Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Best Days Of The Week To Exchange Currency: USD And CAD

By Johnathan HollandForexFeb 19, 2018 05:38PM ET
www.investing.com/analysis/best-days-of-the-week-to-exchange-currency-usd-and-cad-200291856
Best Days Of The Week To Exchange Currency: USD And CAD
By Johnathan Holland   |  Feb 19, 2018 05:38PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Best Days of the Week to Exchange Currency: USD and CAD
Written by: Johnathan Holland

Statistics in our article have shown that there are better days of the week to exchange currency to increase savings for your bottom line by as much as $13,405.84 each year!

We analyzed 10 Years Worth of Trading Data to Determine a Formula for Saving Money.

The Idea of the Case:

Many of the businesses we service make payments on the 1st business day of each month.

We wanted to find out if there were better times to make these payments based on the daily exchange rate fluctuations.

All data is based on a business that exchanges $100,000 each month.


The following two strategies prove to be very lucrative with CAD & USD currency pairs:

Strategy #1- Exchange all of your currency on the 1st business day of the month.

For CAD to USD you can save up to $13,405.84 each year.

"I have CAD and need to exchange to USD each month to make a payment(s)…"

It is proven if you wait until the first business day of each month and exchange your CAD to USD you will save $13,834.89 every year.

The worst thing you can do is evenly average out your exchanges over the last 5 business days of the month (red on the above chart)!

Strategy #2 - Dollar Cost Averaging (5 Days):

Exchange an even amount of currency over the last 5 Business Days of the month.

With USD to CAD you can save $8,483.52 annually!

"I have USD revenue and I need to exchange to CAD each month, but I never know when to exchange it…"

If this is you, then you are not alone. 76.3% of Canadian exports are sent to the US and these companies are paid in USD.

The best bang for your buck is to evenly average out your exchanges over the last 5 business days of the month, with savings of $8,137.92 annually.

Don’t follow the same footsteps as your CAD to USD exchanges, because if you exchange all your funds on the 1st business day of the month you have chosen the worst option.

What is the best way to execute?

CAD to USD is very straight forward. Just exchange on the 1st of each month, but what about USD to CAD?

Let’s analyze our options:

A) Use your Banks online platform (and get killed with the foreign exchange cost)
B) Use a foreign exchange company that has been around a while and call the trader every business day for the last 5 business days of the month.
C) Use a fintech foreign exchange business where everything is online (with NO commissioned trader on the other end) and have this trade automated.
Read more about Fintech Companies Here.

Let’s look into these options a bit more deeply:

A) Using your bank to exchange USD to CAD is fairly easy to do, but they are unapologetically expensive.

You would typically go to your online banking and the bank will gladly let you click a button allowing you to move your USD over to your CAD account.

But, they will gladly take 3% of all your money and for what? The computer system processed it. There is no need for such high fees only that they can get away with it.

B) At least with a foreign exchange company you get some savings.

Depending on the volume you’re doing they might charge 1.5% - 2.5% instead of the 3% a bank might charge.

And with the best USD to CAD strategy you need to call the trader for 5 days in a row AND make sure she/he isn’t trying to rip you off since they are never transparent to the actual fees. They prefer to give you an ‘exchange rate’, which is a fancy way of hiding the true cost of the transaction.

Remember they are directly commissioned on your trade. They want more!

C. There are two types of fintechs to consider:

1) Will make it easy to go online to place the order, but you will have to place it each day (similar to your online bank option) for the 5 days and remember to do this.

2) At least one fintech in Canada allows you to “opt-in” to this 5 day strategy and the company automatically executes this strategy for you.

In both scenarios, the company charges you the same low percentage cost on the foreign exchange and you would save $134,152.48 over 10 years by doing so.

We hope this helps the business owners out there that are always looking for new hacks to better themselves and their businesses.

Best Days Of The Week To Exchange Currency: USD And CAD
 

Related Articles

Kenny Fisher
U.S. Dollar Pushes Yen Above 114 By Kenny Fisher - Jan 25, 2022

After years of deflation, Japanese inflation indicators continue to point upwards. The latest gauge to confirm the upswing was BoJ core inflation for December, which rose from 0.8%...

Best Days Of The Week To Exchange Currency: USD And CAD

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email