Bank of Montreal Foreign Currency Exchange (2024)

The Bank of Montreal does offer currency exchange services that allow you to hold foreign cash. It also has a digital cross-border payment platform for making payments in foreign currencies and for saving foreign-denominated bank notes. However, these solutions are primarily designed for business clients and customers who want to risk investing their wealth in foreign currencies.

Banks use weak exchange rates and often charge commission fees. Bank of Montreal currency exchange will not be your best option for currency exchange when you need foreign currency for your travels abroad and for sending money abroad. Even for business clients, better international business solutions exist for you.

In this guide, we will show you cheaper, faster, and more user-friendly currency exchange services like Revolut for virtual travel cards, cash exchange, international money transfers, and business payments. Compare provider exchange rates with our live comparison engine 👈

Foreign Currency For Travel in 2024

If you are a retail customer who wants to hold foreign cash for your travels, then we highly recommend you avoid using Bank of Montreal currency exchange services. Large Canadian banks and credit unions like Bank of Montreal charge two very large fees, one that is transparent and another that is hidden:

• Bank Fee: This is a transparent fee that banks charge for the service. BMO does not charge a fixed fee for currency exchange services.
• Exchange Rate Margin: While some banks may waive their flat fee, all of them will levy this hidden fee. At any given moment, there is a live mid-market rate between two currencies. Bank of Montreal marks up USD to CAD exchanges by around 1.5%, as an example. Other currency pairs can get marked up by 7%.

A multi-currency account from a financial technology platform like Revolut can be a convenient way to access foreign currency digitally. Revolut offers competitive exchange rates on 30+ currencies through its smartphone app and travel debit card.

For popular currency pairs, the Revolut Rate is extremely low, sometimes pretty much the same as the real exchange rate margin (i.e., the one you see on Google). You can withdraw up to $1,200 monthly without Revolut fees, but third-party ATM fees still apply after exceeding the limit. A 2% Revolut fee per withdrawal also applies after reaching the limit.

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Go to Revolut ❯

The Revolut card provides multi-currency debit card access upon account sign-up. Standard delivery times apply. For travel needs, planning currency exchange ahead when possible allows utilizing preferable rates:

• Link bank account,
• Add desired currency amount,
• Make any exchanges,
• Conversion fees from Revolut may be very low depending on currency, limits and timing,
• Mid-market exchange rates offered up to free allowance amounts,
• Use card for overseas purchases.

Go to Revolut ❯

Monito Currency Exchange Travel Tips

The above-mentioned digital multi-currency accounts are excellent options for buying foreign currency. To make your money go as far as it can, keep these additional travel tips in mind.

1. Use Debit Cards at ATMs:
   We recommend using travel debit cards at ATMs abroad because the exchange rate used by MasterCard, Visa, and others will be stronger than Bank of Montreal currency exchange, airport kiosks, and credit unions.
2. Use Cards That Waive Foreign Transaction Fees:
   Two of the best on the market are the Revolut Multi-Currency Debit Card and the Wise Multi-Currency Debit Card.
3. Don't Use Credit Cards at ATMs:
   Feel free to rack up those credit card points at point-of-sale transactions. Just avoid using credit cards at ATMs because cash advances accrue a higher interest.
4. Pay in the Local Currency:
   If prompted by a payment machine, always choose the local currency (i.e. USD in the US, EUR in the EU, GBP in the UK, etc). Learn more about how to avoid dynamic currency conversions.
5. Avoid Airport Bureaux de Change and ATMs in Tourist Areas:
   Instead, find a trustworthy Allpoint ATM or a Global ATM Alliance bank for free withdrawals. As a general principle, withdraw cash from ATMs connected to a legit bank and pay the fixed $2 to $5 fee instead of using a machine on a street corner.

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Sending Money Abroad

You can also use Bank of Montreal foreign currency exchange to send money abroad via international wire transfers. If you have an account with BMO, then you can go to your local banker to enact a wire transfer.

Bank of Montreal Exchange Rate

Just the like the cash exchange services, Bank of Montreal will charge you two expensive fees for sending wire transfers by SWIFT:

1. Bank fee: 0;
2. Hidden exchange rate margin: Mark-ups typically range from 4%-7%.

Online money transfer services are cheaper, faster, safer, and more transparent alternatives to Bank of Montreal currency exchange online, which is why we recommend them without reservation. The ones we list below are excellent options for online payments abroad or sending remittances to family members overseas.

Go to Wise ❯

Business Payments

Big banks in Canada, like the Bank of Montreal, have access to global capital markets. You can also get credit, loans, and other debt instruments for important corporate activities. To do so, you will need to contact a BMO representative directly to get a quote for BMO's FX solutions and wealth management services.

For other business owners, Bank of Montreal might not be the best option for you.Neobanks(also called challenger banks) offer some of the easiest-to-use and lowest-cost international business bank accounts on the market today. Their accounts will help you do business with suppliers overseas and transact with your customer base abroad.

International Business Alternatives to Bank of Montreal

All the neobanks we review on Monito are fully regulated and managesegregated bank accountswith licensed partner banks. Read our full article on the best international business account solutions to learn more about these providers:

1. Revolut Business— 🏆 Best Overall for International Business Finance
2. Payoneer—Best for E-Commerce
3. Wise Business—Most Bank Account Details
4. Novo—Best All-Rounder in the USA
5. Starling Bank—Best Business Bank in the UK

Frequently Asked Questions About BMO Currency Exchange

• Will Bank of Montreal do currency exchange?

  Yes, Bank of Montreal does do foreign currency exchange but they charge commission fees as well as hidden exchange rate margins. Revolut and Wise exchange currency at the real mid-market rate and let you hold money in digital accounts on your smartphone.

• Do you have to pay for currency exchange?

  Yes. Some banks and credit unions waive their fixed commission fees for foreign currency exchange. However, they will exchange your money at a rate that is weaker than the real mid-market exchange rate, and they will keep the difference. This is a hidden fee called an exchange rate margin.

• Where can I exchange foreign currency?

  You can exchange foreign currency at a bank or credit union, which will be expensive. Or you can use digital multi-currency accounts like Revolut and Wise, which are very powerful and cheap alternatives. We also recommend using debit cards to withdraw foreign cash at ATMs while abroad.

• How much does BMO charge for foreign currency?

  Bank of Montreal will exchange your money at a rate that is around four to seven per cent weaker than the real mid-market exchange rate, and they will keep the difference. This is a hidden fee called an exchange rate margin.

• Which bank is best for currency exchange?

  The best place for currency exchange is actually neither a bank nor a credit union. Digital multi-currency accounts like the ones offered by Revolut and Wise are much cheaper alternatives for buying foreign currency. If you are searching for an international money transfer instead, online money transfer specialists like Wise are your best bet for sending money to friends and family overseas.

• Is it cheaper to exchange money at the bank?

  No, it is not cheaper. Online multi-currency accounts like Revolut and Wise are cheaper because they exchange currency at the real mid-market rate. They even hold your money digitally on your smartphone.

• Does Bank of Montreal do free currency exchange?

  No, Bank of Montreal will charge a commission fee and an exchange rate margin on your currency exchange.

• What is the Bank of Montreal exchange rate?

  Traditional banks, like Bank of Montreal, do not usually publicly disclose the exchange rates online. BMO will often exchange your money at a rate that is around four to seven per cent weaker than the real mid-market exchange rate, and they will keep the difference. This is a hidden fee called an exchange rate margin.

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