Personal Finance

Best online exchange rate ? ( USD TO CAD )

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  • Dec 30th, 2015 9:14 pm
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Newbie
Oct 6, 2015
36 posts
5 upvotes
Winnipeg, MB

Best online exchange rate ? ( USD TO CAD )

Hello, guys. As the title says, I am looking for an exchange USD to CAD since I receive my payment in US dollars. I've been using Paypal as an currency exchange but I realized their 2.5 fee is worse than any other exchange company. So I would love to hear what you guys think is the best website for exchange currency.

Any advice or comment is appreciated. :)
18 replies
Deal Addict
Jun 10, 2008
1206 posts
392 upvotes
Glenboro wrote: Hello, guys. As the title says, I am looking for an exchange USD to CAD since I receive my payment in US dollars. I've been using Paypal as an currency exchange but I realized their 2.5 fee is worse than any other exchange company. So I would love to hear what you guys think is the best website for exchange currency.

Any advice or comment is appreciated. :)
xe.com .... been a while since I used it so not sure if they are still competitive, but for sure better than paypal.
Newbie
Apr 30, 2013
85 posts
9 upvotes
I had been using XE but I've found their rates getting worse and worse over time. More recently, I've just been finding people to trade with directly, no fees for either party that way. It's a bit more hassle, but can be worthwhile for larger amounts.
Newbie
Oct 6, 2015
36 posts
5 upvotes
Winnipeg, MB
ObsidianTriangle wrote: I had been using XE but I've found their rates getting worse and worse over time. More recently, I've just been finding people to trade with directly, no fees for either party that way. It's a bit more hassle, but can be worthwhile for larger amounts.
I just compared xe.com rate and to paypal's, obviously xe rates was better. Also would you mind explaining trading directly? Are you suggesting person to person ( I might be completely wrong )
Deal Addict
Feb 25, 2007
1569 posts
1129 upvotes
Ottawa
Norbert's Gambit is excellent if you are willing to put in the effort to set it up and execute it. You need an investment account with both CAD and USD subaccounts, and to follow steps specific to your brokerage exactly. Then on the order of <0.1% spread plus about $20, takes approx 5 days to get your money. Will have some implications for when you do your taxes (small taxable gain or loss possible).

I have good experience with Knightsbridgefx, whose rates are comparable to xe.com. You have some forms to fill out the first time and you need to phone them to set up a trade, but then the spread is about 0.5% (depends a bit on the amount) and less fussy than Norbert's Gambit.

If you often and systematically need to juggle USD and CAD, *and* you have at least $100k in investable assets, worth exploring HSBC's Premier Service -- there are separate threads on it. The currency spread has become worse over time, but can easily set up accts in multiple jurisdictions and currencies.
Deal Addict
User avatar
Jan 16, 2007
1941 posts
2357 upvotes
New Brunswick
I personally use VBCE Online. Better rate than XE, and they essentially extend you credit to do the deposit of the CAD immediately. Happens overnight for me. If you can execute trades fairly cheaply than Norbert's Gambit would yield a bit better amount. I found though that even up until $10k or so VBCE was still better at an assumed $9.95/trade cost for Norbert's Gambit. They are very very close.
Sr. Member
Dec 26, 2011
909 posts
896 upvotes
When I looked into this recently with just under 10k USD to CAD the best rate was -

Norbit Gambit via RBC DI (even accounting for the $20 transaction fee with DLR/DLR.U. But I have an existing account).
KnightsbridgeFX would have been about $50 less CAD not factoring in the cost for the wire transfer but factoring in the transaction cost for Norbit Gambit.
VBCE was even lower than Knightsbridge. Forgot the exact amount, maybe another $50 or so?

But the best bet is probably just to phone in and ask before these trades.
Deal Addict
Jan 24, 2015
1021 posts
310 upvotes
Canadian in USA
This question cannot be answered unless you tell us how much you want to exchange. The answer is different under $5000, under $50000, and over that.
Newbie
Oct 6, 2015
36 posts
5 upvotes
Winnipeg, MB
rj2wells wrote: This question cannot be answered unless you tell us how much you want to exchange. The answer is different under $5000, under $50000, and over that.
Sorry about that, I have around 5K USD dollar, but for now I'm only going to exchange 1.5K USD as I have to pay rent, bills, and etc. Also, since I receive payment in USD, I will keep exchange more money on future.
Deal Addict
Jan 24, 2015
1021 posts
310 upvotes
Canadian in USA
Glenboro wrote: Sorry about that, I have around 5K USD dollar, but for now I'm only going to exchange 1.5K USD as I have to pay rent, bills, and etc. Also, since I receive payment in USD, I will keep exchange more money on future.

If you can set up a regularly recurring payment look at USForex. They waive their fee for recurring transfers. Otherwise at that amount XE might be your best bet.
Deal Addict
Oct 28, 2009
1314 posts
289 upvotes
rj2wells wrote: If you can set up a regularly recurring payment look at USForex. They waive their fee for recurring transfers. Otherwise at that amount XE might be your best bet.
That's quite misleading. No fee does not mean no spread. What's their rates vs spot?
Deal Addict
Jan 24, 2015
1021 posts
310 upvotes
Canadian in USA
bluenote wrote: That's quite misleading. No fee does not mean no spread. What's their rates vs spot?
They charge a flat $15 fee but have a very competitive spread. You would have to go check to see the current rate. Fir small transactions the fee makes them uncompetitive.

Compared to XE, which charges a 1.5% fee, they become technically cheaper at $1000, but they also have a 3 day hold, so maybe not worth it below $2500. Between about that and where Norbert's gambit becomes feasible, maybe $20k, they are pretty competitive. I used them for about a year to transfer my mortgage payment and plan to again when the CDN fund I have is drained in a few months.

If the hold isn't a problem they might be interesting to the OP since that fee is waived for recurring transfers.
Deal Addict
Oct 28, 2009
1314 posts
289 upvotes
rj2wells wrote: They charge a flat $15 fee but have a very competitive spread. You would have to go check to see the current rate. Fir small transactions the fee makes them uncompetitive.

Compared to XE, which charges a 1.5% fee, they become technically cheaper at $1000, but they also have a 3 day hold, so maybe not worth it below $2500. Between about that and where Norbert's gambit becomes feasible, maybe $20k, they are pretty competitive. I used them for about a year to transfer my mortgage payment and plan to again when the CDN fund I have is drained in a few months.

If the hold isn't a problem they might be interesting to the OP since that fee is waived for recurring transfers.
Norbert's is feasible down to pretty low amounts with Questrade. I pay only the ECN on buying, and then (Im guessing mind you) ~$9 on selling but I haven't looked, maybe it's more like $15.
Member
Jan 14, 2010
431 posts
642 upvotes
GTA
As we are on this topic, I would like to know as well. Whats the best way to convert about 50k USD and no problems with a 3 day hold.
Deal Addict
Oct 28, 2009
1314 posts
289 upvotes
bizstudent wrote: As we are on this topic, I would like to know as well. Whats the best way to convert about 50k USD and no problems with a 3 day hold.
Norbert's gambit.

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