Exchanging Canadian dollars to Euros for the first time can be a daunting task. How do you know when the best time to convert your funds is? How do you know the best place in which to convert those funds? In this piece we will look to address the major considerations a first-time exchanger might have.
The short answer is that there is no best time to convert Canadian dollars to Euros. The global foreign exchange markets are incredibly efficient and they operate around the clock. If there were a best time to exchange money, everyone would look to exchange at that time.
The long answer is that exchange rates collectively become very slightly more expensive on the weekends. Less business conducted on weekends, and resultantly the foreign exchange markets are less liquid (it is more difficult to find buyers and sellers). If possible, avoid exchanging on the weekend, but remember the difference is quite small.
If it’s your first time converting Canadian dollars to Euros, you will have a lot of options available to you. Consider how much money you are looking to exchange before you begin to search for a suitable location to conduct your exchange.
If you are exchanging a large amount of funds, then you will want to consider differences in exchange rates very heavily. A 1% difference in exchange rates on larger sums leads to cost savings of hundreds if not thousands of dollars. When exchanging a large amount of funds, you might consider using your bank. This is a very convenient option, as you have already developed a relationship with them and are familiar with their offerings. For large scale transactions remember that banks charge high mark-ups on exchange services, and consequently do not offer the best rates.
Consider using an independent foreign exchange service provider, such as Knightsbridge Foreign Exchange, when conducting large Euro purchases. You can save between 1-2% on your exchange transaction.
If you’re looking to make a smaller currency exchange transaction for the first time, you also have lots of options. Remember that location matters, and that sometimes the most convenient locations are the most costly. Hotels, airports, and malls tend to charge very expensive mark-ups and/or service fees for exchanging your funds. This is because they have very high overhead costs associated with paying expensive rent, and the high inventory cost of holding a breadth of currencies.
A better option for converting small amounts of currency is to use your local bank. Your local bank will be sure to have Euros on hand, and the exchange rates are better than you will find at the airport or your hotel.
In summary, there is no best time to convert your Canadian dollars into Euros. The best location to exchange your funds depends largely on what’s convenient for you, and the amount of money you are looking to exchange.
Our Offices
Main office (Appointment only)
First Canadian Place
100 King Street West
Suite 5700 Toronto, ON,
M5X 1C7
(416) 479-0834
Toll-Free: 1-877-355-5239
Fax: 1-877-355-5239
All rights reserved. Knightsbridge Foreign Exchange
Currency Exchange Canada.
