Canadian currency exchange: How to get the best rates

Every year thousands of Canadians travel to other countries for work or to spend vacations. However, not many of them are aware of how to secure the best rates when it comes to currency exchange. Converting money can be quite expensive if a person doesn’t carry out thorough research or look for the right options, especially if he or she needs to convert a lot of money.

To make it easier for Canadians to decide, here are some of the ways to get the best rates at a very little cost.

Use Foreign ATMs
This is one of the most secure and cheap option for travelers who frequently fly to other countries. When executing a transaction using ATM in another country, you only have to pay a conversion fee of 1 to 2 percent on the spot rate. This is nothing as compared to the fee charged in other options.

It is possible that your bank might charge an additional two to five dollars for using the card internationally, but you can get it waived in many cases. If, for instance, your bank doesn’t waive the fee, try to max out the daily limit when using ATM internationally to avoid excess cost.

You can find the affiliated ATMS by looking at the back of your card. There are Cirrus or PLUS symbol at the back of MasterCard and VISA card respectively that help you find the ATM. In fact, you can also use ATM locator services of the MasterCard and VISA even before you start traveling.

Credit Card – The Best Tool for Travelers
This is yet another great tool that helps you do a lot of shopping if you want to travel light. If you have a credit card in your pocket, there is no need to keep a lot of cash with you. Credit card charges are a bit higher compared to ATM. Every time you use the card to buy anything, it charges a transaction fee of 2.5 to 3 percent on the current spot rate. However, the good news is that you won’t have to pay any other fee with that.

If you are a frequent traveler and need a lot of money whenever travelling, it is good to sign up for a credit card. You can also avoid the transaction fees by choosing a card that doesn’t charge anything on foreign transactions. This is why do your research as it will help you find the best product.

Foreign Exchange Office – A Good Alternative
Another way to get the best rates is through foreign exchange offices. You can easily find them on the airports and in many locations in the city. Although, it is relatively a expensive option, you can still get money at reasonable rates. in fact, there are a number of online platforms that are offering currency exchange services to its customers. They don’t even have to walk in to their office to get the money exchange.

For example, there is a Toronto currency exchange that offers outstanding rates that are lower than what Canadian banks are offering. It allows you to get everything done at the comfort of your home. All you have to do is create a free account, book the rate, send the funds, and receive the payment. They are very transparent in their services. Every time you book a rate, they send you a written confirmation of the agreed-upon rate. Moreover, the converted fund is delivered to the destination either on the same day or during the next business day.

Banks – A Secure Option
This is yet another option that enables people to convert their Canadian dollars into foreign currency. Although it comes with convenience of converting the cash, yet, the cost can quite high compared to other exchange options. There are some banks where you can order the currency online and it will be delivered to you on the same day or next working day. But it is very important to do your homework before selecting the bank for that matter.

There are a number of banks that charge a very high premium to their customers; it can be as high as 10 percent of the spread. Therefore, choose your options carefully and take smart decisions to maintain a good financial health.