Personal Finance Tips

A closer look at buying US Dollars in Canada

Piyush Singh

17.09.24

Read time 3 minutes

Whether you’re shopping from a US vendor or planning a big trip to America, buying USD beforehand will save you the stress of dealing with marked-up exchange rates and hidden costs. The best part? You’ve got choices. Banks or money services can help you make the swap, but we’ll break down the best way to buy USD in Canada. In addition, we’ll talk about Wise for multi-currency accounts and transparent rates.

We'll be looking at:
Best places to buy US dollars in Canada How much does it cost to buy USD from a money service provider? Get more USD for your money with Wise How much does it cost to get US dollars with Wise?

Best places to buy US dollars in Canada

Money service businesses:

Companies like these usually offer an online platform to seamlessly transfer funds at superior rates with lower fees compared to traditional methods. They make it much easier to send and receive money locally and internationally. They often make it easier for you to access the fees and exchange rates too, so you know how much it would cost.

Pros	Cons
Lower fees with providers such as Wise	Unless tied to a bank, they do not accept cash/cheque deposits
You can often hold multiple currencies
Your converted money is often available right away

Banks

Sometimes, going the traditional route is the preferred choice. There’s the comfort of bank security measures and the familiarity of an established institution. The problem is fees are high, markups are frustrating, and it can take a few days for you to even receive your funds.

Pros	Cons
You can receive the US dollars in cash if needed	You might not have clarity on the costs and exchange rates until the transaction has been made.
	It might take over 1 business day to get your US dollars for certain banks¹

Currency exchange providers

Currency exchange businesses focus solely on exchanging currencies, unlike traditional banks. They often operate both online and in-person and can offer competitive fee structures and exchange rates when you want to buy US dollars in Canada.

Pros	Cons
You can receive your US dollars in cash	Exchange rates are set by the providers themselves and can contain commissions from which they draw revenue from
	Some providers, such as ICE, offer fees and rates that vary with the collection points and the day you collect your money in USD (via the click-and-collect method)
	You may need a passport to withdraw funds in USD if you aren’t a Canadian resident

How much does it cost to buy USD from a money service provider?

When you buy USD from a money service provider, the fee structure typically includes a flat fee or percentage of the transaction amount, along with the currency conversion fee itself. You’ll usually be able to see what you’re paying upfront, with no hidden costs added later on.

If you want to get 1000 US dollars, here’s what you pay in Canadian Dollars:

Service provider	You pay per US dollar	Currency conversion costs	You pay for 1000 USD (in CAD)
Tangerine	1.367 CAD⁵	2.50%⁶	1401.17 CAD
Skrill	1.348 CAD³	3.99%⁴	1401.78 CAD
Wise	1.347 CAD	0.46%	1352.84 CAD

Exchange rate as seen on August 30 at 5:33 am PDT

You might consider banks for buying USD in cash or online. However, they aren’t usually as transparent when it comes to their exchange rates fee structures. You might also not find the exact costs for purchasing US dollars publicly available before signing in.

While most banks and providers use their own exchange rates, they also add a markup to the mid-market exchange rate, even if they don’t charge you certain fees. When you spend Canadian dollars on buying US dollars, it can add up quickly.

Get more USD for your money with Wise

When you choose Wise, you get the mid-market exchange rate – the exchange rate you’ll often see on Google. You get a fee breakdown upfront, so you know exactly what you will be paying before you convert your money to US dollars, or if you send it to one of the 160+ countries where Wise can be used.

How much does it cost to get US dollars with Wise?

Wise makes it easy to see what you’re getting, and you can convert currencies right in your account in seconds. You could check out Wise’s currency conversion calculator to see how much you’d pay in Canadian dollars.

Here’s how you convert your Canadian dollars to US dollars on your Wise account:

From your Home page, choose the balance you want to convert from. In this case, CAD.
Click Convert and enter the amount you would like to convert from and US Dollars as the currency you want. Make sure you have the amount available in your currency.
Review and confirm your conversion and receive your money in seconds!

You can now spend your US dollars like a local i! You can also use this money to make online purchases or card payments with your Wise card.

Final thoughts on buying USD in Canada

With the number of choices we have for currency conversion today, you have 3 choices; compare fees and exchange rates from banks, currency exchange providers or money service businesses. Wise makes that process easy, as the multi-currency account lets you transfer currencies within your account in no time.

Sources:

How To Order Foreign Currency Online | CIBC
Fair Fees Associated with the Tangerine
Skrill currency converter
Fees & Charges | Skrill
Tangerine Exchange Rates
Tangerine Fees
Sources verified on 17 September 2024

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.