Do Banks Exchange Currency And How Much Do They Charge
Do banks exchange currency? Yes. Banks are among the most prominent financial institutions that provide currency exchange services in Canada. Whether you want to convert money for personal use or business operations, you can get help from banks.
There’s no doubt that banks are reputable financial institutions that exchange foreign currencies into Canadian dollars and transfer international money using swift codes. But before you exchange your money in a bank, it’s vital to consider the conversion fees. Banks are known to offer high exchange rates.
This guide looks at the banks that offer currency exchange services in Canada and their exchange rates. Later on, you’ll learn the best alternative to banks when it comes to currency exchange. Keep reading to get more insights into the topic.
Banks that Offer Currency Exchange Services in Canada
If you plan to exchange money in a Canadian bank, you have many options to consider. Many Canadian banks offer currency exchange services, and each option has branches throughout the country. Notably, these banks have different foreign exchange rates.
Here are some of the banks that exchange currencies in Canada.
Royal Bank of Canada (RBC)
The Royal Bank of Canada has many branches in various locations. So, you might want to consider it for currency exchange services. You may also need to visit the bank when it’s the only option available around. However, you should check the exchange rates.
The bank manager or bank tellers will exchange your cash and give you the receipt that indicates the exchange rate they used. If you want specific bills or coins during the conversion, you can request the bank to offer you the currency.
Some foreign currencies are low in demand, so getting specific coins or bills can be tricky. But when it comes to the loonie, you can quickly get the coins or bills you need at any time. The RBC offers a currency converter to help you know what you’ll receive.
The Bank of Montreal (BMO)
Another bank that offers currency exchange services in Canada is the Bank of Montreal. It has many branches in the country to help you exchange your currency. Notably, you can transact in the bank whether you have an account with the bank or not.
However, customers with an account at the Bank of Montreal will enjoy faster and more convenient services. To exchange your currency, give a teller the money and ask them to offer you a particular number of coins or bills you need.
Since currency exchange rates are dynamic, confirm the bank’s exchange rates before transacting. Consider doing that just before you visit the bank. If you realize that BMO is expensive, look for an alternative bank in a different location.
Canadian Imperial Bank of Commerce (CIBC)
Like other Canadian banks, CIBC also has several branches throughout Canada that offer currency exchange services. If you exchange your currency in a brick-and-mortar branch, it might take more time, especially if you are not an account holder.
If you have an account with the CIBC bank, they will quickly start the exchange process after verifying your account information. However, you may still end up paying higher currency exchange fees even if you have an account with the bank.
One good thing about CIBC is that you can also order your currency of choice online. You’ll have to sign on to CIBC’s online banking system to use the services. If you invite a friend to order foreign currency online from CIBC, both of you will get a $25 credit.
Scotiabank (Bank of Nova Scotia)
As one of the most popular banks in Canada, Scotiabank also offers currency exchange services in all its branches throughout the country. The bank posts its exchange rates online, making it easy to compare its rates with other banks.
If you need to convert foreign coins to Canadian currency, you can consider visiting Scotiabank. They will even offer the specific bills you need, especially if you contact the bank ahead of time. Set an appointment for the exchange to avoid inconveniences.
Scotiabank offers different exchange rates for cash and non-cash transactions. Cash exchanges involve real money, like banknotes, while non-cash electronic funds, like wire payments. The exchange rate for cash is usually higher than that of non-cash.
How Much Do Banks Charge to Exchange Currency
Canada is home to the most concentrated banking markets worldwide. Since there is no competition for foreign exchange services between banks, they charge high fees. You’ll not likely get better exchange rates from your bank since each bank has its rates.
Here are the currency exchange fees for some of the prominent banks in Canada.
|Bank of Montreal (BMO)
|Royal Bank of Canada (RBC)
|0.1% – 0.7%
Why Banks aren’t the Best Place to Exchange Your Currency
Banks don’t offer competitive exchange rates, making them one of the most expensive currency exchange options. Here are the reasons banks offer high exchange rates.
- Banks operate in high-cost structures that are expensive to build or rent
- Banks have many overhead costs, which they pass to clients during exchanges
- Banks have hidden fees as they will never give you a breakdown of their charges
- Banks have many workers, so they charge high rates to get money to pay them
Exchange Your Currency at Knightsbridge FX
As illustrated in the table, KnightsbridgeFX provides the best exchange rates for foreign currencies, making it the most reliable and affordable option. When you exchange your money at KnightsbridgeFX, you will save thousands of dollars in every transaction.
Knightsbridge Foreign Exchange calls all banks every morning to ensure their exchange rates are better than those of banks. Most importantly, the company guarantees the safety of customers’ funds. You can rest easy knowing that your money is safe.
Almost all banks in Canada offer currency exchange services. But since banks charge the highest foreign exchange fees, they are not the best place to exchange your money. Consider changing your currency at a reliable company like KnightsbridgeFX. You’ll enjoy the best exchange rates and even save thousands of dollars.