Banks and exchange rates

oilycreek

oilycreek

Banned
Forum Sponsor
Can someone explain exchange rates to me?
I want to transfer $300 US in to someones bank. The bank says it will be 307 Canadian + 40 bank fee. I asked "isn't the Canadian dollar worth more" she says yes, so I ask "if i have 300 us and want it in Canadian dollars how much will I get?" she says 286 Canadian, so I ask shouldn't I pay 286 Canadian for 300 US and she says no. WTF, this is just another bank scam I think.
 
oilycreek said:
Can someone explain exchange rates to me?
I want to transfer $300 US in to someones bank. The bank says it will be 307 Canadian + 40 bank fee. I asked "isn't the Canadian dollar worth more" she says yes, so I ask "if i have 300 us and want it in Canadian dollars how much will I get?" she says 286 Canadian, so I ask shouldn't I pay 286 Canadian for 300 US and she says no. WTF, this is just another bank scam I think.
Click to expand...

The rates we see in the news, etc are FOREX rates. That's the trading worlds' standard.
Two weeks ago, you would have done better, when the buck was worth $1.07US. It's down to $1.01 now.
Banks exchange money, but charge a 'fee', which is why you are getting hosed / scammed / charged for a service / or whatever you prefer to call it.
A Casino will exchange for you also. Their rates make the bank rate look like a gift.
Your corner store will exchange it too, for a 'fee'.
 
Banks don't give you the actual exchange rate, they make money on exchanges.

If you're exchanging a lot of money you can get better rates, but you'll never get the actual exchange rate when doing that. Typically the best rates come from credit cards, in my experience their exchange rates are pretty close to the actual exchange rates.
 
oilycreek said:
Can someone explain exchange rates to me?
I want to transfer $300 US in to someones bank. The bank says it will be 307 Canadian + 40 bank fee. I asked "isn't the Canadian dollar worth more" she says yes, so I ask "if i have 300 us and want it in Canadian dollars how much will I get?" she says 286 Canadian, so I ask shouldn't I pay 286 Canadian for 300 US and she says no. WTF, this is just another bank scam I think.
Click to expand...

Anytime you're buying/selling currencies, equities, bonds, options, futures, whaterver, there is a bid price and offer price.
Banks usually have about a 3% spread on USD/CAD in retail size trades. So when you want to buy USD you are paying the asking price, in this case about 102.3 CAD, and if you're selling USD you would get the bid price, lower than par. when you see the media quoting the loonie they are most likely reported the bank of canada rate or some other reference rate, and that's not a rate you will ever receive.
 
bitzz said:
Do you think Loblaws sells bread for what they pay for it?
Click to expand...

No...but they used to sell milk for LESS than they paid for it. ;)
 
bitzz said:
Do you think Loblaws sells bread for what they pay for it?
Click to expand...
I don't sell loblaws food, and if I did it would be the same rate they would pay me. It's just typical bank BS. We have service charges up the *** with them. Then when they get in trouble they want our tax dollars to bail them out.
 
oilycreek said:
I don't sell loblaws food, and if I did it would be the same rate they would pay me. It's just typical bank BS. We have service charges up the *** with them. Then when they get in trouble they want our tax dollars to bail them out.
Click to expand...

????
our banks didn't get into any 'trouble' nor do they need our tax dollars to bail them out...

what are you talking about??
 
Fingolfin said:
????
our banks didn't get into any 'trouble' nor do they need our tax dollars to bail them out...

what are you talking about??
Click to expand...
Oh that's right, they don't get in to trouble because they are constantly ripping us off. I don't know who is worse, the banks or the oil companies. I am leaning towards the banks being the bigger thief.
 
oilycreek said:
Can someone explain exchange rates to me?
I want to transfer $300 US in to someones bank. The bank says it will be 307 Canadian + 40 bank fee. I asked "isn't the Canadian dollar worth more" she says yes, so I ask "if i have 300 us and want it in Canadian dollars how much will I get?" she says 286 Canadian, so I ask shouldn't I pay 286 Canadian for 300 US and she says no. WTF, this is just another bank scam I think.
Click to expand...

I understand the buy wholesale / sell retail bit but the $40 fee? I have never paid a handling fee. That should be part of the 3-4 % spread they work on unless it is an unusual transfer fee. Still $40 for keystrokes, a buck each?
 
$40? Are you wiring the money? A money order would be a lot cheaper. Like $6 or so.
 
No idea what Oilycreek is doing, but a lot of people wont take a money order internationally, they may take a bank draft drawn on a US bank. I'm making the assumption hes buying sumpin from the US since that's the currency he onto. Good printers have made money orders and even certified cheques a bit suspect.
Interac transfers are pretty easy and cheap, but they dont work at every bank. Western Union and stuff like that is about a $10 service charge last I used it.
Bank fees are pretty rediculous and have become a major source of income for banks, I hold stocks on two major Canadian banks that are doing ok so ....., charge away.
 
oilycreek said:
Oh that's right, they don't get in to trouble because they are constantly ripping us off. I don't know who is worse, the banks or the oil companies. I am leaning towards the banks being the bigger thief.
Click to expand...

oh i see... its just a bitchfest for you...

continue with your complaining...
if you don't want their exchange rate, use someone else... then come crawling back to the banks once you realize others exchange rates
 
crankcall said:
No idea what Oilycreek is doing, but a lot of people wont take a money order internationally, they may take a bank draft drawn on a US bank. I'm making the assumption hes buying sumpin from the US since that's the currency he onto. Good printers have made money orders and even certified cheques a bit suspect.
Interac transfers are pretty easy and cheap, but they dont work at every bank. Western Union and stuff like that is about a $10 service charge last I used it.
Bank fees are pretty rediculous and have become a major source of income for banks, I hold stocks on two major Canadian banks that are doing ok so ....., charge away.
Click to expand...
I was trying to send some money to my ex wife, she is in the USA

Fingolfin said:
oh i see... its just a bitchfest for you...

continue with your complaining...
if you don't want their exchange rate, use someone else... then come crawling back to the banks once you realize others exchange rates
Click to expand...
lmfao. I sent it Western Union, and saved about $25-$30, so why would I crawl back to the banks.

rideitlikeyoustoleit said:
OP, PM me. Girlfriend works at the bank and she gets employee rates which are slightly better. I can find out tomorrow what they are exchanging at. The bank is Scotiabank btw.
Click to expand...
Thanks for the offer,wish I read this 1 hr ago. Glad to see GTAM still has some good people on it.

To all the ones that explained it, thanks for the input, it is appreciated.
 
Last edited by a moderator:
Fingolfin said:
congrats you used western union cause you don't know how to use a bank properly...
its ok...

im here for you...

im protect you from the evil banks and oil companies
Click to expand...
actually I used western union because she needed the money right away, and the bank said it would take 3-5 days for her to get it, western is instant, so she got it right after I sent it, and saved 25-30. Seems I don't need you to protect me, you'd just cost me more money.
 
I don't know which bank you are talking about, but when I asked Desjardins (they have a branch downtown Toronto) they told me they have no fee when you're selling your money to them.
Edit: I just saw you wanted to send money...sorry, forget my reply :D
Forum Sponsor
 
You must log in or register to reply here.
Back
Top Bottom