How buy and sell exchange rates work

When you compare currency prices, the first thing to understand is how buy and sell rates work. Every exchange desk shows two numbers for the same currency: a rate at which it buys that currency from you, and a rate at which it sells it to you. They are never identical, and the difference between them is not a hidden trick — it is how the service is priced.

Two rates, one currency

When you exchange currency, there is a rate at which the branch buys a currency from you and a rate at which it sells the same currency to you. Which side applies depends only on the direction of your transaction: bringing US dollars in means the buy rate, taking US dollars out means the sell rate. That is why quoting "the" dollar rate without saying the direction is rarely a complete answer.

What the spread means

The difference between the buy and sell rate is the spread. It reflects the cost and risk of holding physical currency: banknotes must be ordered, stored, insured, and sometimes shipped back when demand changes. A clear branch states the spread rather than hiding it. As a customer, the spread is also your simplest comparison tool — the narrower it is, the closer both sides sit to the market midpoint.

Where buy and sell rates come from

Posted buy and sell rates start from the wholesale market price that moves through the day, published as a reference by the Bank of Canada. Each branch then adjusts for its own costs, its stock of each currency, and local demand. This is why rates differ between providers and why a rate you saw in the morning may change by the afternoon. Before visiting, check the current reference on our rates page — then confirm the final number at the counter for your exact amount and direction.

Before you decide

• How to use this guide: this is general information — match it to your own currency, amount, and timing, then confirm the details with the branch.
• Details worth checking: read amounts and currency codes from original documents, and confirm anything time-sensitive, like a rate, for your specific request.
• Keep a record: keep receipts and rate notes; for next steps, contact the Newmarket branch.