Canada’s five largest banks — RBC, TD, Scotiabank, BMO, and CIBC — each offer currency exchange services, and each applies its own markup to the mid-market rate when you convert. The difference between banks is real, but the more important comparison is between any Big 5 bank and a dedicated currency exchange service. This guide gives you both: a side-by-side look at what the Big 5 charge, and how those rates stack up against your alternatives.
How Bank Exchange Rates Work in Canada
No Canadian bank offers you the mid-market rate — the actual interbank exchange rate you see on Google or financial data terminals. Every bank applies a markup to that rate, which is how they profit from currency conversion. That markup is invisible in the sense that it doesn’t appear as a line-item fee. It’s embedded directly into the rate you’re quoted.
On a typical CAD/USD conversion, Canadian banks apply a markup of 2.5–3.5% above the mid-market rate. On a $10,000 conversion, that’s $250–$350 in hidden cost — before any wire or transaction fee is added. The markup percentage is applied to both sides of the transaction, meaning you pay it whether you’re buying USD with CAD or selling USD for CAD.
RBC Exchange Rate: What You Pay
RBC applies a standard retail markup of approximately 2.5–3% on CAD/USD conversions for personal accounts. Their online banking rate for USD purchases is typically 1.5–2 cents per dollar worse than the mid-market rate on any given day. RBC’s Global Money Transfer service (for international transfers) applies a different rate than their in-branch cash exchange rate — generally slightly better, but still well above mid-market. Wire transfer fee: $13.50 online, $45 in-branch.
TD Exchange Rate: What You Pay
TD’s retail exchange rate sits in the same 2.5–3% markup range as RBC. TD has the highest personal banking market share in Canada, which means a large number of Canadians are defaulting to TD’s rates simply out of banking habit. TD’s “exchange rate” as displayed in online banking is their indicative rate — the actual rate applied at execution may differ slightly, particularly on larger amounts processed at branch level. Wire fee: $17.50 online.
Scotiabank Exchange Rate: What You Pay
Scotiabank’s retail markup on CAD/USD is consistent with the Big 5 average: 2.5–3.5%. Scotia’s international banking network (particularly its presence in Latin America and the Caribbean) gives it a slight edge on some emerging market currency pairs — but for CAD/USD specifically, their rate is not meaningfully better than peers. Scotiabank’s Global Money Transfer service for international wire transfers applies a markup similar to their standard retail rate. Wire fee: $20–$40 depending on account type.
BMO Exchange Rate: What You Pay
BMO’s exchange rate markup on CAD/USD retail conversions is 2.5–3%. BMO has historically been the preferred banking partner for cross-border transactions between Canada and the US given their US banking operations through BMO Harris, but their exchange rates for Canadian retail customers aren’t preferential. BMO Harris customers in the US and BMO customers in Canada sending to each other still face the standard markup on the conversion leg. Wire fee: $16 online.
CIBC Exchange Rate: What You Pay
CIBC’s retail exchange rate markup falls in line with the rest of the Big 5: 2.5–3.5% over mid-market on standard conversions. CIBC’s “Global Money Transfer” product for international transfers claims to be “fee-free” on the wire transfer itself — but the exchange rate applied embeds the same 2–3% markup that would otherwise be charged as a fee. The absence of a visible line-item fee doesn’t mean the cost disappears; it means the cost is hidden in the rate. Wire fee: $35 in-branch, lower online for select accounts.
Big 5 Bank Exchange Rate Comparison: CAD to USD
| Bank | Typical Rate Markup | Online Wire Fee | In-Branch Wire Fee | Notes |
|---|---|---|---|---|
| RBC | 2.5–3% | $13.50 | $45 | Rate varies by channel and account type |
| TD | 2.5–3% | $17.50 | $30 | Largest personal banking base in Canada |
| Scotiabank | 2.5–3.5% | $20 | $40 | Stronger on LatAm/Caribbean pairs |
| BMO | 2.5–3% | $16 | $25+ | US banking via BMO Harris, same markup applies |
| CIBC | 2.5–3.5% | $0 (embedded in rate) | $35 | “Fee-free” GMT still embeds a rate markup |
| CanAm Currency Exchange | 0.5–1% | None | None | FINTRAC-regulated, A+ BBB, 4.9 Google |
What the Rate Difference Costs at Different Transaction Sizes
| Amount (CAD) | Bank Rate Markup (3%) | CanAm Rate Markup (~0.75%) | Estimated Savings |
|---|---|---|---|
| $2,000 | $60 | $15 | ~$45 |
| $10,000 | $300 | $75 | ~$225 |
| $25,000 | $750 | $188 | ~$562 |
| $50,000 | $1,500 | $375 | ~$1,125 |
| $100,000 | $3,000 | $750 | ~$2,250 |
When Do Banks Make Sense for Currency Exchange?
There are legitimate use cases where using your bank for currency exchange is the right call. For small amounts — under $500 — the absolute dollar difference between a bank rate and a specialist rate is modest enough that convenience wins. For travel cash in low-liquidity currencies that a specialist doesn’t carry, banks remain the practical option. And for Canadians who hold US-dollar bank accounts and need to move cash internally without a cross-border transfer, some banks offer competitive CAD/USD rates at the account level.
For anything above $1,000 — and especially for amounts above $5,000 — the rate gap becomes a meaningful financial decision, not a marginal convenience tradeoff.
Are Credit Union Exchange Rates Better Than Big 5?
Credit unions typically apply a similar markup to the Big 5 banks on retail currency exchange — in the 2.5–3% range. Some credit unions offer slightly better rates to members on CAD/USD, but this varies significantly by institution. Desjardins, Canada’s largest credit union network, applies a comparable markup to the major banks on personal exchange. For large conversions, a dedicated exchange specialist will outperform a credit union rate in nearly all cases.
How to Get a Better Rate Than Any Canadian Bank
The process takes about five minutes the first time and is significantly faster on subsequent transactions:
- Register for a CanAm account — identity verification required once by FINTRAC regulations
- Call 1-844-915-5151 or log in to request a live rate for your conversion
- Lock in the rate — it’s held while your funds clear
- Send funds via Interac e-Transfer or bank wire
- Receive your converted funds same day or next business day
Use our rate comparison tool to see the live difference between what your bank is offering and what we’re offering right now. For a detailed breakdown of how bank rate markups are structured and why they’re difficult to spot, see our guide on how currency exchange margins actually work.
Bottom Line
The Big 5 banks charge similar rates to each other on CAD/USD exchange — all of them significantly higher than what a dedicated currency exchange service offers. The “best” bank for exchange rates is a question worth less attention than the question of whether a bank is the right channel at all for your conversion amount.
For any conversion above $1,000, the answer is almost always no. The savings are real, the process is straightforward, and the regulatory protections are equivalent — we are FINTRAC-regulated, just like every bank. Call us at 1-844-915-5151 to get today’s rate on your conversion.
