Many immigrants come with their savings in US dollars. Since we live in Canada, it is more convenient to pay for goods and services in CAD. What is the best place to buy CAD? (By the way, when visiting your home country you will need US$.) I can share my experience and the experience of my clients with you.
Try to avoid exchanging currency in airports, banks and currency exchange offices that are open around the clock or after hours. You are risking losing up to 5% of your total amount because of the exchange rate differences. In times of Internet, it is better to exchange the currency online. The method that I have been using saves your time and money. In order to do the same, you will have to follow the link and register with the oldest bank called Western Union. It has acquired the second largest currency exchange company in the world a few years ago and has been exchanging currency under its own name ever since. When registering, you will have to provide the proof of your Canadian residence or residence in any of the 30 countries on the banks’ list together with the bank account number in any of the aforementioned countries. Upon the registration, and after the bank runs a check on you (it is possible that you will get a call from the bank), you will be able to register the accounts that you have in Canadian or other currencies with the bank. Next, you will have to log in using your user name and password and do the exchange. The exchange rate is based on the market rate with a little extra charge on top (it fluctuates every minute, so before you do the exchange, check the current exchange rate). It is much more favorable than using the services of any of the Canadian banks and the majority of currency exchange offices. You can do the currency exchange if you follow this link.
It is easy to exchange ten major currencies and around thirty other currencies in Canada. Unfortunately, it is not possible to exchange Russian rubles, Ukrainian hryvnia, Kazakhstan tenge and other soft national currencies. In order to make such an exchange possible in future the ARM Marketing Services Inc. signed up an agreement with Western Union and every person who follows this link and registers will contribute to future possibility of such an exchange. The registration is open for all individuals and small business corporations. By the way, besides the currency exchange, it has been planned to offer a free of charge money transfer to and from our home countries. Such a service already exists, and I can personally attest to this information. I have been using the Internet currency exchange option since May 2010. It saves my time and money. If you need help, please call 1-604-875-8878. The exchange services are available for all Canadian cities and other countries as well (the list is provided below). The The actual exchange is not done instantly; it takes a few days, but the exchange rate is secured immediately.
If you have to do an urgent currency exchange in Greater Vancouver, you can find many currency exchange offices, where the exchange rate is better than in the banks. Furthermore, the exchange rate differs from place to place. How do these offices function? Each one of them is buying and selling currency obtained from a bigger intermediary, or acts as an independent participant of the currency exchange market. The actual currency rate changes every minute. That is why they are trying to maintain a particular balance against the rate differences. You can play with the numbers using the currency exchange calculator once you register.
It is important to know where it is not recommended to do the currency exchange: in airports, hotels, 24/7 or after-hours currency exchange offices and commercial banks. A good indicator of favorability in regards with buying the currency is the margin – the difference between the buying and selling rate.
How should an average client act in order to minimize losses during currency exchange? First of all, open an account in a Canadian bank. Currency exchange places prefer to deal with the money transfer. Dealing with money transfer, they don’t have to count cash manually, keep it on premises or pay fees to the bank for depositing the cash. That is why if you bring a Certified Cheque or a Money Draft to currency exchange office, the exchange rate against it would be more favorable than that of the cash exchange rate. Usually the banks charge $5-$7 for issuing such a cheque.
This concerns the Canadian banks. Cheques issued by American or other banks may not be accepted in all the currency exchange places and when bringing such a cheque to a bank, the client might need several weeks in order to get the clearance, or the confirmation of funds from the issuing financial institution, and their actual transfer to the bank-acceptor.
For your convenience, the certified cheque can be issued to your personal name. In a way, you are paying to yourself. Hence you can choose any currency exchange office and indorse the cheque by signing at the back of it. If you always exchange currency in the same place, you can order the cheque at the name of the company receiving the currency from you.
Thus, you have received the certified cheque. Which currency exchange office should you use now? Opening the Yellow Pages Currency Exchange section you will find a whole list of such places in our city. But don’t rush to the nearest one. A phone call can save you a certain amount of money. Make a call and compare the rates.
In Vancouver, I recommend to start with checking the places that have been checked by me or my clients during several years.
- Broadway & Granville: .. 604-739-3997,
- Burrard & Georgia: ……… 604-685-4921,
- 402 Hornby: …………….. 604-682-7921,
- Metrotown, 4500 Kingsway Currency Exchange : 604-438-9990.
During the exchange, follow the simple rule: in good currency exchange place the difference between buying and selling rate should be minimal.
Please note that when placing a phone call, you have to state the approximate amount of currency to be exchanged. Bigger sum yields better exchange rate. After you bargained and reached a particular exchange rate, secure it, say at what time you would show up, and give your name and the phone number. If you do so, the rate will be guaranteed, or you will be notified when the rate starts climbing up. If you change your mind, don’t forget to call and cancel the order.
In Vancouver, to exchange 3,000 CAD and more, you will need a picture ID.
It is preferable to have documents explaining the origin of money in case you brought cash with you.
If you need to exchange a large sum ($35,000 US and more), you can call me, and I can help you redirecting you to broker’s services.
I would be happy if anyone could add an insight sharing personal experience and providing the phone numbers of good currency exchange places in other Canadian cities.
Michael Arbetov, CFP, FMA
Financial Adviser
Links to the websites of companies providing currency exchange services in Canada:
- Globex.com – Exchange of large sums.
- Calforex – Currency exchange in British Columbia, Alberta, Ontario and Quebec
- Currency exchange for individuals and businesses in Canada, the US and other countries.
- Vancouver Bullion & Currency Exchange – Currency exchange in Vancouver
Other articles on the same subject:
- Michael Arbetov “US dollars in Canada”
- Michael Arbetov “The reasons behind Canadian dollar exchange rate’s decline”
- Michael Arbetov “Protecting Client’s Interests in Canadian Financial Industry”
- Michael Arbetov “Currency Exchange”
- Michael Arbetov “Money Transfer to Your Parents”
- Online Currency Exchange American Canadian Dollars Euro Pound Money Transfer-Russian version
Additional information for new immigrants:
- What is a credit history and how is it established?
- Digest for those who plan to…
- For those who are staying in Canada for up to 3 years
- Collection of useful links
- Medical insurance for new immigrants to Canada
The article was published on February 18, 2002 in Banks and Mortgages section and has been revised several times.
The list of the countries, residents of which can register in order to do currency exchange based on the market rate: Australia, Austria, Belgium, Bulgaria, Canada, Cyprus, Czech, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Ireland, Italy, Japan, Latvia, Lithuania, Luxemburg, Malta, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Singapore, Slovakia, Slovenia, South Africa and Spain.
If you have any question, please write to [email protected] , and we will be happy to assist you.