Global Major Cities Guide

Overview of the official currency used in Toronto, including coins and banknotes.

Sections

1. Overview of the Canadian Dollar (CAD)

Currency Code: CAD
Symbol: $ (or C$ to distinguish it from other dollar currencies)
Denominations:
- Coins: 5 cents (nickel), 10 cents (dime), 25 cents (quarter), $1 (loonie), $2 (toonie)
- Banknotes: $5, $10, $20, $50, $100
Exchange Rate: The exchange rate for CAD fluctuates daily based on global currency markets. As of October 2023, 1 CAD is approximately 0.73 USD or 0.68 EUR, but you should check the current rate before exchanging money.

2. Currency Exchange in Toronto

Toronto, being a major financial hub, offers numerous options for exchanging foreign currency. Here are the most common methods:

a. Banks

Major Banks in Toronto: RBC (Royal Bank of Canada), TD Bank, Scotiabank, BMO (Bank of Montreal), and CIBC.
Pros: Reliable, secure, and offer competitive exchange rates.
Cons: Banks may charge a service fee (typically $5–$10 per transaction) unless you have an account with them.
Tip: Banks are generally open Monday to Friday, 9:30 AM to 5:00 PM, with some branches open on Saturdays.

b. Currency Exchange Services

Popular Locations:
- ICE Currency Exchange (found at Toronto Pearson International Airport and in downtown Toronto).
- Kantor Currency Exchange (known for competitive rates).
- Calforex Currency Exchange (locations in downtown Toronto and malls).
Pros: Often better rates than banks, especially for larger amounts.
Cons: Some services charge a commission or have hidden fees, so always ask for the "net rate" after fees.

c. ATMs

How to Use: Withdraw Canadian Dollars directly from ATMs using your debit or credit card.
Pros: Convenient and often provides a good exchange rate.
Cons: Your home bank may charge foreign transaction fees (typically 2–3%) and ATM withdrawal fees (around $3–5 per transaction).
Tip: Use ATMs affiliated with major banks to avoid additional surcharges.

d. Toronto Pearson International Airport

Currency exchange kiosks are available at the airport, but they often have less favorable rates compared to banks or downtown exchange services. Use them only for small amounts if necessary.

3. Costs and Fees to Consider

Exchange Rate Margins: Currency exchange providers often add a margin to the exchange rate, so the rate you get will be slightly worse than the market rate.
Service Fees: Banks and exchange services may charge a flat fee or a percentage of the amount exchanged.
Credit Card Foreign Transaction Fees: Most credit cards charge a 2.5–3% fee for transactions in foreign currencies unless you have a no-foreign-transaction-fee card.
ATM Fees: As mentioned, both your home bank and the ATM operator may charge fees.

4. Credit Card vs. Cash in Toronto

Toronto is a highly cashless-friendly city, and credit cards are widely accepted. Here’s a breakdown of when to use each:

a. Credit Cards

Widely Accepted: Most businesses, including restaurants, shops, taxis, and even public transit (via Presto card machines), accept credit cards.
Contactless Payments: Tap-to-pay is very common, and you can use cards or mobile wallets (e.g., Apple Pay, Google Pay).
Recommendation: Use a credit card with no foreign transaction fees to save on costs. Examples include the Chase Sapphire Preferred (US) or Scotiabank Passport Visa Infinite (Canada).

b. Cash

When to Use: Small businesses, street vendors, and some tips/gratuities may require cash.
How Much to Carry: It’s a good idea to carry around $50–$100 CAD in cash for emergencies or small purchases.
Tip: Avoid carrying large amounts of cash for safety reasons.

5. Practical and Cultural Tips for Handling Money in Toronto

a. Tipping Culture

Tipping is customary in Toronto, especially in the service industry. Here are some general guidelines:
- Restaurants: 15–20% of the bill (before tax).
- Taxis: 10–15% of the fare.
- Hotel Staff: $2–5 per bag for bellhops, $2–5 per night for housekeeping.
- Bars: $1–2 per drink or 15–20% of the total bill.

b. Taxes

Prices displayed in stores and restaurants do not include tax. In Toronto, you’ll pay:
- HST (Harmonized Sales Tax): 13% added at checkout.
- Tip: Be prepared for the final price to be higher than the sticker price.

c. Counterfeit Awareness

Canadian banknotes are made of polymer and have advanced security features, such as transparent windows and raised ink. Familiarize yourself with these features to avoid counterfeit bills.

d. Avoid Dynamic Currency Conversion (DCC)

When paying with a credit card, you may be offered the option to pay in your home currency instead of CAD. Always choose to pay in CAD, as DCC often comes with poor exchange rates and additional fees.

e. Presto Card for Public Transit

If you plan to use public transit, consider getting a Presto card. You can load it with funds using cash or a credit card, and it’s accepted on buses, streetcars, and subways.

f. Emergency Funds

Keep a backup credit card or some extra cash in case of emergencies. Toronto is a safe city, but it’s always good to be prepared.

6. Recommendations

Best for Large Amounts: Use a currency exchange service like Calforex for better rates.
Best for Convenience: Use ATMs to withdraw CAD as needed, but check your bank’s fees.
Best for Everyday Use: Rely on a no-foreign-transaction-fee credit card for most purchases.
Best for Small Purchases: Carry a small amount of cash for tips, street vendors, or small businesses.

By following these tips, you’ll be well-prepared to handle money efficiently and confidently during your time in Toronto. Let me know if you need further assistance!