Working in US Family in Canada

[JohnRivers]

Hey all. I am a Canadian working in the US while my family resides in Canada. As a result I need to exchange US dollars to Canadian dollars so my family can eat! My question is why do Banks charge such high fees on foreign exchange? what am I paying for? are there alternatives?? I sometimes end up paying significant sums of money on each transaction that I could otherwise use on gifts for my children or even dinner! any help???

[Randomsaver]

Banks charge a lot. My bank for example charges $40 per wire on top of the exchange rate they earn from me. It doesn't matter if I'm sending also $40.

Western union to me or similar is the better alternative. Also, if you can really trust the recipient to budget, you can send quarterly instead of monthly. Four fees vs 12 fees.

[snafu]

John, have wife open a USD account at one of the banks or Credit Unions having first determined their exchange fee, explaining this will be a regular transaction. She can also check with various downtown changers since airports are most expensive of all money traders.

The most cost effective is likely to use a CC that functions in USA dollars...she'll be charged Loonies here and you'll pay in USD.