How to Exchange Currency in Toronto (Banks vs. Currency Exchange Counters)

You’ve just landed in the 6ix and are ready to grab a coffee and a BeaverTail. You reach for your wallet, but you only have foreign cash. Now you face a common traveler’s problem: finding the best way to exchange currency in Toronto.

Making the wrong choice can cost you a surprising amount of money. This guide breaks down your main options—banks and specialized exchange counters—to help you keep more cash for your trip.

First, Understand the “Real” Exchange Rate

Exchange Currency in Toronto — *Photo by John McArthur on Unsplash*

Before you swap any money, it helps to know about the mid-market rate. This is the rate you see on Google or financial news sites. It’s the midpoint between what buyers are willing to pay and what sellers are asking for a currency.

No one gets this exact rate, but the closer you get to it, the better the deal. The difference between the mid-market rate and the rate you are offered is where businesses make their profit.

Option 1: Using Toronto’s Big Banks

Your first thought might be to visit one of Canada’s major banks, like RBC, TD Bank, or BMO. You can find their branches on almost every corner.

The Good:

Convenience: Banks are everywhere, making them an easy-to-find option.
Security: You are dealing with a large, established financial institution.

The Not-So-Good:

Worse Rates: Banks typically offer poorer exchange rates than specialists. Their profit margin, or “spread,” is wider. For example, if the mid-market rate for USD to CAD is 1.38, a bank might sell you CAD at 1.42.
Potential Fees: Some banks may charge service fees on top of the exchange rate, especially for non-customers.
Client-Only Service: Some banks, like RBC, may only offer cash exchange services to their existing clients.

A bank is a fine choice for a small, quick transaction if you value convenience above all. For larger amounts, the poor rates will add up.

Option 2: Specialized Currency Exchange Counters

Scattered throughout Toronto, you will find businesses that specialize only in currency exchange. Places like Kantor Currency Exchange or Interchange Financial are well-known options.

The Good:

Better Rates: Because currency is their only business, their rates are much more competitive and closer to the mid-market rate.
No Hidden Fees: Reputable counters are transparent. The rate you see is the rate you get, with no extra service charges.

The Not-So-Good:

Fewer Locations: You will not find them as easily as a major bank. You might need to plan a specific trip to one of their locations, often found downtown or in major shopping areas.

If you are exchanging a significant amount of money, a specialized counter is almost always the better financial choice. The savings can be substantial.

A Warning: Avoid Airport Exchanges

Exchanging your money at Toronto Pearson Airport (YYZ) might seem convenient, but it’s a costly mistake. Airport counters are known for having the worst exchange rates of all, taking a large cut for the convenience factor. If you need cash right away, exchange only a small amount to cover your TTC fare to the city, and save the rest for a better location.

What About ATMs and Credit Cards?

ATMs: Withdrawing from a Canadian bank ATM can give you a fair rate. However, watch out for fees. Your home bank might charge a foreign transaction fee, and the local ATM may add its own fee. Check if your bank is part of the Global ATM Alliance (Scotiabank is a member), which can reduce or eliminate some fees.
Credit Cards: For purchases, using a credit card often gives a great exchange rate. When paying, if the machine asks if you want to be charged in your home currency or Canadian Dollars (CAD), always choose CAD. This prevents a costly process called Dynamic Currency Conversion (DCC).

The Final Takeaway

To get the most Canadian dollars for your money:

For large amounts: Plan a visit to a specialized currency exchange counter. The better rates will save you the most.
For small amounts: Using a trusted ATM is a reasonable option.
For purchases: Use a credit card and always pay in the local currency (CAD).

Where do you usually exchange your money when traveling in Toronto? Share your tips in the comments below.

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