The cheapest way to convert CAD to USD in Canada
Last updated
Short answer: for amounts above roughly $5,000 to $10,000 that are already in (or headed to) a brokerage account, Norbert's Gambit is usually the cheapest way to convert Canadian dollars to U.S. dollars. For smaller amounts, or when you need the money quickly or in a bank account, Wise is usually cheapest. Your bank's standard exchange rate is almost always the most expensive option.
What you'd get: five ways compared
U.S. dollars received for each amount of Canadian dollars, using the October 24, 2026 mid-market rate of 0.71406 USD per CAD (where a perfect, fee-free conversion would give $7,140.60 for $10,000):
| Method | $1,000 CAD | $10,000 CAD | $50,000 CAD | Basis |
|---|---|---|---|---|
| Norbert's Gambit ($0 commissions + $9.95 journaling) | $706.39 | $7,127.69 | $35,666.87 | Measured |
| Norbert's Gambit ($9.99 per trade) | $696.37 | $7,117.67 | $35,656.85 | Measured |
| Wise | $710.65 | $7,106.48 | $35,542.93 | Measured |
| Currency dealer at 0.5% (e.g. Knightsbridge FX) | Likely below minimum | $7,104.90 | $35,524.49 | Estimate |
| Wealthsimple USD account | ≤ $703.35 | ≤ $7,069.19 | ≤ $35,524.49 | Upper bound |
| Big bank at a 2.5% markup | $696.21 | $6,962.09 | $34,810.42 | Estimate |
On $10,000, the difference between the cheapest and most expensive options is about $165 USD. On $50,000 it's over $850.
Measured: DLR and DLR.U closing prices from October 23, 2026 and live Wise quotes from October 24, the same data the calculator uses. Estimate: the provider's advertised or typical fee applied to the mid-market rate; your actual rate will differ. Upper bound: Wealthsimple's published fee only, before the spread built into its exchange rate, so you'd receive somewhat less.
The options, from most to least expensive
1. Your bank's exchange rate
Converting at your bank is the easiest option and usually the costliest. Banks don't charge a visible fee; the cost is built into the rate, and big-bank markups are commonly estimated at 2% to 3.5% above the mid-market rate. On $10,000 that's roughly $140 to $250 USD. To see your bank's real cost, compare its quoted rate with the mid-market rate at the same moment.
2. Your broker's currency conversion
Most Canadian brokers convert currency for you, either automatically when you buy a U.S. stock or on request. It's convenient, but there's typically a markup built into the rate. Wealthsimple, for example, publishes its fee for converting between CAD and USD accounts: 1.5% under $10,000, 1.0% from $10,000 to $24,999.99, 0.5% from $25,000 to $99,999.99, and 0% from $100,000, applied on top of an exchange rate that already includes a spread (Wealthsimple fee schedule). Other brokers don't all publish their markup, so check your broker's rate against the mid-market rate.
3. A currency dealer such as Knightsbridge FX
Dealers specialize in larger conversions. Knightsbridge FX advertises rates of about half a percent. You send Canadian dollars by bank transfer, and they send U.S. dollars to your bank account. Rates depend on the amount, there are minimums, and you'll need to get a quote, so it's most useful for larger, one-off conversions that need to end up in a bank account rather than a brokerage.
4. Wise
Wise converts at the mid-market rate and charges a visible fee, about 0.48% for CAD to USD in our quotes, with volume discounts on large amounts. Conversions between balances usually happen within minutes, and you can send the U.S. dollars to a bank account. For amounts under a few thousand dollars it's often the cheapest option overall, and it's the fastest. The Norbert's Gambit vs Wise page compares the two in detail.
5. Norbert's Gambit
You buy DLR in Canadian dollars, have your broker journal it to DLR.U, and sell it for U.S. dollars. The costs are mostly fixed (commissions, a journaling fee at some brokers, and a small bid-ask spread), so at $10,000 the total was about 0.18% to 0.32%, and around 0.1% at $50,000. The trade-off is two trades, a request to your broker and a few business days. It's the cheapest option for larger amounts that are staying in your brokerage account. Learn how in the complete guide, or see the CAD to USD calculator.
Which one should you use?
| Your situation | Usually cheapest |
|---|---|
| Under a few thousand dollars | Wise |
| $5,000+ to invest in U.S. stocks or ETFs | Norbert's Gambit |
| Large amount that needs to land in a U.S. bank account | Wise or a currency dealer; compare quotes |
| You need it today | Wise |
| $100,000+ at Wealthsimple | Its 0% fee tier, but compare the rate with Norbert's Gambit |
Tips for any method
- Always compare against the mid-market rate. It's the fairest benchmark and shows the real cost of each option.
- Check for fees on getting money in and out, not just the conversion itself.
- Avoid automatic conversions when you buy U.S. stocks with Canadian dollars; that's where broker markups add up unnoticed.
- If you'll keep buying U.S. investments, convert once in a larger amount and hold U.S. dollars in a USD account.
Frequently asked questions
What does Reddit recommend for converting CAD to USD?
On Canadian personal finance forums, the usual recommendation is Norbert's Gambit for larger amounts at a brokerage and Wise for smaller amounts or bank-to-bank transfers, which matches the numbers above.
Is there a CAD to USD calculator that includes fees?
Yes. The Norbert's Gambit Calculator uses live DLR prices and your broker's fees, and can pull a live Wise quote for the same amount so you can compare.
Is Norbert's Gambit cheaper than Knightsbridge FX?
For larger amounts at a low-fee broker, usually yes: about 0.1% to 0.3% compared with an advertised rate around 0.5%. Knightsbridge can make more sense when the money needs to end up in a bank account rather than a brokerage.