American Money

[guest839]

Where is the cheapest place to buy american money - bank?

[mlc2000]

Yes, if u have an acct there, u can get a little lower rate.
For larger purchases, a credit card is best, since you are exchanging only enough $ for the purchase.

[camy47]

If this is for vacation and you are a CAA member, get travellers cheques. CAA usually has a pretty good exchange rate and you can get enough so you don't have to worry about carrying lots of cash around with you. They are free for CAA members.

[lilyg]

I've been purchasing American money at a currency exchange office (called Kingmark).....the one I go to has way lower rates than the banks. Check the phone book for currency exchange offices in your area.

[Eyeman]

Yes, if u have an acct there, u can get a little lower rate.
For larger purchases, a credit card is best, since you are exchanging only enough $ for the purchase.

Like everyother post in this thread, this is bad bad advice. If you use your credit card you are charged 2.5-3%. The credit card company charges you .5-1% and the card issuer charges 2-2.5%

The best way by far to get US money rate is to get if from an ATM machine.

[700mb80min]

The best way by far to get US money rate is to get if from an ATM machine.

....yes but almost all ATM machines i found when travelling charged a fee . i simply went to the bank before i left for most of my cash.

[cko64]

....yes but almost all ATM machines i found when travelling charged a fee . i simply went to the bank before i left for most of my cash.

HSBC charges only $2 per transaction outside of Canada and it is calculated at current exchange rate (most bank charge $3, but Royal bank will increase to $5 on May 2006). Where as when you buy foreign cash from a bank, the bank tacks on 2-3%. So for $500 CAD, you lost $10-15 off the bat.

ATM is always the best way to withdraw cash oversea, then charge with credit card (2.5% spread), then buying cash/traveller cheques from your bank (up to 3% spread). These issues must be discussed to dead on the internet and yet it seems there are still lots of people don't know these basis when travelling.

[any007]

the cheapest way usually is if you have a brokerage account.
move money from your CAD trading account into your USD trading account and they withdraw it.

Or. if you own a canadian stock that trades on the both the TSE and the NYSE or NASDAQ, just sell it on the US exchange and withdraw the money.
That way, you don't even pay currency exchange charges.

[700mb80min]

HSBC charges only $2 per transaction outside of Canada and it is calculated at current exchange rate (most bank charge $3, but Royal bank will increase to $5 on May 2006). Where as when you buy foreign cash from a bank, the bank tacks on 2-3%. So for $500 CAD, you lost $10-15 off the bat.

ATM is always the best way to withdraw cash oversea, then charge with credit card (2.5% spread), then buying cash/traveller cheques from your bank (up to 3% spread). These issues must be discussed to dead on the internet and yet it seems there are still lots of people don't know these basis when travelling.

....great post thx

[wju2004]

try setting up an xe.com account. Seems to be a bit cheaper than buying from the bank

[Eyeman]

the cheapest way usually is if you have a brokerage account.
move money from your CAD trading account into your USD trading account and they withdraw it.

Or. if you own a canadian stock that trades on the both the TSE and the NYSE or NASDAQ, just sell it on the US exchange and withdraw the money.
That way, you don't even pay currency exchange charges.

This is true but very inconvenient. If you go on a long trip, you then end up carrying around a lot of cash. The ATM is the best bet.

[CoolEddie]

In my travel experience, ATM and credit card is the best way to go. Travellers' Cheques are probably the worst. Here is a break down of my experiences in the 46 countries I have visited.

ATM: You are usually charged a fee between $3-$5 per transaction depending on your bank and a decent exchange rate. So it's good to take out quite a bit at a time say $200-300. I always carry some in my wallet and some in my suitcase. Another travel tip is bring two debit/credit cards (don't keep in same place) just in case you lose one.

Foreign Exchange: Bad exchange rate and they somtimes also charge a commission. Less likely to charge a commission than banks so good to change small sums especially non-major currencies.

Bank: Decent exchange rate but usually charged pretty higher fees.

Credit Card: Good for making purchases but not for making cash withdrawls. If you do plan to use credit card, it's also a good idea to have a credit on the account if you plan on making withdrawls so that you are not charged interest. Note that in some foreign countries and especially in hotels, they will have an option where they bill you at your home currency. DO NOT take this option as the exchange rate in really bad. Ask them just to bill you in their currency.

Travellers' Cheques: They may be better in the USA and Canada, but when I was travelling in Europe and the Middle East it was a really bad option. Most places did not accept them including some banks. Some would only take VISA Travellers' Cheques some only American Express, etc. Plus they charged a 5% commission on cashing them plus poor exchange rates. So if you get travellers' cheques you end up having to pay the bank's exchange rate, pay the fee for travellers' cheques, then pay the bank in the foreign country to give the travellers' cheques to you in local currency with a bad exchange rate. Once again, this is what I experienced in Europe and is probably not as bad in USA and Canada.

Cash: Always have cash. In some countries it is hard to find an ATM machine but if you are going to a first world nation you should have nothing to worry about. If you are going to more remote countries, it is important to also carry at least one other major currency like US$, GBP, and the Euro with the US$ the most universal. It definitely depends where you are going. In Europe and the Middle East I found Swiss Francs easily exchangable too!

I think that covers it all.

[CoolEddie]

A word of caution I forgot to mention. Make sure your debit card can be used outside the country. Look for the Cirrus logo or the Plus logo on the back of your debit card. PC Financial's debit cards do not work outside Canada.

[randomdef]

In my travel experience, ATM and credit card is the best way to go. Travellers' Cheques are probably the worst. Here is a break down of my experiences in the 46 countries I have visited.

ATM: You are usually charged a fee between $3-$5 per transaction depending on your bank and a decent exchange rate. So it's good to take out quite a bit at a time say $200-300. I always carry some in my wallet and some in my suitcase. Another travel tip is bring two debit/credit cards (don't keep in same place) just in case you lose one.

Foreign Exchange: Bad exchange rate and they somtimes also charge a commission. Less likely to charge a commission than banks so good to change small sums especially non-major currencies.

Bank: Decent exchange rate but usually charged pretty higher fees.

Credit Card: Good for making purchases but not for making cash withdrawls. If you do plan to use credit card, it's also a good idea to have a credit on the account if you plan on making withdrawls so that you are not charged interest. Note that in some foreign countries and especially in hotels, they will have an option where they bill you at your home currency. DO NOT take this option as the exchange rate in really bad. Ask them just to bill you in their currency.

Travellers' Cheques: They may be better in the USA and Canada, but when I was travelling in Europe and the Middle East it was a really bad option. Most places did not accept them including some banks. Some would only take VISA Travellers' Cheques some only American Express, etc. Plus they charged a 5% commission on cashing them plus poor exchange rates. So if you get travellers' cheques you end up having to pay the bank's exchange rate, pay the fee for travellers' cheques, then pay the bank in the foreign country to give the travellers' cheques to you in local currency with a bad exchange rate. Once again, this is what I experienced in Europe and is probably not as bad in USA and Canada.

Cash: Always have cash. In some countries it is hard to find an ATM machine but if you are going to a first world nation you should have nothing to worry about. If you are going to more remote countries, it is important to also carry at least one other major currency like US$, GBP, and the Euro with the US$ the most universal. It definitely depends where you are going. In Europe and the Middle East I found Swiss Francs easily exchangable too!

I think that covers it all.

very very good post. i second everything said.

[gmark2000]

To add to the ATM info, when you withdraw from an ATM the banks use the best interbank exchange rate (the one you see in the financial pages), because the the Canadian bank owes whatever you took out in U.S. and nothing more.