Currency Converter

Currency Exchange in Canada: Getting the Best Rate

The Bank of Canada publishes daily indicative exchange rates at noon Eastern time, based on a survey of the interbank market. These mid-market rates represent the midpoint between buy and sell prices and serve as the benchmark for fair value. However, no consumer will receive the mid-market rate — every currency exchange provider adds a spread (markup) to profit from the transaction. The size of this spread varies dramatically between providers.

Canadian banks typically charge a 2–3% spread on foreign exchange, embedded within their “sell” rate. Fintech services such as Wise (formerly TransferWise) and Revolut offer rates within 0.3–0.7% of the mid-market rate, plus a small transparent fee. Credit unions and dedicated foreign exchange brokers (like KnightsbridgeFX) often fall between the two. Airport kiosks consistently offer the worst rates, with spreads of 5–10% or more.

Typical CAD/USD Exchange Costs on $1,000

For Canadian investors holding US-listed ETFs, Norbert’s Gambit remains the most cost-effective method of converting large sums between CAD and USD. This strategy involves buying an interlisted stock (such as DLR/DLR.U) on the TSX in CAD, journalling the shares to the US side, and selling in USD — reducing conversion costs to a fraction of what banks charge.