Key takeaways
- Small volumes: keep it simple, but check your bank’s margin.
- Growing volumes: add a specialist and hold foreign currency.
- Large volumes: negotiate pricing and set a hedging policy.
- Review your set-up every year.
What to use at each stage
| Yearly FX volume | Typical set-up |
|---|---|
| Under C$100,000 | Bank or a low-cost specialist; check your margin |
| C$100,000 – C$1 million | Specialist provider plus a multi-currency account |
| Over C$1 million | Negotiated pricing, a hedging policy, and payments connected to your accounting system |
Signs it’s time to change
- You’re paying foreign suppliers or staff every month.
- FX costs are a visible line in your accounts.
- A currency move has hit a quarter’s margin.
- Finance spends hours on manual payments and reconciliation.
A worked example
A company growing from C$500,000 to C$2 million of yearly conversions at a 3% bank margin would pay about C$60,000 a year above market. At 0.5% with a specialist, that’s about C$10,000.
Common mistakes
- Keeping start-up pricing as volumes grow.
- Adding providers without a plan for who pays what.
- Waiting for a bad currency move before setting a hedging policy.
Providers that can help
Compare these providers, then request a free, no-obligation quote.
Low-cost payments as you start
From 0.48% Conversion fee
Hedging and pricing for larger volumes
Forwards & options Hedging
FAQs
When should a business switch from its bank to an FX specialist?
Often once foreign-currency payments become regular, for example monthly supplier or contractor payments, because margin savings grow with volume.
What is a hedging policy?
A short written rule setting how much of your expected currency exposure you protect, which tools you use and how often you review it.
Do larger businesses get better FX pricing?
Generally yes. Providers often lower margins for higher and more regular volumes, so ask for volume pricing as you grow.
Sources: Bank of Canada daily exchange rates; FX providers’ published pricing.