What is the cheapest way to exchange currency in Canada?

For large amounts ($5,000+): Norbert's Gambit through an online brokerage (0.1%–0.2% total cost). For sending money abroad ($500–$5,000): Wise or Remitly (0.4%–0.7% fee vs. mid-market). For spending in foreign currency: a no-foreign-transaction-fee credit card (within 0.5–1% of mid-market rate). The worst options are bank branch currency exchange (2.5–3.5% spread) and airport kiosks (5–8% spread). Never exchange currency at an airport kiosk if you can avoid it.

Is Wise good for Canadians converting currency?

Yes. Wise (formerly TransferWise) offers near-mid-market exchange rates for Canadians with a transparent fee of approximately 0.35%–0.65% of the transfer amount. For CAD to USD, Wise is typically 3–5x cheaper than a bank branch. It is best for sending money to a foreign bank account. It is not designed for investment account transfers — use Norbert's Gambit for those.

Should I use my credit card or buy foreign currency before travelling?

Using a no-foreign-transaction-fee credit card abroad is almost always better than pre-buying cash at a bank or airport. The card gives you close to the network mid-market rate (within 0.5–1%); a bank or airport kiosk gives you 2–8% worse than mid-market. Bring a small amount of local cash for tips and small vendors who don't accept cards, but put all significant spending on a no-FX credit card.

What is Norbert's Gambit?

Norbert's Gambit is a method of converting CAD to USD (or vice versa) at near-zero cost using a Canadian brokerage account. You buy shares of an interlisted ETF (like DLR, priced in CAD) and then have your brokerage "journal" those shares to the USD-denominated version (DLR.U), then sell. The total cost is 2 trading commissions (~$10–$20) + the ETF bid-ask spread (~0.01%). On $10,000, this costs about $15 vs. $250–$350 at a bank branch.

Best Way to Exchange Currency in Canada (2026): Cheapest Methods Compared

Currency Exchange in Canada: What You’re Really Paying

Every time you exchange currency, someone takes a cut. The question is how much — and whether you can do better.

The hidden cost of currency exchange is the spread — the difference between the mid-market rate (what banks use to trade between each other) and what they charge you. A 2.5% spread on $10,000 is $250 that disappears silently.

The mid-market rate is the “real” rate. Websites like XE.com, Google, and the Bank of Canada show the mid-market rate. Everything a bank or exchange bureau quotes will be worse than this.

Methods Compared: Cost on $5,000 CAD to USD

At a mid-market rate of 0.73, $5,000 CAD = $3,650 USD at zero cost.

Method	Effective Rate	USD Received	Cost
Norbert’s Gambit	0.7285	$3,643	~$7 in commissions
Wise	0.7270	$3,635	~$15 fee
IBKR currency conversion	0.7295	$3,648	~$2 (0.002% min $2)
No-FX credit card (spending only)	0.7265	n/a	~0.5% of spend
Questrade FX	0.7225	$3,613	~$37 spread
Bank online transfer	0.7080	$3,540	~$110 spread
Bank branch	0.7010	$3,505	~$145 spread
Airport kiosk	0.6800	$3,400	~$250

Method 1: Norbert’s Gambit (Best for Investment Accounts)

Cost: ~0.1%–0.2% of amount converted
Best for: Converting $5,000+ for investment purposes (e.g., buying US stocks in your RRSP)
Account required: Canadian brokerage with both CAD and USD sides (Questrade, IBKR, National Bank Direct Brokerage)

How it works

Buy DLR (Horizons US Dollar Currency ETF) in the CAD side of your account — it tracks USD but is quoted in CAD
Wait for settlement (typically 1 business day)
Call your broker (or submit online request) to “journal” shares from DLR (CAD) to DLR.U (USD)
Wait for journalling to complete (typically same or next business day)
Sell DLR.U — you now have USD in your account

Total cost on $10,000 CAD:

2 trades × $5 commission = $10
DLR bid-ask spread: ~$2–$3
Total: ~$12–$13 vs. $250–$350 at a bank branch

Limitations: Requires a brokerage account; takes 2–4 business days total; minimum sensible amount is ~$2,000 (below that, the commissions eat the savings).

Method 2: Wise (Best for International Transfers)

Cost: 0.35%–0.65% of transfer amount
Best for: Sending CAD to a US (or other foreign) bank account; receiving foreign currency
Website: wise.com

Wise charges a small flat fee and converts at the mid-market rate. For a $2,000 CAD to USD transfer:

Wise fee: ~$10–$13
USD received: ~$1,445 (vs. ~$1,420 at a bank — saving ~$25)

Wise also offers a multi-currency account (CAD, USD, GBP, EUR, AUD and more) that’s useful for frequent travellers or people receiving payments in multiple currencies.

Limitations: Not for investment account funding — Wise deposits to a bank account, not a brokerage.

Method 3: No-Foreign-Transaction-Fee Credit Card (Best for Travel Spending)

Cost: 0%–0.5% above mid-market (Visa/Mastercard network rate)
Best for: Spending while travelling internationally

Canadian cards with no foreign transaction fee (no 2.5% surcharge):

Card	Annual Fee	Rewards
Scotiabank Passport Visa Infinite	$150	2x Scotia Rewards on groceries, dining, entertainment, transit
Rogers World Elite Mastercard	$0	3% cashback on foreign currency purchases
Home Trust Preferred Visa	$0	1% cashback, no FX fee
CIBC Smart for Students Visa	$0	No FX fee, student-friendly
Brim World Elite Mastercard	$199	2x Brim Points; extensive travel insurance

Do not use a standard Canadian credit card abroad — the 2.5% foreign transaction fee on every purchase adds up quickly. On $3,000 of travel spending, that’s $75 in hidden fees.

Method 4: Online Broker Currency Conversion

Most Canadian brokerages allow direct CAD↔USD conversion within your account, but at varying spreads:

Broker	Spread (approximate)	Notes
Interactive Brokers	0.002% ($2 minimum)	Best rate of any major broker
National Bank Direct Brokerage	0.3–0.5%	Competitive; easy journalling for Norbert’s Gambit
Questrade	~1.5%	Worse than IBKR but available directly
RBC Direct Investing	~2%	Similar to bank branch
TD Direct Investing	~2%	Similar to bank branch

IBKR is the clear winner for pure currency conversion if you already have an account there.

Method 5: Bank Branch (Convenient but Expensive)

Cost: 2.5%–3.5% spread
Best for: Small amounts of cash for travel; emergencies

All major Canadian banks offer walk-in currency exchange. The convenience comes at a significant cost:

Common currencies (USD, EUR, GBP): 2.5%–3% spread
Less common currencies: 3%–5% spread
Some branches charge an additional service fee for small amounts

For $1,000 CAD to USD at a bank branch:

Mid-market: $730
Bank rate (2.5% worse): $712
Hidden cost: $18

For $10,000+, that $180+ difference is significant.

Method 6: Currency Exchange Bureaus

Cost: 2%–4% spread (varies widely)
Best for: Nowhere near as good as Wise or Norbert’s Gambit

Private currency exchange bureaus (Calforex, Currency Exchange International, etc.) are sometimes slightly better than bank branches for common currencies, but not competitive with digital alternatives. They can be useful for exchanging physical cash in obscure currencies that Wise doesn’t support.

Method 7: Airport and Hotel Kiosks (Avoid)

Cost: 5%–8% spread
Best for: Nothing. Use only as a genuine last resort.

Airport kiosks and hotel front desks offer the worst exchange rates. They count on convenience and captive customers. Never exchange more than $50–$100 at an airport kiosk if you can help it.

Which Method to Use: Decision Guide

Situation	Best Method
Converting $10,000+ CAD to USD for RRSP/brokerage	Norbert’s Gambit
Sending money to a US bank account	Wise
Spending in USD/EUR/GBP while travelling	No-FX credit card
Small cash purchase abroad (<$200)	Bank branch or ATM withdrawal
Converting USD to CAD (income from US clients)	Wise or Norbert’s Gambit
Small-business invoicing in USD	Wise multi-currency account
Airport emergency	Airport ATM (better than kiosk)