CAD to USD Bank Fees: RBC vs TD vs BMO (2026)
Ask most Canadians what their bank charges to convert CAD to USD and they'll tell you "nothing" or "just a small fee." They're not lying — they just don't know. Canadian banks have perfected the art of hiding currency conversion costs in plain sight, burying them inside the exchange rate itself where the average account holder never looks.
Here's what's actually happening: every time you convert Canadian dollars to US dollars at your bank, your bank does not give you the real exchange rate — the one you see on Google or XE.com. They give you a rate that's a few percentage points worse, and they pocket the difference. No line item on your statement. No separate fee disclosed. Just a worse rate, framed as "the rate today."
In this article, I've done the legwork on all four major Canadian banks — RBC, TD, BMO, and Scotiabank — to show you exactly what they charge, how they hide it, and what you could be saving by using a currency specialist like Wise instead.
How Banks Hide CAD to USD Fees: The Spread Explained
The mid-market rate (also called the interbank rate) is the "true" exchange rate between CAD and USD at any given moment. It's the rate banks use when they trade currencies with each other on the wholesale market. It's also the rate Google shows when you type "CAD to USD."
When you go to convert money at your bank, you don't get this rate. Your bank sets their own "retail" exchange rate, which is typically 2.5–3.5% worse than mid-market. On a $10,000 CAD conversion, if the mid-market rate is 1 CAD = 0.72 USD:
- At mid-market, $10,000 CAD = $7,200 USD
- At your bank's rate (2.5% spread), $10,000 CAD ≈ $6,930 USD
- At your bank's rate (3.5% spread), $10,000 CAD ≈ $6,948 USD (the math: you get 0.6948 instead of 0.72)
Wait — does the bank get less spread on a 3.5% markup? Let me clarify: a 2.5% spread means the bank's buy rate is 2.5% below mid-market. So 0.72 × (1 – 0.025) = 0.702. On $10,000 CAD, that gives you $7,020 USD instead of $7,200. The bank captures $180 USD.
A 3.5% spread gives you 0.72 × (1 – 0.035) = 0.6948. On $10,000 CAD: $6,948 USD. The bank captures $252 USD.
That's the invisible tax you pay every single time you exchange currency at a Canadian bank. Let's look at what each big bank actually does.
RBC: CAD to USD Exchange Rate and Fees
Royal Bank of Canada is Canada's largest bank by market cap, and its foreign exchange rates reflect that dominant position — which is to say, they're not great for the customer.
RBC sets what they call an "indicative rate" for retail CAD to USD conversions. In 2026, this rate is typically 2.5–3.0% worse than mid-market for consumer accounts. For wealth management or priority banking clients with high balances, RBC does offer slightly better rates, but you'd need very large volumes and a direct conversation with your advisor to negotiate them.
Additional fees at RBC:
- Converting CAD to USD within your RBC USD account: No explicit conversion fee — just the spread.
- Wire transfer from RBC to a US bank account: $13.50 CAD per outgoing wire (plus the spread).
- USD draft (bank draft in US dollars): $7.50 CAD plus the spread.
Real example at RBC:
If mid-market is 0.720, RBC might offer you 0.698–0.702. On $10,000 CAD, that's $6,980–$7,020 USD. Compared to Wise's approximately $7,157 USD on the same amount, you're losing $137–$177 USD (about $190–$247 CAD) just in spread — plus any wire fee on top.
TD Bank: CAD to USD Exchange Rate and Fees
TD Bank is Canada's second-largest bank and operates on both sides of the border (TD Bank, NA in the US). You might think this makes them better for CAD to USD conversions. It doesn't, particularly.
TD's retail exchange rate for CAD to USD is typically in the 2.5–3.0% range above mid-market, consistent with RBC. TD does have one potential advantage: if you have both a Canadian TD account and a US TD Bank account, you can sometimes transfer between them at marginally better rates than a regular wire — but you'd need to verify this with TD directly, as the rates aren't publicly disclosed in detail.
Additional fees at TD:
- Converting CAD to USD within a TD USD account: No explicit fee — just the spread.
- Outgoing international wire transfer: $30 CAD per wire.
- US dollar money order: $7.50 CAD plus the spread.
Real example at TD:
At a 3.0% spread with mid-market at 0.720, TD would give you approximately 0.6984 per CAD. On $10,000 CAD: $6,984 USD. Wire fee adds another $30 CAD (about $21 USD effective). Total cost versus Wise: roughly $193–$215 USD ($270–$300 CAD).
BMO: CAD to USD Exchange Rate and Fees
Bank of Montreal's foreign exchange rates for retail customers are broadly similar to RBC and TD. BMO also offers a "USD Personal Account" that you can fund by converting CAD, but the conversion itself happens at BMO's retail rate.
Where BMO sometimes differentiates is in their BMO Harris cross-border banking service, which is designed for Canadians with connections to the US (particularly in the Great Lakes region). BMO Harris clients may get slightly better FX rates on CAD to USD, but again, the details require a direct conversation and aren't publicly posted.
Additional fees at BMO:
- CAD to USD conversion within a BMO USD account: No explicit fee — just the spread (typically 2.5–3.0%).
- Outgoing wire transfer in USD: $25–$35 CAD depending on the account type.
- Foreign currency draft: $7.50 CAD plus the spread.
Real example at BMO:
On $5,000 CAD at a 2.75% spread with mid-market at 0.720, BMO would give you approximately 0.7002 per CAD. Total USD received: $3,501. Wise would give you approximately $3,565. You lose $64 USD ($89 CAD) just on that one conversion — before any wire fees.
Scotiabank: CAD to USD Exchange Rate and Fees
Scotiabank has a notable presence in Latin America and the Caribbean, which gives them strong rates on some exotic currency pairs. For the basic CAD to USD corridor, however, they're operating in the same 2.5–3.5% spread range as their peers.
Scotiabank does offer a "USD Daily Interest Savings Account" and a "USD Chequing Account" — both of which are useful for holding US dollars. But the CAD-to-USD conversion step to fund those accounts happens at Scotiabank's retail rate.
Additional fees at Scotiabank:
- In-branch or online CAD to USD conversion: No explicit fee — just the spread.
- International wire transfer: $12.00–$25.00 CAD depending on channel (online vs. branch).
- Bank draft in USD: $8.50 CAD plus spread.
Real example at Scotiabank:
At a 3.0% spread on $10,000 CAD, Scotiabank would offer you approximately $6,984 USD. That's roughly $173 USD ($241 CAD) less than what Wise would deliver on the same transaction.
CIBC: A Brief Note
CIBC follows a similar pattern to the other Big Five banks — roughly 2.5–3.0% spread on retail CAD to USD conversions, plus wire fees of $25–$35 CAD per outgoing transfer. CIBC is also worth watching if you qualify for their CIBC Smart Banking for US dollar transactions, but most retail clients will encounter the same standard retail spread as at other banks.
Complete Comparison Table: Canadian Banks vs. Wise for CAD to USD (2026)
| Institution | Typical Spread | Wire Fee | $1,000 CAD → USD | $10,000 CAD → USD | $30,000 CAD → USD |
|---|---|---|---|---|---|
| Wise | 0% (mid-market) + ~0.5% fee | None | ~$712 | ~$7,157 | ~$21,483 |
| RBC | 2.5–3.0% | $13.50 CAD | ~$693–$700 | ~$6,984–$7,020 | ~$20,952–$21,060 |
| TD Bank | 2.5–3.0% | $30 CAD | ~$690–$700 | ~$6,984–$7,020 | ~$20,952–$21,060 |
| BMO | 2.5–3.0% | $25–$35 CAD | ~$693–$700 | ~$6,984–$7,020 | ~$20,952–$21,060 |
| Scotiabank | 2.5–3.5% | $12–$25 CAD | ~$690–$700 | ~$6,948–$7,020 | ~$20,844–$21,060 |
| CIBC | 2.5–3.0% | $25–$35 CAD | ~$693–$700 | ~$6,984–$7,020 | ~$20,952–$21,060 |
Mid-market rate assumed at 1 CAD = 0.718 USD. Wire fees are typical 2026 rates and vary by channel and account type. Always verify current rates directly with your bank.
The Real Cost Over Time: Why This Matters for Regular Converters
If you only convert CAD to USD once a year for a vacation, the bank spread costs you maybe $25–50 on a $1,500 travel budget. Annoying, but not life-changing.
But consider these scenarios where the bank's spread genuinely costs you serious money:
- Snowbirds converting $25,000–$50,000 CAD each fall before heading south: At a 3% bank spread, that's $750–$1,500 CAD in annual hidden fees. Every year. Our snowbird currency guide tackles this in detail.
- Canadian freelancers receiving USD payments and converting them monthly: At $3,000 USD/month converted back to CAD, a 3% spread costs $1,080+ CAD per year versus Wise.
- Canadian property owners in the US making monthly mortgage or HOA payments in USD: Converting $2,500 CAD per month through your bank costs roughly $900 CAD more per year than using Wise.
- Canadian businesses paying US suppliers: Even modest volumes of $100,000 CAD per year cost $2,500–$3,500 in bank spread versus $500–700 with Wise. That's real bottom-line impact.
The One Situation Where Your Bank Is Still Useful
Let's be fair: there is one legitimate use case for your bank's USD services. If you already have a USD account at RBC or TD, receiving USD wire payments into that account doesn't require a conversion — the USD arrives as USD. The bank account is useful as a holding vehicle for USD funds. The mistake is then converting those USD holdings back to CAD (or funding the account from CAD) at the bank's rate. For the conversion step itself, you should always use Wise or OFX and then send the resulting USD to your bank account if needed.
Stop Leaving Money at the Bank
Wise gives you the real exchange rate with no hidden spread. For $10,000 CAD, that's typically $140–$250 more USD in your pocket versus using RBC or TD.
Convert CAD to USD with Wise Instead →How to Tell What Rate Your Bank Is Actually Giving You
Before your next conversion, do this quick check:
- Look up the current mid-market CAD/USD rate on Google or XE.com. Write it down.
- Log into your bank's online banking and navigate to currency conversion or foreign exchange.
- Check what exchange rate your bank is offering for CAD to USD.
- Calculate the difference as a percentage: (mid-market rate − bank rate) ÷ mid-market rate × 100.
If the answer is 2–3.5%, that's completely typical for a Canadian bank. You're now seeing what was previously invisible. Whether you continue to accept it is up to you — but at least you know what you're paying.
For most Canadians doing anything over $500 CAD, the answer is to use Wise for the conversion step. For how to do that, read our full Wise review for Canadians or our guide on the best ways to convert CAD to USD in Canada.
Frequently Asked Questions
What is the exchange rate markup at Canadian banks for CAD to USD?
Major Canadian banks (RBC, TD, BMO, Scotiabank, CIBC) typically apply a 2.5–3.5% markup over the mid-market exchange rate when converting CAD to USD for retail customers. On $10,000 CAD, that translates to $250–350 USD in hidden fees embedded in the rate difference. The markup isn't listed as a fee — it's baked into the exchange rate they quote you.
Does RBC charge a fee to convert CAD to USD?
RBC doesn't charge an explicit currency conversion fee for standard account holders converting CAD to USD within their accounts. However, they do apply a 2.5–3.0% spread on the exchange rate, which is a hidden fee in practice. Additionally, if you send a wire transfer in USD to a US bank, RBC charges $13.50 CAD per outgoing wire.
Does TD Bank offer better rates for CAD to USD if I have a US TD Bank account?
TD Bank (Canada) and TD Bank, N.A. (USA) are legally separate entities, but TD does offer cross-border banking products. In some cases, clients with accounts on both sides can transfer funds at marginally better rates than a standard international wire. However, the conversion spread is still typically in the 2.5–3.0% range — nowhere near the 0.5% you'd pay with Wise. Call TD directly to ask about their current cross-border banking rates for your specific situation.
Can I negotiate a better exchange rate with my Canadian bank?
For very large amounts (typically $50,000+ CAD), you can sometimes negotiate a reduced spread by calling your bank's foreign exchange desk directly rather than using the standard online or branch rate. Wealth management clients with large relationship balances may also get preferential rates. For most retail customers doing everyday conversions, however, the standard retail spread applies and negotiation isn't typically available.
What's the cheapest alternative to Canadian banks for converting CAD to USD?
Wise is the cheapest option for most Canadians, offering the real mid-market rate plus a transparent fee of approximately 0.5% — versus the bank's 2.5–3.5% hidden spread. For large transfers over $5,000, OFX is also worth comparing. See our full comparison of the best CAD to USD methods in Canada for a complete ranking.