Best way to exchange currency?
 

It seems to me it varies from country to country so in the case of Canada coming from the U.S.? Just use credit cards? Exchange travelers checks? Cash? At a bank? At the hotel? Using an ATM?

I'd suggest using a credit card when you can but bring some Canadian cash taken out from your local bank for snacks. If you need to take out cash when in Canada, I'd probably take it out from an ATM from a major bank (Royal Bank (RBC), Bank of Montreal (BMO), Toronto Dominion (TD), CIBC, Scotia, Van City). Obviously don't withdraw from a no-name/private ATM which are sprouting up everywhere. I don't know what the exchange rates they give at hotels but in supermarkets, McDonalds, etc, it's brutal. Travellers checks aren't worth the hassel for most situations IMO.

Find out which network (PLUS, CIRRUS) your US bank uses and use your ATM card to get Canadian cash. There are bank associated bank machines all over the place - I agree with the above poster about avoiding the unbranded machines (bad exchange rates and high fees). Most branches of the major banks will do US forex on a walk-up basis. There are forex shops all over the place, but their rates aren't as good.

You can use credit cards (Visa, Amex, MC) as easily in Canada as in the US, and most businesses, restaurants, hotels, etc. will take them. Ask ahead of time what your services charges may be for non-US dollar purchases (some cards have a fee, some don't).

Having some cash on hand is always good. Most touristy businesses in the big cities and border tourist areas (i.e. Niagara Falls) will take small amounts of US currency. However, you will get your change in Canadian currency. Stores/restaurants are NOT allowed to give change in US currency (a common
request of US tourists - the sales clerk isn't being a pain, they'd get in big trouble for operating an "exchange" if they did).

Be sure to find out your credit cards current exchange rate. In many cases they build the fee automatically in to the exchange rate. This additional percentage can be 3% or more. They will hide this fee in the exchange rate and then claim no additional fee for foreign transactions. Compare your credit cards fee to the same day/time fee of the major Canadian bank. This will give you an idea of the best avenue to choose when deciding how to exchange your currency.

Jer

Also, don't forget to call up your credit card company and tell them you'll be using your card(s) in Canada. They are more and more twitchy these days and will likely freeze them if you don't. (I go to Canada 3 to 4 times a year and I *still* have to call each time.)

Casinos!!
 

Depending on where you are going, I find casinos have the best exchange rate. However, after you get your cash, do a 180 and head to the door and resist the temptation. ;)

Just got back. We just exchanged currency at the bank which was about $2 more than at the hotel. I figured it was not a big deal since we ended up spending around $250 total.

Thanks for all the advice!

Where I work, in Canada, (large multinational hotel chain) they used to give a good exchange rate. One day they woke up and saw how much profit they could turn by lowering the exchange rate.

Now I recommend to everyone. Use your Credit Card (some US cards have high service chagres for CDN purchases, obviously these are an exception) for most purchases. And one ATM withdrawl for all the other loose cash transactions you may need.

Exhange at banks in Canada are pricey
 

Usually in foreign countries I just get money at an ATM, but I was recently in Canada and decided to follow the advice to just exchange money in the bank. What a mistake. If I had withdrewn money at an ATM from my credit union account, it would have cost me 1% plus $2 (from my credit union) + the ATM fee of $1-5. If I had withdrawn $300, the max at some ATMS, the effective rate would have been 2% - just over 3% depending, for a total charge of up to $10 or so. The bank's fees were nearly 10%, a total of around $30! They lowered the exchange rate to benefit themselves and then charged a whole bunch of random fees. The exchange rate that day was supposed to be about $1 US to .91 CAD, but I brought in $300 US and left with about $303 CAD, and that was after fighting to have some of the fees waived.

If I had to do it again, I would order some money from my credit union before I left and take it with me, and then I would see if I could do what I do in the US and get cash back grocery stores/drug stores to avoid ATM fees. If that didn't work, I would use an ATM. I will never use a bank again.

Wow, old thread.
I usually grab a wad of foreign cash here before heading to where ever I'm going [and taking my own advice earlier in the thread, I'll use my CC for big unexpected purchases or ATM some foreign cash if I run short when I'm there.]

However, I don't get foreign cash from my bank before leaving mainly because I don't find the exchange rate that great. But, they do waive that crazy forex fee because I have an account with them.

Nowadays, I've been going to a place called Vancouver Bullion and Currency Exchange. They're only located in Vancouver and only have 3 locations. However, one is located in the heart of downtown so that branch should be convenient for most tourists, though that location is not open on weekends. The buy/sell rates for USD is excellent as they only shave a few point off for themselves and there is no hidden fees. What you see as the exchange rate is what you get. Obviously they shave more points for more "exotic" currencies. The other downside is that "the secret's out" and it can get pretty busy there (ie. I've been there when they've ran out of USD's). Though, I guess if you're exchanging in the other direction, it shouldn't be a problem :).

Anyways, highly recommend using VBCE instead of a bank. Easiest is if you just exchange cash. They take debit but I'm not sure if it's connected to Cirrus, Plus, whatever networks. Obviously don't take personal cheques.

I always just do ATM.