadian compliance standards.
- USD: Start at $7.40
- EUR: Start at $6.34
- GBP: Start at $6.78
- INR: Start at $8.21
- CNY: Start at $15.66
- Direct debit: $9,500/day, $30,000/week
- Debit/credit: $3,000/transfer
- Interac e-Transfer: $25,000
- Bill payment/wire transfer: $1.5 million
Wise, formerly known as Transferwise, is an international money transfer service that allows users to send funds to 80+ countries, including Wise transfers in Canada. Transferwise was launched in 2011 by two friends from Estonia. The company started out offering international money transfers, and soon grew to include multi-currency accounts, business accounts, and a debit card. In 2021, Transferwise changed its name to Wise.
- Cheap international money transfers
- Transparent fee structure
- Free multi-currency account to hold over 40 currencies
- FINTRAC regulated in Canada
- Ability to enable two factor authentication (2FA)
- Your Wise account can be deactivated with no reason given
- Limits on the amount that can be transferred
- Relatively small list of countries
- No hidden fees or markup
- USD: Start at $7.40
- EUR: Start at $6.34
- GBP: Start at $6.78
- INR: Start at $8.21
- CNY: Start at $15.66
- USD: Same day
- EUR: Same day
- GBP: Same day
- INR: Same day
- CNY: Same day
- Direct debit: $9,500/day, $30,000/week
- Debit/credit: $3,000/transfer
- Interac e-Transfer: $25,000
- Bill payment/wire transfer: $1.5 million
An alternative exchange app: XE
We'll gloss over the international money transfer part of the app for this one. XE allows a little bit more flexibility in that you can convert your money to 65 currencies. If you're abroad, you can also pick up cash at over 500,000 locations around the world. An example of this is Walmart if you're in the U.S.
In terms of the value of an exchange, XE takes the mid-market currency exchange rate, which is generally known to be good as this is the wholesale rate that banks will get. The downside is that XE itself will levy its own exchange fees as well, which are not as transparent as what you'd see on Wise.
Using a credit card for maximum convenience
- Upside: Very convenient. You use your credit card just like you would back home.
- Downside: You're gambling on the exchange rate being good while you're on vacation.
You can skip the extra work of going into a bank or tracking prices for weeks by using a credit card. Normally, you'll have to pay a 2.5% foreign exchange fee, but the best no foreign transaction fee credit cards waive this fee entirely. Some even have a way to withdraw cash from foreign ATMs with no cash advance fee.
If you can predict that the exchange rate will remain mostly the same, this is a good option. It's also the most convenient since you won't need to strategically pre-buy any currency.
Best credit card with no foreign exchange fee: Scotiabank Gold American Express Card
One such card is the Scotiabank Gold American Express Card, which waives this fee entirely. This card also gets a standing ovation for its excellent earn rates and flexible redemptions.
$60 GeniusCash + Up to 50,000 bonus points + No foreign exchange fees.*The Scotiabank Gold American Express Card is one of the best flexible rewards credit cards around. Earn 6 Scene+ points when shopping at any Sobeys store (including Safeway, Foodland, IGA, and Freshco), while earning up to 5 points per $1 spent on all other purchases. You can also earn up to 50,000 bonus Scene+ points.
- Genius Rating:
- Rewards rate: around 2.45%
- Our credit estimate: Good (660-725)
- Welcome bonus: up to 50,000 bonus Scene+ points* (Ends 2025/10/31)
- Annual fee: $120, 1st year free
- Interest: 20.99% on purchases, 22.99% on cash*
- FX feature: 0% FX fee
- * See rates and fees
- It'll take you to the bank's secure site.
- You'll get the chance to read the offer and product details.
- If you choose to apply, filling the form should take between 10 to 15 minutes.
GC: $60
- It'll take you to the bank's secure site.
- You'll get the chance to read the offer and product details.
- If you choose to apply, filling the form should take between 10 to 15 minutes.
A non-Amex credit card option: Scotiabank Passport Visa Infinite
If some of your main shopping destinations don't accept Amex, we've also got another no foreign exchange fee credit card that you can make the most of – the Scotiabank Passport Visa Infinite.
The earn rates are a little lower and you'll get a little less insurance, but it may be worth it if you're vacationing in a place that is less likely to accept Amex. You'll also get 6 free lounge passes if you elect to go with this card.
$30 GeniusCash + Up to 45k bonus Scene+ points in year 1 + 6 free airport lounge passes.*Why pay 2.5% when you don’t have to? Get the travel credit card that has it all. Pay 2.5% 0% in foreign exchange fees when spending globally, get 35,000 bonus Scene+ points*, up to 3 Scene+ points per $1 spent, and 6 free airport lounge passes annually.
- Genius Rating:
- Rewards rate: around 1.35%
- Our credit estimate: Good (660-725)
- Welcome bonus: up to 35,000 bonus Scene+ points* (Ends 2025/10/31)
- Annual fee: $150
- Interest: 20.99% on purchases, 22.99% on cash*
- FX feature: 0% FX fee
- * See rates and fees
- It'll take you to the bank's secure site.
- You'll get the chance to read the offer and product details.
- If you choose to apply, filling the form should take between 10 to 15 minutes.
GC: $30
- It'll take you to the bank's secure site.
- You'll get the chance to read the offer and product details.
- If you choose to apply, filling the form should take between 10 to 15 minutes.
Use the currency exchange at your bank for trusted, fair rates
- Upside: Convenient, trustworthy, and comparable rates.
- Downside: Big banks may not have as good of a rate compared to online options, which will have less overhead.
Banks in Canada are one of the best currency exchange services because generally, the advertised exchange fees aren't too high, if there are any at all. Keep in mind that the banks want to make a profit as well, so there is a "spread" (a difference between how much the bank bought the currency for and how much they sold it to you for).
Pro tip: Avoid travel money exchange kiosks at airports when you're travelling. Those often serve to catch tourists who hadn't bought the local currency and are often highly marked up.
For the most part, the banks are mostly comparable in terms of rates, so whatever bank you're using will probably be the best in terms of convenience.
How to get the best international currency exchange rate
To get the best international currency exchange rate, it pays to do your research. Compare your bank's options to what online alternatives there are, as well as well-known currency exchange companies in your area. Most importantly, exchange your money before going so you aren't pressured into doing it in your destination country at inflated exchange rates.
You may also want to keep tabs on the world economy, but that might be a bit too much work, so here are some more basic ways to save money on foreign exchange fees.
1. Watch market trends
You'll want to watch the market over time. If you have a trip planned months in advance (which is usually the case so you can save some money), you can follow the exchange rate during the months leading up to your trip, buying at times where the trends suggest you'll be getting the best price.
2. Use credit cards wisely
If you've run out of cash or prefer to use a credit card, be sure it's one with either no foreign exchange fees or a prepaid credit card that is loaded with the local currency.
3. Avoid converting currency back to Canadian dollars at the end of a trip
You'll also want to do the best to spend all the cash you have on hand before leaving your destination to avoid having to exchange the money back later. Unless of course, you plan on returning soon (or often).
Do you have any currency conversion horror stories?
Have you either lucked out with amazing currency conversion rates or been left out to dry by buying foreign currency at just the wrong time?
What banks, services, or companies do you recommend?
Leave a comment below if you have anything helpful for our readers.
FAQ
How do currency exchanges work?
Currency exchanges facilitate converting one currency into another. You can trade in Canadian dollars for other currencies online, at a bank, or at a currency exchange. There are often fees or spreads that will be factored in, so be sure to do your research to find the best rates before converting.
Do airport currency exchanges give you good rates?
No, in nearly all cases, airport and railway travel money exchanges give severely inflated exchange rates compared to getting your money exchanged at a bank. This is because it's a captive market where unprepared people who had not exchanged money prior to landing can be taken advantage of.
Do you have to order foreign currency from your bank?
No, there are plenty of other options including online currency apps, in-person currency exchanges, and using your credit card.
Leave a comment
Comments