Canada’s biggest trade partner is the United States of America, so it’s no surprise that a huge number of Canadian companies work with clients and suppliers across the border.
It also comes as no surprise that the number of Canadians working remotely or freelancing for companies in the U.S is growing all the time.
As a result, a common issue faced by both Canadian businesses and individuals is finding the best way of converting US Dollars into Canadian Dollars – without losing large chunks of their income.
And that’s where we want to help you. In this blog, we will point you towards the cheapest and easiest way of converting your USD income to CAD.
By default, Canadian businesses and individuals both look to their banks to do their currency conversion, but this isn’t always the best idea for your balance.
Almost all banks and financial institutions will markup the price of a currency so that they can profit. This means that the rates you see on boards in banks are never that day’s true Foreign Exchange market ones.
Typically, Canadian banks charge a markup of anywhere from 3% to 6% on USD. When exchanging large sums of money, these charges can really mount up and cost you a lot of money. This is especially likely when doing it frequently.
For example: Scotiabank is one of Canada’s most popular banks, according to their website at 4:21pm on March 04 2019, the client sells 1.29 USD to buy 1 CAD. At this time, the live FX rate valued 1 CAD to be worth 1.33 USD.
This means that exchanging 2000 USD with Scotiabank would result in the client receiving 2580 CAD. If they were to avail of the live FX rate, they would be receiving 2660 CAD. That’s a difference of 80 CAD!
And poor exchange rates won’t be the only cost you’ll have to bare when converting your USD income to CAD. Chances are your bank will subject you to receiving fees.
Most banks will charge you a receiving fee if you are sent funds from another account, especially if those funds are being sent from another country and via wire transfer.
For example, one of Canada’s most popular banks, CIBC, charges 15 CAD on incoming wire transfers. Adding up the cost of the above examples, you lose out on 90 CAD.
90 CAD to receive the 2000 USD you are owed? That’s simply not fair!
Here at REMITR, we help Canadians dealing with USD to get exactly what they’re owed.
Thanks to our newest service – REMITR Collect – the days of worrying about poor conversion rates and crazy receiving fees are finally over!
When you register for REMITR Collect, you will receive a free REMITR Global Account.
When raising an invoice with your US clients, you provide them with your personal REMITR Global Account number.
Your REMITR Global Account allows you to receive payments in US Dollars, and the best part? Receiving payments into your account is completely free! Yes, free.
Users have the ability to withdraw funds from their Global Account to their local bank account in Canadian dollars at any time they wish.
We use the best live exchange rate, which means that we don’t charge a high markup percentage like the banks do, and that you get paid exactly what you’re owed – in your own currency.
Funds are transferred to your local bank account within 1 business day of submitting your online withdrawal request – so there’s never any waiting around to access your money.
With REMITR Collect, there is no maintenance fees and no monthly minimums to pay. Our no strings attached approach ensures that you won’t ever end up with any nasty surprises.
You only pay a small flat fee of 5 US Dollars to withdraw funds. You can withdraw in Canadian Dollars into your own local bank account here in Canada.
REMITR is accessible 24/7. This eliminates the excuse of customers using distance and time zones as an excuse to delay payments.
Our platform is a 100% secure, FINTRAC-registered service that employs state of the art technology to protect your payments and financial information.
Sick and tired of paying hefty receiving fees? Of waiting around to access your money? If you’re in need of a payment acquiring service you can really trust, get in touch with REMITR today.