Canadian banks provide essential foreign currency exchange services for travelers, businesses, and individuals handling international transactions. These services offer convenience through extensive branch networks and digital platforms, though they often come with markups and fees that impact the final amount received.

Overview of Services

Major banks like RBC, TD, Scotiabank, BMO, CIBC, and National Bank dominate the market for currency exchange in Canada. Customers can buy foreign cash, exchange back unspent currency, or conduct wire transfers in over 40-65 currencies depending on the institution.

TD Bank supports over 50 currencies with options for online orders via EasyWeb, in-branch purchases, or bank drafts as secure alternatives to cash. RBC offers more than 40 currencies online or in-branch, with preferential rates for digital Click & Collect orders. Scotiabank provides access to over 65 currencies primarily through branches, emphasizing security for travel needs.

BMO handles over 60 currencies via online banking or branches, while CIBC caters to newcomers with online orders and home delivery options without upfront ordering fees. National Bank focuses on popular currencies with online ordering tools.

These banks typically require customers to hold an account, limiting services to account holders for better rates and priority access.​

How to Exchange Currency

Exchanging at Canadian banks starts with checking live rates on bank websites or apps. Tools like TD's Currency Converter provide real-time quotes for planning.​

Online Ordering Process

  • Log into your bank's platform (e.g., TD EasyWeb or RBC Online Banking).

  • Select the currency, amount, and pickup branch or delivery option.

  • Delivery takes 2-10 business days; common currencies like USD, EUR, GBP arrive faster at most branches.

In-Branch Exchange

  • Visit a branch with ID and account details.

  • Major currencies (USD, EUR, GBP) are often available immediately; others require ordering.

  • Return unspent foreign cash post-trip for exchange back to CAD, typically at the same branch.​

Processing times vary: TD aims for 2-3 days, BMO up to 7 days, and RBC 3-10 days. Fees apply except for internal TD account transfers.

Exchange Rates and Fees

Banks do not use mid-market rates; they add markups of 2.5%-3% above interbank rates to cover costs and profit. For instance, converting CAD 1,000 to USD at a 2.75% markup loses about CAD 27.50 upfront, plus potential wire fees of CAD 10-30.

Bank Markup on Rates Additional Fees Notes 
RBC Varies by branch; 0.5%-1% above interbank for select currencies Delivery/handling; wire fees Preferential online rates
TD ~2.5%-3% No upfront; embedded in rate; delivery extra 50+ currencies
Scotiabank Mid-market + markup Service fees per transaction Branch-focused
BMO FX conversions 0.5%-1% above interbank Shipping/handling Online collection
CIBC Competitive for newcomers No ordering fee; rate markup Home delivery
National Standard bank markup Transaction fees up to $9,999 Online rates tool ​

Rates fluctuate daily and differ between buying (bank sells foreign currency) and selling (bank buys back). Scotiabank lists buy/sell prices for non-cash up to $9,999.

Pros and Cons of Bank Exchanges

Advantages

  • Nationwide branches (e.g., TD and RBC have extensive networks abroad too).​

  • Integrated with chequing/savings accounts for seamless transfers.

  • Secure handling with guaranteed bank drafts.​

  • Digital tools for rate checks and orders enhance convenience.​

Disadvantages

  • Higher costs than specialized providers like KnightsbridgeFX or Interchange, which offer rates closer to mid-market.

  • Account holder restrictions exclude non-customers.

  • Slower processing for exotic currencies.

  • Variable branch rates lead to inconsistency.​

For occasional small exchanges, banks suit most needs, but frequent users or large amounts benefit from comparing non-bank options.​

Comparison Across Major Banks

Feature TD ​ RBC ​ Scotiabank ​ BMO ​ CIBC ​
Currencies Offered 50+ 40+ 65+ 60+ Varies
Online Ordering Yes Yes Limited Yes Yes
Delivery Time 3-7 days 3-10 days Branch pickup Up to 7 days Varies
Best For Digital users Global reach Travel security Domestic Newcomers
Rate Markup 2.5-3% Varies Standard 0.5-1% Competitive

TD excels in digital banking and currency variety, while RBC suits international needs. BMO and CIBC prioritize convenience for locals and immigrants.

Tips for Better Rates

Monitor rates using bank converters before committing. Order during off-peak times to avoid rate spikes. Opt for online Click & Collect for discounts at RBC.

Avoid airport or hotel exchanges, as banks offer superior rates. For businesses, inquire about corporate accounts with negotiated rates. Track expenses with apps linked to bank accounts for refunds on unspent currency.​

Combine with credit cards offering no foreign transaction fees for larger trips, minimizing cash needs.

Alternatives to Banks

Non-bank providers like KnightsbridgeFX emphasize lower fees and better rates for high-volume exchanges. Interchange Financial focuses on competitive pricing via phone. Digital platforms such as Wise provide instant conversions at 0.33% fees, ideal for transfers without physical cash.

Banks remain preferred for trust and integration, but alternatives save 2-5% on larger amounts.

Business and International Transfers

Banks facilitate wire transfers to foreign accounts in 43+ currencies, with Scotiabank and RBC strong for global reach. Fees include processing (CAD 10-50) plus intermediary bank charges. Processing takes 1-5 business days.

For importers/exporters, forward contracts hedge rate risks—available at larger banks like TD.

Canadian banks' foreign exchange services blend reliability with accessibility, making them a go-to despite premiums. Frequent users should compare rates daily and explore hybrids like bank-digital combos for optimization. Local branches in cities like Toronto or Vancouver stock popular currencies year-round, supporting seamless international dealings

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