If you are doing any sort of Canadian Dollar (CAD) conversion it pays to compare providers to see who can give you the best Canadian Dollar (CAD) exchange rate. High street banks are the worst place to convert money as they generally have poor Canadian Dollar (CAD) exchange rates. To get the best rate for large Canadian Dollar (CAD) currency transfers, smaller regular money transfers or cash travel money read our guide to the top providers.
|Money Transfer Provider||Who are they?||What do they offer?||Best for?||More Info|
|Founded in 2011, Wise was founded to primarily assist with small regular international money transfers.||Wise offer a very low cost way to send money abroad. There is an excellent tool for getting live quotes on the website||Making normal international payments for personal and business transactions,||See Offer|
|Azimo offers international money transfers to over 200 countries. The Aizmo money transfer app has had over a million downloads and over 30,000 5* reviews.||Azimo claim to be able to save up to 90% vs banks and traditional money transfer providers. Fees depend on the type of currency transfer and start at £1.||Azimo are good for small international money transfers. The Azimo offering is mobile first so suits those happy to do everything on their phone.||See Offer|
|Last year Xe group made over $115 billion in international currency transfers.||With Xe money transfers you can send money internationally 24/7 at bank beating rates & zero fees.||Small one off currency transfers. quick and simple online process and sign up.||See Offer|
|PagoFX (backed by Santander) offer fast, low-cost international money transfers with bank-level security and dedicated live support.||PagoFx fees are as low as 0,5% of the sent amount for the eurozone. 0,9% for Australia. 1% for the US.||Small regular currency transfers & those who want the security of their money transfers being backed by a Santander.||See Offer|
What is the Canadian Dollar (CAD) exchange rate?
The Canadian Dollar is the official currency of Canada, often referred to by traders as the 'loonie'. This derives from the picture of a loon on its $1 coin. CAD is the canadian dollar's foreign exchange abbreviation. Like the US Dollar, CAD is decimalised into 100 cents.
The Canadian Dollar is one of the most important currencies in the world. According to IMF data, Canada's $1.8 trillion GDP is among the top ten in the world. Moreover the country is a member of Group of Seven (G7) which underlines its importance in the global trading network. The CAD is the sixth most traded currency by volume in 2019.
The Bank of Canada controls the origination of the currency and the level of interest rate in the country. Its aim, as stated on its website, is to 'preserve the value of money by keeping inflation low and stable.' The institution began as a private institution in 1935 and was nationalised soon after.
The central bank's monetary board, currently led by Tiff Macklem, meets eight times a year to decide on the policy interest rate (overnight rate) and the appropriate monetary policy to address Canada's economic concerns. As of June 2021, the policy rate is set at 25 basis points (0.25%).
The most important currency pair for the loonie is that against the US Dollar due to Canada's proximity to the southern neighbour and its integrated trading pattern with the largest economic nation.
What factors affect the Canadian Dollar (CAD)?
What drives the Canadian Dollar?
Throughout its history, Canada is a major exporter. The country is blessed with an abundance of natural resources, from oil to wood to precious metals. A natural engine of growth is derived from exporting these commodities to US and other parts of the world such as China. According to XXX, Canada exports about US$380 billion worth of goods, and more than $280 billion of these go to the US. Therefore, a significant part of CAD's value is derived from commodity prices and commodity cycles.
To understand this relationship, look at the USDCAD's long-term chart below. The loonie often appreciate during the commodity upswing and depreciate during the commodity bear market. In 2008, at the tailend of the bull market, the loonie even broke parity with the US Dollar.
Over the past year, the currency rallied significantly against the dollar as oil, agricultural and metal prices rebounded significantly.
Another driver of the loonie is of course quantitative easing. Interest rates have stayed low everywhere after the Global Financial Crisis in 2008. This reduces the effectiveness of the key tool in central banks' arsenal - namely, lowering interest rates. To revive economic growth, central banks have enlarged their balance sheets during economic slowdowns to inject liquidity into the economy.
Look at the Bank of Canada's balance sheet below. The onset of the pandemic in March 2020 resulted in a massive jump in the balance sheet of BoC. At its peak, the central bank was buying up to C$5 billion worth of securities per week. But as the economy recovers, the central bank is slowly reducing this amount to $3 billion. This has bullish effects on the currency.
On day-to-day data flow, important statistics include GDP, unemployment, inflation, retail sales and sometimes housing. All these data can move the value of the loonie, particularly if they come in significantly higher or lower than expectations.
Bottom line - Like the Aussie Dollar, the Canadian Dollar is often viewed as a 'commodity currency' because of its major commodity exports. Therefore, its value can swing wildly whenever turbulence hits the commodity market.
Getting the best Canadian Dollar (CAD) Exchange Rate FAQ
Request a quote to see how much you can save – you’ll find a better Canadian Dollar (CAD) exchange rate than by using your bank.
Where to find the best exchange rate for Canadian Dollars (CAD)?
Comparison tables and Canadian Dollar (CAD) exchange rate quote request forms will help you find the best Canadian Dollar (CAD) exchange rate. Canadian Dollar (CAD) exchange rate comparison tables highlight the key features of currency transfer providers whereas Canadian Dollar (CAD) exchange rate quote request forms will make currency brokers compete for your business by offering the best exchange rate.
A few tips on getting the best Canadian Dollar (CAD) exchange rate:
- Always compare (read our guide to comparing exchange rates here)
- Never go with your bank
- Understand the fees
- Use forward to lock in the current exchange rate
How do I know I am getting the best Canadian Dollar (CAD) exchange rate?
Only go with a currency broker that offer fixed and transparent exchange rates and clearly show fees. All fees and charges should be built into the exchange rate. Have a look around currency providers' websites, and if you find that they don’t clearly show how much a currency transfer is going to cost you will need to ensure you get a fixed mark up rate in writing to ensure you get the best Canadian Dollar (CAD) exchange rate.
Should you convert Canadian Dollars (CAD) now or wait for the exchange rate to improve?
If you think the exchange rate is going to go in your favour have a chat with your currency broker. Most have been providing market timing advice to institutions and hedge funds for years and should be able to provide some guidenece on strategy. Or, if you are worried the rate will move against you it is possible to lock in the current rate for up to a year in advance with a currency forward.
How do I know what the Canadian Dollar (CAD) exchange rate commission is?
These are included in the exchange rate and are always fixed and transparent. Our exchange rates are always a fixed percentage from the live mid-market.
If you want to know how much the fees will be just ask and we’ll provide a clear breakdown. Read our guide on how to compare exchange rates, which also explains what the fees are and how to calculate them.
Will I really get the best Canadian Dollar (CAD) exchange rate?
Yes but you'll have to put a bit of effort it. If you are already using your bank or another currency broker send us a recent transaction and we will send you back a breakdown of exactly how much they are charging you in hidden fees and how our approach to fixed and transparent exchange rates will result in you getting the best Canadian Dollar (CAD) exchange rate.
Why buy Canadian Dollars (CAD) through a currency broker?
- Compare the cheapest bank beating currency exchange rates
- Expert help and advice to reduce your risk and exposure
- Dedicated account managers every step of the way
- Convert funds online and platform access 24/7
- Same day and forward currency exchange contracts
- Zero service charge, commission or transfer fees
- Transfer money direct to single or multiple beneficiary accounts
Check you are getting the best Best Canadian Dollar (CAD) Exchange Rate
You can use the below table of Best Canadian Dollar (CAD) exchange rates against other G10 currencies to check what fees you would pay and what foreign exchange you would receive from currency conversion.
Live Best Canadian Dollar (CAD) exchange rates versus other major currencies
|Currency||Mid Rate||10,000 AUD||If Fees 0.25%||If Fees 0.5%||If Fees 1%|
|Canadian dollar (CAD)||0.9368||9,368.20||9,344.78||9,321.36||9,274.52|
|Japanese yen (JPY)||84.5116||845,115.70||843,002.91||840,890.12||836,664.54|
|New Zealand dollar (NZD)||1.0815||10,814.56||10,787.53||10,760.49||10,706.42|
|Norwegian krone (NOK)||6.4193||64,193.38||64,032.90||63,872.41||63,551.45|
|United Kingdom Pound sterling (GBP)||0.5464||5,463.76||5,450.10||5,436.44||5,409.12|
|Swedish krona (SEK)||6.4060||64,060.11||63,899.96||63,739.81||63,419.51|
|Swiss franc (CHF)||0.6924||6,924.09||6,906.78||6,889.47||6,854.85|
|United States dollar (USD)||0.7708||7,708.00||7,688.73||7,669.46||7,630.92|
The table displays the live exchange rates display that you would receive from a conversion of 10,000 Best Canadian Dollar (CAD) into other major currencies based on the below:
- Mid-market price (the price at which banks exchange money)
- If fees were 0.25% (we would consider this a cheap mark up)
- If fees were 0.5% (we would consider this an average mark up)
- If fees were 1% (we would consider this an expensive mark-up)
To manually calculate what mark-up a currency broker has charged you please use our historic mark-up calculator.