In Canada, many people have US dollar accounts. This is natural given that we live next to the largest economy in the world. But it also raises the question of how one goes about converting funds between US and Canadian Dollar accounts. The aim should be to get the best exchange rate possible. Otherwise, you are literally wasting money just by converting from one currency to another. Your own bank will often allow you to convert funds but it is almost never the best option if your goal is to get the best exchange rate.
The best option for converting funds from your USD account
The best way to convert funds from your USD account is typically to find a reputable foreign exchange company which has better rates than your bank. There are three things to look for when choosing a foreign currency exchange company:
1. Better Rates
It’s important to first determine whether their rates are better than your bank’s rates. You should ask them to give you a quote and compare it to your bank rate at the same time. If their exchange rates are not consistently better than your banks there is no sense in using them.
A good question to ask is whether the company is reputable. Look for things like years in service, physical locations, and general reputation in the community. This information will give you clues as to the quality of their reputation.
3. Price Transparency
Price transparency is an important indicator in terms of whether or not you should involve yourself with a particular foreign currency exchange company. Do they allow you to book rates online? Do they show you the exact pricing on their home page? These days, unless a company allows you to book rates instantaneously and online whenever it is to your advantage, they are probably not particularly good.
4. Fees or Deposits
Lastly, take note of whether or not the company asks you for money. Do they ask for a deposit? Firms that ask for a deposit are generally not a good option. They are usually better for speculators.
At Interchange Financial, we have designed a service dedicated exclusively for those who convert funds within their own bank accounts in Canada. ICS Service allows you to convert funds in your bank account at your convenience through a phone call or online. There are no fees and our exchange rates are guaranteed to be better than your banks. We have complete transparency on our pricing and you can always get our live quotes to compare to your bank. Interchange Financial has been a leading foreign exchange company in Canada for the last 20 years and we have saved over $100 million in foreign exchange transactions over that period.