Wise vs RBC: Real USD→CAD Fees & Cheapest Way to Convert (2025)
Freelancers paid in US dollars, snowbirds wiring retirement money, Shopify sellers depositing USD — converting greenbacks into loonies is daily business for Canadians. Currency conversion can feel like a hidden tax, so let’s put Wise and RBC side by side with fresh numbers and zero fluff.
Why Compare Wise and RBC?
Banks such as RBC build profit into their exchange rate (a spread). Wise shows the mid-market rate and takes a small upfront fee instead. Which route actually lands more CAD in your account?
Live USD→CAD Rate (today)
The number above is the mid-market rate — the real interbank rate you also see on XE or Google. RBC’s consumer rate is typically 2-4 % worse; Wise sticks to mid-market and charges a separate fee.
At a glance: total cost on CA$1 000 / 5 000 / 10 000
Example based on a mid-market rate of 1 USD = 1,32 CAD (5 Aug 2025) and a 2,7 % RBC spread. RBC’s online International Money Transfer carries no fixed fee; a branch SWIFT wire still costs about CA$15.
| Amount | RBC (2.7 % spread) | Wise (0.6 % fee) |
|---|---|---|
| US $1 000 | CA $1 285.20 | CA $1 313.00 |
| US $5 000 | CA $6 426.00 | CA $6 565.00 |
| US $10 000 | CA $12 852.00 | CA $13 130.00 |
On $10 000 USD, Wise leaves roughly CA $278 more in your pocket than RBC’s online rate. (Always refresh the rate table before publishing.)
Where the extra cost comes from
RBC foreign-exchange spread
RBC shows you a rate about 2-4 % worse than the Bank of Canada mid-market quote. With today’s 1.32 base rate, RBC offers ~1.285 CAD per USD (2.7 % spread). No explicit fee online, but the hidden spread still stings; an in-branch wire adds ~CA$15.
Wise transparent fee
Wise converts at the mid-market rate and charges ~0.43-0.65 % plus a small fixed fee. On 10 000 USD today, total fee ≈ CA$78, shown before you press Send. No hidden markup.
Step-by-step demo: US$5 000
- Wise → enter $5 000, see rate 1.32, fee CA$33 (0.6 %). Expected arrival: CA$6 565 in 30-60 min.
- RBC online IMT → rate hidden until final screen; with 2.7 % spread you receive ~CA$6 426 instantly between RBC accounts.
- Difference → Wise nets ~CA$139 more on this amount.
Pros and cons
| RBC | Wise | |
|---|---|---|
| Fee transparency | Hidden in rate | Shown upfront |
| Speed | Instant RBC-to-RBC | 30-60 min |
| Regulation | CDIC insured | FINTRAC regulated (no CDIC) |
FAQ
Is Wise safe for Canadians?
Yes. Wise Payments Canada Inc. is registered with FINTRAC (MSB M15193392) and holds client funds in segregated accounts at major banks.
Can I avoid RBC FX fees?
You can open an RBC USD account, keep funds in USD, then move them via Wise at the mid-market rate before converting to CAD. It’s a bit of extra handling but saves hundreds on larger transfers.
Verdict
For most everyday conversions, Wise wins on cost and clarity, saving ≈ CA $278 per US$10 000 versus RBC’s consumer spread. RBC only makes sense if you need instant, same-bank transfers and don’t mind paying the premium.
Need today’s USD→CAD? Check our USD→CAD live rate updated every 30 min or embed the widget on your site.