Personal Finance

Best place for currency exchange?

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  • Mar 9th, 2011 6:03 pm
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[OP]
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Dec 3, 2003
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Best place for currency exchange?

Hi guys,

Do any of you know the best place to exchange currency?

I need to purchase $25,000 USD at the end of the week... the US/CAN rate has worsened considerably the last few weeks. I've looked at options like local banks and also XE.com ... but does anyone know any place better?

Thanks
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Dec 23, 2005
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Calgary
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May 1, 2003
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I used xe.com, you mentioned it.

but if you need it done fast you are screwed unless you already have an account set up and have done a trade. The first one can take a while.
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Jul 31, 2007
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Earth
tasamy wrote:
Mar 31st, 2008 11:03 am
http://www.customhouse.com/
Custom House and XE work together. I asked Custom House and they told me that I would not get a better rate using their service directly than going through XE. So I keep using XE.
I'm not overweight, I'm undertall.
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gravem wrote:
Mar 31st, 2008 10:23 am
I need to purchase $25,000 USD at the end of the week... the US/CAN rate has worsened considerably the last few weeks. I've looked at options like local banks and also XE.com ... but does anyone know any place better?
I have an idea, but I expect it to take longer than a week. For that matter, setting up an account with XE will also take longer than a week.

Because $25K is a lot of money, you could use stock broker to buy a stock in Toronto and sell it in New York. As long as you pick a liquid stock that trades in both exchanges, you should get an exchange rate very close to spot, minus brokerage commissions. Because commissions are fixed, the more money you trade the better your effective rate. At $25K you should get a very sweet deal.

This idea is known in some circles as Nortbert's Gambit.

An example of a stock that trades in both exchanges is Royal Bank of Canada (RY). I don't know how liquid it is, but big companies tend to be liquid. You want a liquid stock (high volume) because the more liquid it is, the closer the two prices are to spot, and the smaller the bid/ask spread.
I'm not overweight, I'm undertall.
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Dec 23, 2005
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CustomHouse has branches everywhere and you can talk by phone, go to their office. I do not know about xe.com!
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Jul 31, 2007
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tasamy wrote:
Apr 2nd, 2008 12:34 pm
CustomHouse has branches everywhere and you can talk by phone, go to their office. I do not know about xe.com!
I've never seen a CustomHouse branch in Toronto, but I know that they started off making kiosks in BC. So maybe they have branches everywhere in BC.
I'm not overweight, I'm undertall.
[OP]
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Dec 3, 2003
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I did sign up for XE a few weeks ago. I tried buy just $10US to see how long it would take. This was on Saturday... I just saw the money withdrawn from my CAN$ account today... so it should be in my US$ account tomorrow. So, it looks like it takes around 6-7 days.

Sounds like I might be using TD afterall... once I get the loan I won't be able to wait a week for the exchange to happen.
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