How to Convert Your Canadian Dollars to US Dollars?


Are you planning to send money from Canada (CAD) to the US (USD)? Here’s how to do it with ease and convenience at great exchange rates. 

The USD, aka the greenback, is the dominant world currency and made up for 88%¹ of all forex trading in 2019. It is not a surprise that USD is the most traded currency in the world. The greenback’s global acceptance means you have plenty of reasons to convert your Canadian dollars to American dollars and send money abroad, across different borders.

The top reasons for transferring CAD to USD include paying for studies overseas, purchasing foreign property, or settling an international invoice. Whatever your reasons for buying the greenback, this guide explains everything you need to know about converting CAD to USD and getting the best value for your money.
 

What’s the best place to buy USD in Canada?

There are many FX service providers you can turn to when buying US dollars. For example, banks and many other financial institutions offer this service alongside their main offerings. Although banks are convenient places to buy USD in Canada, they’re not the best option.

When you are converting Canadian dollars to US dollars, you can get better value with a service provider specializing in foreign exchange. This gives you access to currency specialists that offer superior customer service and simplify any foreign exchange transaction process. Overall, the best way to exchange CAD for USD should provide the following additional benefits:

Competitive exchange rates: You always want to get the best exchange rate available at that time. That means for an X amount of Canadian dollars, you’ll get more US dollars compared to rates offered by banks.

Low transfer fees: In order to keep costs down, you should prioritize low transfer fees and avoid expensive bank charges. That's why best way to buy USD in Canada is through an online foreign exchange service like MTFX.

Online convenience: Converting currency online outside of banking hours is the ultimate convenience. For faster and cheaper conversions, you need an FX provider with a secure 24/7 platform and an efficient technological operational back-end, such as MTFX

Trusted and reliable services: The overall best way to convert CAD to USD is to look for a provider with a good track record, regulated by FINTRAC, and transparent with their exchange rates.
 

What’s the Canadian dollar to US dollar exchange rate?

The USD/CAD currency pair is not immune to market fluctuations, so the rate you get varies. That's why before converting Canadian dollars to USD, ensure you are getting the best rate. Keep in mind that the United States Dollar is traditionally the stronger of the two currencies.

The best way to maximize the amount of USD you get is to use a provider that offers the best rates on international money transfers. Fortunately, checking the rate you'll get is fairly simple. You can convert quickly and get a reliable estimate with a rate calculator.

Want to know how much is $1 Canadian in US dollars? Use the MTFX rate calculator to get real-time rates and convert Canadian dollars to US dollars for any amount.
 

Best time to exchange CAD to USD

Converting Canadian money to US dollars effectively involves considering several factors that can influence exchange rates. While it's important to remember that the foreign exchange market is highly volatile and unpredictable, there are some general guidelines you can follow to potentially get a better exchange rate for converting Canadian dollars to USD:

Central bank policies: The Bank of Canada and the Federal Reserve in the US have significant impacts on the exchange rate of USD/CAD through their monetary policies. Interest rate decisions, quantitative easing measures, and other policy announcements can cause fluctuations in the exchange rate.

Economic indicators: Pay attention to key economic indicators such as interest rates, inflation rates, employment figures, and GDP growth in both Canada and the US. Strong economic performance in Canada relative to the US could strengthen the CAD against the USD, and vice versa.

Political stability and events: Political events and stability in both countries can affect investor confidence and influence currency strength. Elections, trade negotiations, and geopolitical tensions can lead to currency volatility.

Time of day and week: The foreign exchange market operates 24/5, and the best time to exchange currency can sometimes depend on market hours and liquidity. Generally, the highest liquidity and volume occur during the overlap of the New York and London trading sessions (approximately 8:00 AM to 12:00 PM EST). Additionally, Fridays and days leading up to holidays may see more volatility due to lower trading volumes and traders closing positions for the weekend or holiday.

Seasonal patterns: Although less reliable, some currencies exhibit seasonal patterns due to tourism, agriculture cycles, or fiscal policies. Researching historical trends before you convert Canadian to US dollars might provide some insights, but this method should be used cautiously.
 

When should I convert Canadian dollars to US dollars?

The best time to convert Canadian to US dollars is when your desired exchange rate is met. This is the rate that saves you more money on overseas transfers. Fortunately, you can still capture a favorable rate without obsessively keeping track of market fluctuations.

FX markets may be unpredictable, but there are several specialized tools you can take advantage of.

Rate alerts – You don’t have to stay glued to the market 24/7. With rate alerts, you get notified whenever your desired rate is reached.

Forward contracts – This tool lets you lock in a favorable USD/CAD exchange rate for up to two years once you make the required deposit.

Market orders – Similar to a forward contract, but suitable for transactions without a specified delivery date. The transaction occurs whenever the desired rate is reached.

Currency charts – Check out the latest USD/CAD currency pair trends to find the best time to buy.

These free FX tools are great at letting you know how the market is moving and helping you plan your transactions accordingly. If you’re using an international money transfer specialist, the most significant benefit is getting expert guidance to help you determine the best time to transfer your money.

 

 

How to Convert CAD to USD with MTFX?

Converting Canadian Dollars to USD with MTFX is a straightforward process, tailored for both individuals and businesses seeking efficient and cost-effective currency exchange services. Here’s a step-by-step guide on how to carry out the conversion:

Create an account: First, you'll need to sign up for an account. You'll need to provide some basic information such as your name, email address, and contact information, along with verification documents which could include a government-issued ID and proof of address. This is part of the Know Your Customer (KYC) process that financial institutions must follow.

Verify your account: Once you've submitted your registration form and necessary documents, we will need to verify your account. This process can take a few hours to a few days, depending on the verification queue and the clarity of the documents provided.

Log in and access the dashboard: After your account is verified, log in to your MTFX account. You'll be taken to your dashboard, where you can manage your currency exchange transactions, view past transactions, and access various tools and services offered.

Get a quote: Before executing any currency exchange, you may get a quote. Look for the option to get a live exchange rate quote on the dashboard. Enter the amount you wish to convert from CAD to USD. We will provide you with a real-time exchange rate, which is  more competitive than traditional banks' rates.

Set up your exchange: If you're satisfied with the quote, you can proceed to set up your currency exchange. Enter the specific details of your transaction, including the exact amount of CAD you wish to convert and the recipient's bank account details in the US.

Fund your exchange: You will then need to fund your exchange. This involves transferring the CAD amount you wish to convert to MTFX's designated account.

Review and confirm: Before finalizing the transaction, review all the details carefully to ensure accuracy. This includes the exchange rate, the amount being exchanged, and the recipient's account information. If everything looks correct, confirm the transaction.

Execution and transfer: MTFX will execute the currency exchange once we receive your funds. We will then transfer the equivalent USD amount to the designated recipient account. The time it takes for the recipient to receive the funds can vary.
 

CAD to USD forecast 2024

MTFX publishes USD/CAD forecast every month to ensure our clients remain on top of the industry news, updates, and latest developments. The daily analysis and forecast enable you to make informed decisions for each of your Canadian to US dollar exchange helping you and your business save thousands of dollars every year.
 

Transfer and convert CAD to USD today

Canadians, in particular, have more reasons to buy the USD. That’s because Canada is one of the North American countries that share a strong business partnership and the longest international border with the US. This makes the USD/CAD currency pair one of the most popular on the FX market.

Need to convert Canadian dollars to American dollars? MTFX can help you with competitive USD-to-CAD exchange rates, low transfer fees, expert guidance, and a range of specialist tools.

How long does it take to transfer money in CAD to USD? – MTFX’s international transfers are quick, only taking 24-48 hours.

What is the cheapest way to convert CAD to USD? – Using a specialist international money transfer service like MTFX means you save every time when you send money abroad by getting the best exchange rate for USD/CAD.

Why do currency conversion rates differ between companies? – Specialist providers are cheaper than non-specialist providers because they offer the mid-market rate. For example, MTFX works on slim margins because we deal in high-volume transactions.

Open an account today with MTFX and start making the most of your money whenever you transfer Canadian dollars to US dollars.

 


 

FAQs

1. How to convert Canadian dollars to US dollars quickly?

For a quick conversion of Canadian dollars to US dollars, using online currency exchange platforms like MTFX is your best choice. Online platforms allow you to register and verify your account swiftly, often within a day. Once your account is set up, you can convert currencies in real-time by simply entering the amount you wish to exchange and confirming the transaction.

2. What's the cheapest way to convert CAD to USD?

The cheapest way to convert CAD to USD typically involves avoiding traditional banks due to their higher fees and less competitive exchange rates. Instead, use specialized currency exchange services which offer more competitive rates and lower fees.

3. What's the best time to exchange CAD to USD?

The best time to convert CAD to USD is when the exchange rate is in your favor. Exchange rates fluctuate due to various factors, including economic indicators, market sentiment, and central bank policies. Using a specialized FX service like MTFX can be advantageous, as we offer tools like rate alerts, allowing you to set your desired exchange rate so you can be notified when it's reached.

4. Where can I change Canadian dollars to US dollars?

You can change Canadian dollars to US dollars at banks, currency exchange kiosks, especially in airports and tourist areas, and through online currency exchange platforms. Among these options, online platforms like MTFX tend to offer more competitive rates and convenient services.

5. How can I get the best exchange rate USD/CAD?

To get the best exchange rate for USD/CAD, it's crucial to monitor the market trends and be aware of the factors that influence exchange rates. Consider setting up USD/CAD rate alert with MTFX, so you'll be notified when the exchange rate hits your target, allowing you to make the exchange at the most advantageous time. Comparing rates from multiple sources and staying informed about market conditions can further enhance your chances of getting the best rate.

 



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Sources

  1. Survey of Foreign Exchange

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