What is the spot rate?

The spot rate is the wholesale interbank exchange rate at which large financial institutions trade with each other. The closest publicly available reference for CAD/USD is the Bank of Canada daily exchange rate, published once each business day by 16:30 ET and based on aggregated price quotes from financial institutions. It is the benchmark against which retail FX cost is measured.

Do Canadian banks charge a fee on foreign exchange?

Most do not charge a separate FX fee. Instead they apply a spread, a markup built into the rate quoted to you. The same conversion processed by the same bank on the same day at the Bank of Canada daily rate would yield more US dollars; the difference is the bank's revenue on the transaction.

How do I measure how much my bank actually charged me?

Three steps: (1) note the exact rate your bank applied (on the confirmation, statement, or branch slip); (2) look up the Bank of Canada daily exchange rate for the same trade date at bankofcanada.ca/rates/exchange/daily-exchange-rates/; (3) compute the percentage difference. That percentage is the embedded spread, your real cost.

Which Canadian banks publish their FX spread?

CIBC Investor's Edge publishes a tiered FX spread on its Pricing page (1.6% under USD 25,000, dropping to 0.2% over USD 1 million, calculated using the Bank of Canada Annual Exchange Rate). For retail banking and wire transfers, most Canadian banks do not publish a precise spread number; the spread is embedded in the rate they quote at the time of the transaction.

Are wire transfer fees separate from FX cost?

Yes. Wire transfer fees are explicit, published charges (for example, RBC business online banking charges CAD 15.00 for outgoing wires under CAD 2,500 and CAD 20.00 for wires between CAD 2,500 and CAD 10,000). The FX spread is a second, separate cost embedded in the conversion rate. A snowbird wiring CAD 100,000 for a Florida closing pays both: the explicit wire fee plus the embedded FX spread.

Are there cheaper alternatives to bank FX for large transfers?

For amounts above roughly CAD 5,000 to 10,000, dedicated FX brokers and the Norbert's Gambit technique through a brokerage account typically deliver spreads materially below retail bank rates. See the related guides on FX brokers and Norbert's Gambit for the mechanics and the trade-offs.

The real cost of bank FX conversion vs the spot rate (2026 method)

Section 01What the spot rate actually is

In shortThe spot rate is the wholesale rate at which large financial institutions trade currencies among themselves. There is no single retail "spot" you can transact at. The closest publicly available reference for Canadians is the Bank of Canada daily exchange rate, computed from aggregated quotes from financial institutions and published once each business day.

In FX market language, "spot" means a transaction settling on a near-term standard settlement date (typically two business days for CAD/USD). The price at which banks and other large institutional participants execute spot trades with each other is the "interbank" or "mid-market" rate. This rate moves continuously during market hours, in fractions of a cent.

Retail customers (individuals, small businesses) cannot transact at the interbank rate. The rate you receive is the interbank rate plus or minus a markup the bank applies as compensation for execution, risk, and handling. The markup is the spread.

The Bank of Canada (BoC) publishes a once-per-day rate for use as a public reference. The page reads: "The daily average exchange rates are published once each business day by 16:30 ET. Exchange rates are expressed as 1 unit of the foreign currency converted into Canadian dollars." The Bank explicitly states: "All Bank of Canada exchange rates are indicative rates only, obtained from averages of aggregated price quotes from financial institutions." This is a reporting service, not a transactable rate. You cannot ask the BoC to convert your CAD to USD at the published rate.

For practical purposes, however, the BoC rate is the most authoritative neutral benchmark Canadians have. It is what consumer-facing comparisons cite. It is the rate against which to measure your bank's markup.

Verified fact The Bank of Canada publishes daily exchange rates free of charge through the Valet API: "No registration is required to use the Valet API, you do not need an access key, and there is no cost associated with using it." Data is available in CSV, JSON, and XML formats. Mid-May 2026 example: the USD/CAD daily rate ranged from 1.3667 (2026-05-11) to 1.3752 (2026-05-15).Source: Bank of Canada — Daily exchange rates and Valet API documentation (bankofcanada.ca/rates/exchange/daily-exchange-rates/ and bankofcanada.ca/valet/docs).

Section 02How banks build a spread into the rate

In shortCanadian banks generally do not levy a separate FX fee. The bank's revenue on a retail conversion comes from the spread, the difference between the wholesale rate the bank pays and the retail rate the bank passes on to you. The result: the conversion looks free, but is not.

When you ask a Canadian bank to convert CAD 100,000 into USD, the bank does two things. First, on its own books, it transacts at (or close to) the interbank rate and locks in the wholesale execution. Second, it quotes you a rate that is worse than the interbank rate by a spread. The difference between those two rates, multiplied by the conversion amount, is the bank's revenue on the transaction.

The spread is not always visible to you as a separate line item. On many retail conversions, the only number you see is the all-in rate the bank applied. The bank statement may show: converted CAD 100,000 to USD at 1.3380 on May 15, 2026. If the same day's Bank of Canada rate was 1.3752 (the BoC rate on 2026-05-15), the spread comes out to: (1.3752 minus 1.3380) divided by 1.3752 = 2.7 percent. That is a CAD 2,700 hidden cost on a CAD 100,000 conversion.

This is, by design, harder to compare across banks than an explicit fee. An explicit fee shows up on the statement and adds up across the year. A spread is buried in the rate.

Verified fact TD Canada Trust discloses its FX rate-setting practice on its commercial banking site: "TD updates retail exchange rates frequently throughout the day based on many factors, including interbank exchange rates and their costs and risks related to dealing in foreign currency." TD also notes: "Exchange rates for foreign currency transactions not involving physical foreign currency cash, such as transfers, payments, cheques or drafts, are generally more favourable than rates for buying and selling physical foreign currency cash." Cash conversion typically carries a wider spread than electronic conversion.Source: TD Canada Trust — Foreign Currency Exchange Services (td.com/ca/en/personal-banking/solutions/currency-exchange-services and td.com/ca/en/commercial-banking/foreign-exchange-rates).

Section 03The CIBC Investor's Edge example: a published spread

In shortMost Canadian banks do not publish a fixed spread. CIBC Investor's Edge, the bank's online brokerage division, is a public exception: it publishes a tiered spread schedule from 1.6 percent under USD 25,000 down to 0.2 percent over USD 1,000,000, calculated against the Bank of Canada annual exchange rate. This is the most concrete primary-source figure available for a Big 6 bank affiliate.

On the CIBC Investor's Edge Pricing page, in the "Foreign currency transactions" section, CIBC publishes the following table:

Tier (USD trade size)

Spread (basis points · percent)

$0 to $24,999.99Most small retail trades fall here.

↔

225 bp · 1.6 percentThis is what a snowbird wiring USD 20,000 through Investor's Edge would pay in spread.

$25,000 to $99,999.99

↔

130 bp · 0.9 percent

$100,000 to $249,999.99

↔

75 bp · 0.5 percent

$250,000 to $499,999.99

↔

40 bp · 0.3 percent

$500,000 to $999,999.99

↔

35 bp · 0.3 percent

$1,000,000 and upInstitutional-style pricing.

↔

25 bp · 0.2 percentThis level approaches what dedicated FX brokers offer to retail.

Two important caveats apply to this schedule. First, this is the spread for CIBC Investor's Edge (the brokerage), not CIBC retail banking. The spread on a CIBC chequing-account wire transfer is not published as a precise number and is generally wider than the brokerage tiers. Second, the percent column is calculated against the Bank of Canada annual exchange rate (not the daily rate). The percent against the daily rate on the actual trade day can differ slightly.

The remaining Big 6 banks (RBC, TD, BMO, Scotiabank, National Bank) do not publish a fully comparable tiered table for retail FX. They generally describe the rate as "set at the time of the transaction" and direct customers to ask for a quote before executing. That makes CIBC Investor's Edge's published schedule a useful anchor point: 1.6 percent on small trades is what a Big 6 affiliate is willing to publicly post. Retail wire-transfer spreads at the parent banks tend to be higher.

Verified fact CIBC Investor's Edge discloses, in note 1 of its Pricing page: "In all such transactions and at any time a conversion of currency is made, we or an affiliate of ours will act as principal with you in converting the currency at rates established or determined by us or parties related to us. In performing this function, we and the parties related to us will earn spread-based revenue, in addition to the commission or fees applicable to such a trade, based on the difference between the rate we and our affiliates obtain and the rate you receive."Source: CIBC Investor's Edge — Pricing (investorsedge.cibc.com/en/pricing.html, Foreign currency transactions section, footnote 1).

Section 04How to measure your real bank cost

In shortThree numbers do the work: the rate your bank applied, the Bank of Canada daily rate for the same trade date, and the difference expressed as a percentage. The result is the spread. Multiply the spread by the amount converted to get the dollar cost.

The three-step method

Find the rate your bank applied. Look at the conversion confirmation, the line on your account statement, or the branch slip if you converted at a teller. The number you want is the CAD-per-USD rate the bank used. If your statement shows the inverse (USD-per-CAD), invert it.
Look up the Bank of Canada daily rate for the same trade date. The Bank publishes a free lookup at bankofcanada.ca/rates/exchange/daily-exchange-rates-lookup. Enter the date and read the USD line. The rate is expressed as CAD per 1 USD.
Compute the difference, as a percentage of the BoC rate. Spread percent = (BoC rate minus bank rate) divided by BoC rate, multiplied by 100. If the result is negative, you got the BoC rate or better, which is unusual on retail conversions and worth verifying.

A side note on directionality

When converting CAD to USD, you are selling CAD and buying USD. The bank buys CAD from you at a worse-than-BoC rate (it gives you fewer USD per CAD). When converting USD to CAD, the direction reverses: the bank sells you CAD at a worse-than-BoC rate (it charges you more USD per CAD). The math is symmetric; the sign of the difference flips. The spread itself is positive in both directions.

A practical aside

Some banks display the rate to four decimal places on the statement; others round. If your bank shows 1.34, the actual rate may have been 1.3415 or 1.3389. Asking customer service for the precise rate to four decimals is fair, especially for a large conversion.

Editorial note Run this calculation on the first few CAD-to-USD conversions you make after opening a USD account. If your bank is consistently 2 percent or more away from the BoC rate on a USD 10,000-plus conversion, you are paying retail-tier pricing. The next-tier options (USD-denominated chequing account, FX broker, Norbert's Gambit through a brokerage) become worth the small operational overhead.

Section 05Worked example: CAD 100,000 for a Florida closing

In shortFor a typical snowbird-scale CAD-to-USD wire (around CAD 100,000), a 2 to 3 percent embedded spread on a Big 6 bank conversion costs CAD 2,000 to CAD 3,000. The same conversion at the Bank of Canada daily rate, with a CIBC Investor's Edge-tier 0.9 percent spread, would cost CAD 900. The dollar-cost difference compounds at higher amounts.

Take a Canadian buyer in May 2026 wiring CAD 100,000 from their RBC chequing account to a Florida title company escrow for the closing of a Pompano Beach condo. The BoC daily rate on the trade date (illustration: 2026-05-15) is USD 1 = CAD 1.3752, equivalently CAD 1 = USD 0.7272. At the BoC rate, CAD 100,000 buys exactly USD 72,720. That is the theoretical maximum.

Scenario A — Big 6 retail bank wire

Apply a 2.5 percent embedded spread (a figure commonly observed on retail CAD-to-USD wires at Big 6 banks, illustrative). The bank's effective rate becomes 1.3752 × (1 − 0.025) = 1.3408 USD per CAD-equivalent: the bank gives you USD that, multiplied back to CAD, returns less than 100,000. Translating the spread to USD output: USD 72,720 × (1 − 0.025) = USD 70,902. The seller receives USD 70,902 at closing. The CAD-equivalent cost of the spread: CAD 2,500. Add the wire transfer fee. On RBC business online banking, an outgoing wire of CAD 100,000 falls above the published USD 2,500 to USD 10,000 tier, and the fee on a CAD account is published as USD 20 (CAD-equivalent) for that tier; tiers above CAD 10,000 use a separate posted schedule, verify with your bank for the exact figure. Total cost: CAD 2,500 spread plus the explicit wire fee.

Scenario B — CIBC Investor's Edge tier (0.9 percent on USD 25,000 to 99,999.99)

For the USD 25,000 to USD 99,999.99 tier, CIBC Investor's Edge publishes 130 bp = 0.9 percent. CAD 100,000 converts to approximately USD 72,720 at the BoC rate; applying a 0.9 percent spread yields about USD 72,066. CAD-equivalent cost of the spread: CAD 900. To use this pathway, however, you would need a Investor's Edge account and would typically run a Norbert's Gambit transaction (see the related guide) rather than a direct wire conversion.

Scenario C — Dedicated FX broker (illustrative)

Dedicated FX brokers (covered in the related guide on Wise, OFX, Knightsbridge FX) typically advertise spreads in the 0.4 percent to 1.5 percent range on retail-size transfers. Concrete fees vary by broker, currency pair, transfer method, and amount; verify on each broker's site at the time of transfer. The mechanics are different from a bank wire: the broker holds your CAD until execution, then sends USD to your destination, with the broker collecting their spread on the conversion.

The headline result

Choosing between scenario A and scenarios B or C saves on the order of CAD 1,500 to CAD 2,000 on a single CAD 100,000 conversion. For a snowbird couple buying and selling, financing reno work, doing multiple seasonal wires, the cumulative savings across a Florida ownership cycle reach low five figures.

Typical range On a CAD 100,000 wire from a Big 6 chequing account to a U.S. account, the embedded FX spread commonly observed in retail reporting ranges from approximately 1.5 percent to 3 percent depending on bank, day, and customer relationship; this is what consumer reporting and brokerage comparisons cite. Always verify the actual spread on your own confirmation against the Bank of Canada daily rate for the trade date.Source: spread analysis methodology described on TD Canada Trust commercial banking site; CIBC Investor's Edge Pricing (published tiers); FCAC Decision #120 (consumer-disclosure framework for FX on credit card statements).

Section 06Wire transfer fees on top of FX

In shortWire transfer fees are explicit, published charges that come on top of the embedded FX spread. They are typically modest in absolute terms (single or low-double-digit CAD) for online business wires, higher for personal in-branch wires. Intermediary bank fees can also be deducted in transit. Plan for both.

Most Big 6 Canadian banks publish a wire-transfer fee schedule on their business and personal banking pages. The fee structure is usually tiered by amount, channel (online vs in-branch), and direction (outgoing vs incoming).

RBC publishes the following for outgoing wires from its online business banking platform: USD 15.00 for wires under CAD 2,500 and USD 20.00 for wires between CAD 2,500 and CAD 10,000. Fees for higher amounts are not listed on the published business online banking schedule (snowbirds should call to confirm before sending). Wire-related follow-up actions carry separate fees: payment not received within 60 days, USD 25.00 plus GST; cancellation requests, USD 25.00 plus GST. The published cut-off times matter for time-sensitive transactions: for U.S. wires involving currency conversion, the cut-off is 16:30 ET, two business days before the estimated delivery date.

Two cost categories often surprise snowbirds:

Intermediary bank fees. When a CAD-to-USD wire travels through one or more correspondent banks on the SWIFT or Fedwire network, those intermediaries can deduct a service fee from the funds in transit. The recipient may receive less than expected. RBC's own page acknowledges this: "Additional service fees by any intermediary and receiving bank may apply." For a U.S. real estate closing, this is the difference between sending USD 70,902 and the title company receiving USD 70,852 (or less). Title companies are aware of this and may build in a small cushion, but it is worth confirming with your closing agent in advance.
Receiving bank fees. Some U.S. banks charge an incoming wire fee (typically USD 15 to USD 25) on the receiving end. This is taken from the recipient's funds.

The result, for a snowbird wiring CAD 100,000 to fund a Florida real estate closing: the explicit fees are typically a small fraction of the FX spread cost. The FX spread is the dominant line item; the wire fees and intermediary deductions are smaller but worth tracking.

Verified fact RBC's published business online banking schedule states: "The fees for outgoing wire payments from RBC Online Banking for business are listed below. Canadian dollar value < $2,500: $15.00; $2,500 to $10,000: $20.00. Fees are the same for both Canadian and U.S. dollar wire payments. Limits and fees for payments from U.S. dollar accounts are based on the value in Canadian dollars."Source: RBC — Wire Payments in RBC Online Banking for business (rbcroyalbank.com/onlineservices/business/online-wire-payments/fees-schedule.html).

Section 07USD account vs point-of-sale conversion

In shortOpening a USD-denominated account at a Canadian bank, then funding it via a one-time wholesale-style conversion and using a USD debit or credit card for Florida spending, generally produces lower lifetime FX cost than letting your CAD credit card convert each transaction. The trade-off: an extra account to manage and a fee schedule to monitor.

Two structural choices stand on opposite sides of the spread cost.

Option A — Spend on a CAD credit or debit card, converted on each transaction

Most Canadian credit cards convert each USD transaction at the network rate (Visa or Mastercard) plus a typical 2.5 percent foreign-currency transaction fee disclosed on the cardholder agreement. The result: every Florida coffee, gas fill, grocery run, restaurant tab, and HOA payment carries the 2.5 percent markup. Across a five-month snowbird season at USD 5,000 per month of spending, that is USD 5,000 × 5 × 0.025 = USD 625 of conversion cost, on top of the network rate. Some credit cards (Brim, Home Trust Preferred, Scotiabank Passport Visa Infinite, others) waive the foreign-transaction fee; check your card.

Option B — Hold a USD-denominated account, fund with periodic wholesale-style conversions

The setup: open a USD chequing account at a Canadian bank (RBC, TD, BMO, Scotiabank, CIBC, and National Bank all offer one), fund it via a small number of larger conversions (where you can negotiate or use a better channel), and spend from it via USD debit card, USD credit card, or USD billpay. Each retail transaction in USD then debits USD directly, no per-transaction conversion. The FX cost compresses into the funding events.

For a snowbird whose Florida spending exceeds CAD 30,000 per year, option B typically saves 1 to 2 percentage points of spread cost, plus the foreign-transaction fee on the CAD card. At CAD 30,000 spent, that is CAD 300 to CAD 600 per year, before counting the convenience of having USD at hand for property taxes, HOA, contractor payments, and unplanned expenses.

The hybrid case

Many snowbirds use a hybrid: a USD-denominated credit card for Florida day-to-day spending (no per-transaction conversion, paid down from a USD account), funded by periodic CAD-to-USD wholesale-style conversions via a USD account opened at the Canadian bank. The CAD card is reserved for Canadian travel and as a backup. See the related guide on USD credit cards for Canadians.

Editorial note If you spend more than approximately CAD 25,000 per year in Florida, the USD account plus USD card setup is typically worth the small operational overhead. Below that threshold, the savings are modest and the no-foreign-transaction-fee credit card route is simpler.

Section 08The "no-fee" advertising trap

In short"No FX fee" and "0 percent commission" in retail bank advertising mean the bank does not charge a separate fee on top of the rate. It does not mean the conversion is at the wholesale rate. The bank's revenue comes from the rate it sets for you. The marketing is technically accurate; the consumer impression is often wrong.

Bank-of-Canada-published rates are wholesale. Retail rates are wholesale plus spread. "No fee" advertising obscures the spread because the customer assumes "no fee" implies "no markup". The Financial Consumer Agency of Canada (FCAC) has previously taken enforcement action where it found that information disclosed on consumers' statements in relation to the foreign currency exchange rate for foreign currency transactions was not clear and was misleading to borrowers (FCAC Decision #120).

This is one of the few areas of retail banking where pricing transparency lags credit card APR disclosure, loan APR disclosure, or fund management expense ratios. The practical defense is to measure your own rate against the BoC daily rate after each conversion (see Section 4) and to keep records over time. Over a snowbird season, the cumulative cost becomes visible and helps inform whether to change channel for the next round.

Verified fact FCAC oversight of Canadian banks includes monitoring compliance with disclosure obligations applicable to foreign-currency transactions. FCAC has the authority to publish commissioner decisions and to impose administrative monetary penalties for non-compliance with consumer-protection provisions of the Bank Act and related regulations.Source: Financial Consumer Agency of Canada — Commissioner decisions (canada.ca/en/financial-consumer-agency/services/industry/commissioner-decisions.html); Financial Consumer Protection Framework (canada.ca/en/financial-consumer-agency/services/banking/rights-new-protections/consumer-protection-framework.html).

Section 09Cheaper alternatives, when they make sense

In shortFor amounts above approximately CAD 5,000 to CAD 10,000, dedicated FX brokers (Wise, OFX, Knightsbridge FX) typically offer spreads materially below retail bank rates. For investment-account holders, Norbert's Gambit through Questrade or Wealthsimple delivers a near-wholesale conversion via a paired US-dollar ETF trade. Both are covered in detail in dedicated guides.

Three alternatives are commonly used by snowbirds to compress the bank FX cost.

1. FX brokers (Wise, OFX, Knightsbridge FX)

Specialist money-transfer companies provide CAD-to-USD conversion at advertised spreads typically in the 0.4 percent to 1.5 percent range on retail-size transfers, depending on amount and broker. The mechanics involve transferring CAD to the broker (typically by bank transfer or Interac e-Transfer), the broker converting at their internal rate, and the broker sending USD to the destination account or recipient. Compliance overlay: each broker is licensed under Canadian provincial money-services-business rules and reports above-threshold transactions to FINTRAC. See the dedicated guide on FX brokers (Wise, OFX, Knightsbridge FX) for the operational walkthrough.

2. Norbert's Gambit through a brokerage account

The Norbert's Gambit technique converts CAD to USD by buying a dual-listed ETF on the Canadian exchange (typically DLR.TO) in CAD, journaling it to its USD equivalent (DLR.U.TO), and selling on the U.S. side for USD. The conversion happens at the spread between DLR.TO and DLR.U.TO, which approximates the wholesale rate. Total cost: two commission charges plus the tiny intraday spread, typically well under 0.5 percent on amounts above CAD 10,000. See the dedicated guide on Norbert's Gambit through Questrade for the step-by-step procedure.

3. Forward contracts (large pre-planned transactions)

For a known future CAD-to-USD conversion (typical example: a real estate closing scheduled 60 days out), a forward contract locks in the rate today and settles on the target date. This eliminates FX risk during the wait. Forwards are offered by FX brokers (Knightsbridge FX, OFX, Wise for business accounts) and by Big 6 commercial banking desks for larger amounts. See the related guide on forward contracts for Florida real estate purchases.

Editorial note For one-time conversions under CAD 5,000, the operational overhead of opening an FX broker account or executing a Norbert's Gambit usually outweighs the savings. For amounts above CAD 10,000 and especially for the recurring snowbird transfer pattern, the alternative channels become clearly preferable. The first alternative is the cheapest from an effort standpoint: a USD-denominated chequing account at the Canadian bank, funded with periodic conversions.

Section 10Common mistakes and traps

Assuming "no fee" means no markup. Most retail FX conversions in Canada are spread-based, not fee-based. "No fee" is technically accurate but commercially misleading. Measure against the BoC daily rate.
Comparing rates across banks at different times of day. FX rates move continuously. A 10:00 quote at RBC and a 14:00 quote at TD on the same day can show a 0.4 percent difference that is just market movement, not bank pricing. Use the BoC daily rate as the common anchor for cross-bank comparisons.
Converting cash at a teller for a large amount. Cash conversions carry the widest spread, because the bank has to ship, count, and hold physical banknotes. For amounts above approximately CAD 1,000, electronic conversion (USD chequing account, wire) is materially cheaper than cash.
Wiring on a Friday for a Monday closing. Friday SWIFT wires can sit over the weekend at intermediary banks. For a U.S. closing on Monday, wire by Wednesday at the latest, with cut-off times verified.
Sending without a recipient-confirmed amount. Intermediary bank fees can be deducted in transit. For real estate closings, agree with the title company what amount they need in their account; you may need to send slightly more than the closing balance to cover potential deductions.
Holding USD in a CAD account and using the credit card. If you receive USD income (rental, royalties, gifts), and deposit it to a CAD account, the bank converts at its retail rate on the way in. A USD-denominated account avoids that conversion entirely.
Forgetting the recipient bank's incoming wire fee. Some U.S. banks charge USD 15 to USD 25 on incoming international wires. Ask the recipient bank in advance; sometimes the fee is waived for higher-tier accounts.
Confusing the "rate at conversion" with the "rate at booking". If you book a conversion today for execution tomorrow, the rate that applies is generally the rate at execution, not the rate you saw at booking. Only a forward contract locks the rate in advance.

Section 11Checklist and FAQ

Snowbird FX hygiene checklist

Bookmark the Bank of Canada daily exchange rate lookup tool (bankofcanada.ca/rates/exchange/daily-exchange-rates-lookup).
For each conversion, record: trade date, CAD amount, bank rate applied, BoC rate for the same date.
Compute the spread percent on the first three conversions to establish a baseline.
If spread is consistently above 2 percent on amounts above USD 10,000, evaluate one of the alternative channels (USD account, FX broker, Norbert's Gambit).
Open a USD-denominated chequing account at your Canadian bank if you have not already.
Identify one or two no-foreign-transaction-fee credit cards for day-to-day Florida spending (avoiding the 2.5 percent per-transaction markup).
For real estate transactions, plan wire timing two to three business days ahead of the funding deadline.
Confirm with the title company what amount must arrive in the escrow account (separate from what you send).

FAQ

Why does my bank statement show a different USD amount than my online banking confirmation?

The two often capture the conversion at slightly different times. The statement is the authoritative number; the online confirmation may have been an estimate based on an indicative rate. If the discrepancy is more than a few cents per hundred dollars, ask customer service for the precise execution rate.

Does the Bank of Canada rate include any markup?

No. The BoC rate is computed from aggregated price quotes from financial institutions. It is a neutral reference, not a retail rate. You cannot transact at the BoC rate as a retail customer.

What if my bank applies a "preferred client" rate, is that closer to wholesale?

Tiered relationships at Big 6 banks (private banking, business banking, large balance holders) sometimes carry tighter spreads. The savings can be material on large conversions, but it is rare to see retail private clients quoted within 0.5 percent of BoC on wire conversions. Always measure.

Are the Big 6 bank online currency converters showing the rate I will actually get?

The published online converter tools (TD currency converter, RBC FX calculator, etc.) typically show a representative rate that includes the bank's standard retail spread. The rate at actual execution may differ slightly because the markets moved between when you checked and when you executed. The order of magnitude, however, is reliable for a quick estimate.

If I open a USD account at a Canadian bank, is the money insured the same way?

Yes. Canada Deposit Insurance Corporation (CDIC) coverage applies to USD deposits at member institutions on the same terms as CAD deposits, with the coverage limit denominated in CAD (CAD 100,000 per insured category, per member institution as of the date of this guide). CDIC publishes its current limits at cdic.ca.

Can I just transfer USD between my Canadian USD account and a U.S. bank account at no spread?

Once funds are in your Canadian USD account, transferring USD to a U.S. account is a USD-to-USD movement; no FX conversion occurs at that step. The wire transfer fee still applies. The FX cost was already paid on the way into the USD account.

Related guides on this site

FX brokers: Wise, OFX, and Knightsbridge FX (operational walkthrough and trade-offs).
Norbert's Gambit through Questrade (step-by-step procedure for the brokerage-account technique).
USD credit cards for Canadians (the spend-side companion to the USD account setup).
Repatriating funds to Canada after a real estate sale (the reverse-direction conversion).

Channel	Where the cost hides
Bank retail FX	The spread over the wholesale rate, rarely itemized
Reference (Bank of Canada)	The published daily rate this manual prices everything against
Alternatives (gambit, specialists)	Commissions visible upfront; compare on the ALL-IN landed amount

The real cost of bank FX conversion vs the spot rate.

How much does my bank really charge me to convert CAD to USD?

Acronyms and key terms used in this guide