Currency exchange: don’t leave money on the table

The retail‑bank mistake

When you convert, say, Canadian dollars, euros, or reais to USD through your everyday bank, you typically get a marked‑up exchange rate plus transfer fees. On a small transfer that’s an annoyance. On a $2,000,000 purchase in Port Royal or Pelican Bay, a difference of even 1–2% in the rate is $20,000–$40,000 — money that simply evaporates into the spread.

The fix: a specialist FX broker

Foreign‑exchange brokers — firms like Moneycorp, Currencies Direct, Wise, and OFX — specialize in large cross‑border transfers and typically offer tighter rates and lower (or no) fees than a retail bank. For a property purchase they also let you:

• Lock your rate with a forward contract. Agree a rate today for funds you’ll need at closing weeks from now, so a currency swing between contract and closing doesn’t change your price.
• Stage USD into the U.S. escrow account. Pre‑convert and hold dollars so the funds are ready and confirmed when the closing agent needs them.
• Reduce shortfall risk. Converting in one controlled step avoids the intermediary‑bank fees and FX slippage that can leave escrow slightly short (and force a scramble wire).

Start the money early — and protect it

Two things that quietly derail closings:

• Compliance timing. Large international wires clear anti‑money‑laundering and source‑of‑funds review that can add 5–15+ business days and cannot be rushed. Be ready to document where the money came from, and start well before closing.
• Wire fraud. The single biggest closing‑table risk. Always verify wire instructions by phone using a number you already have — never trust wiring changes that arrive by email, even if they look official.

For the full buying‑from‑abroad picture, see the International Buyer’s Guide. (I’m a REALTOR®, not a currency dealer — I’ll point you to reputable FX firms and the professionals who handle the compliance side.)