Fact - There is an expense to converting

Although you don't lose money when you "convert" Canadian loonies into US dollars, there is an expense that you need to be aware of. Financial institutions "shade" the spot rate of the Canada/US exchange rate and use that as another source of profits for their shareholders. The way you can tell is to compare the exchange rate online or in the newspaper with those posted at your local bank or at the "currency exchange carts" at the airport. The difference can be significant. In some cases, using your Canadian credit card in the US for US dollar purchases can be even worse. By "shading" the exchange rate on your purchases in the US , the credit card companies make a fortune and you have little or no idea. Next time you get your credit card statement, look at the rate they exchanged your purchase at and then go online and find the historical rate . . . you may grimace.

Here are some things you can do to reduce the expense when converting your loonies into US dollars:

	Request your currency exchange provider to give you the "spot" rate or as close to it as possible. The spot rate is what the market is paying at that moment and the currency exchange does not shade the rate at all.
	Accumulate your loonies together and convert in one lump sum, rather than several smaller transactions.
	Avoid using your Canadian dollar credit card, find a credit card that issues US dollar cards instead so you can control the exchange rate better, rather than take the prevailing rate the credit card company decides for that day.
	Avoid using your bank unless you have a good relationship with your banker, then ask them to give you the "spot" rate.
	Avoid the currency exchange "carts" in the airports or be sure to compare their rates to a discount currency broker or the spot rate in the newspaper or online whenever possible.
	Avoid converting cash, as it is more expensive. Consider travelers cheques, bank drafts, money orders or personal cheques instead.
	Make sure you do comparative shopping, particularly if you are exchanging large sums.
	If you have an account at a Canadian brokerage firm, they may offer you competitive exchange rates as part of their customer service to you, particularly if you already have a US dollar account.
	US casinos typically provide excellent exchange rates in hopes you will leave some of it in their machines or at their tables.
	Don't wait till you get to the US . . . most US banks will not convert your Canadian loonies.
	Leave sufficient US dollars in the US to meet your currency needs each year.