Currencies can be converted using an online currency exchange service or manually. Before you can do anything though, you must first know what the exchange rate is for the currencies you are exchanging. This can be done by simply looking it up online or by checking through your bank.
The rates your bank will charge you differ from the ones you see online because banks earn small profits on exchanges, whereas online rates are the same as those quoted between banks.
To show how different types of exchanges work, here are five different ways you can exchange Canadian dollars for Mexican pesos.
Most banks and credit unions these days sell foreign currency. This is especially so if they are international banks. While some banks offer delivery of foreign currency to your doorstep, there are additional fees in that route that may not be worth it. Instead, we would suggest visiting your local branch in person and making a currency exchange that way.
This option allows you to get access to a bank’s exchange rates from Canadian to Mexican, which tend to be good. But keep in mind that you may run into additional fees for the transaction.
If you are already in Mexico, you may be able to use your debit card at a local ATM. This varies from bank to bank and may include additional fees and limited exchange rates.
It’s common for airports to have currency exchange counters where travellers can go to get different types of currencies, and there are often even shops close to airports or in large marketplaces where these transactions can occur as well.
But be wary. As easy as it is to stop by these counters and make exchanges, they often charge bad rates. Why? Because airports, in particular, know that you’ll need the currency immediately for buses, taxis, food, tips, and hotels, and so you’ll buy what you can, whatever the rate may be. This allows them to make big profits off of you. Currency exchange shops may offer a better rate than airports, but not by much.
These options are ideal if you couldn’t exchange money before your trip, or if you need currency immediately, but they are best to avoid if you can.
If you go to Mexico often enough that you frequently need Mexican currency, it might be worthwhile to open a bank account there. That way you can wait until you get into the country to get your funds.
This option provides the comfort of not having to travel abroad with two different sets of currencies, but it introduces a time lag, as you may not be able to set up a foreign bank account quickly.
If you’re wanting to exchange your Canadian dollars for pesos because you’re about to set off on a trip to Mexico, the travel aspect of your situation makes it possible for you to get Traveler’s Checks.
Traveller’s checks are paper documents that can be used like standard paper checks and cash. They can be replaced quickly if lost or stolen, and they are traditionally used to get cash in local currencies to pay for things.
This option allows for a payment method that is exclusive to you but it is also not universally accepted everywhere you may go so you’ll have to be careful.
There are many different online platforms and companies that offer currency exchange. But because there are so many, this option requires research. Some platforms have bad rates or hidden costs. Others are limited in the currencies they exchange.
For example, Remitbee offers online currency exchange for Canadian to U.S. dollars, but their strength involving the Mexican peso comes from their online money transfer.
This avenue of currency transaction allows user in Canada to send their money abroad to family, friends, or other recipients in Mexico at great rates and with no hidden fees. All that’s required is that both recipient and sender have bank accounts. Users can send money to Mexico easily.
If you are planning a trip to Mexico, and trust someone with a Mexican bank account, you can take advantage of Remitbee’s high CAD to MXN exchange rate and send your money to them so that you can get the cash upon your arrival.
Travelling abroad often requires you to have funds in the local currency. It then becomes important to find the best deal to exchange your currency, and this article hopefully helped you find the avenue that suits your situation the best.
Furthermore, if you’d like to send money abroad instead of exchanging currencies, you can do so quickly and easily through online money transfer services like Remitbee.
Use code SEND15