Cross Border Guide: Moving your Money from the U.S. to Canada
- Vikki Brown
- 5 days ago
- 5 min read
Moving your life across the border is a monumental task, and the financial logistics can be one of the biggest headaches. Whether you’re a snowbird, a digital nomad, or a permanent relocator, the goal is to keep as much of your money as possible during the transition.
Here is a guide on how to navigate the reporting, the banking, and the best ways to move and convert your funds.
Using a Canadian Bank with a U.S. Presence
Large institutions like TD (TD Bank N.A. in the US and TD Canada Trust in Canada) or RBC Royal Bank and RBC Bank (U.S.) offer specialized cross-border accounts.
How it works:
You open a USD account in the U.S. and a USD account in Canada. You can then view both your U.S. and Canadian accounts in one online banking dashboard and move money between them quickly and easily.
Fees:
While there is generally no fee for making the transfer, there will be monthly account fees charged by the banks (for example TD’s borderless account fee is currently $4.95 USD/month). There is the potential to have these waived with a minimum balance held in the account(s).
Exchange Rates:
The fastest and simplest method to convert USD into CAD is by transferring the funds into your CAD account through your online portal. However, banks typically do not provide competitive rates. Expect a markup of 2.5% - 3.5% over the mid-market rate. For instance, if you convert $10,000 USD to CAD with a mid-market rate of 1.37, the conversion rate would be between 1.335 and 1.345, resulting in $13,350 - $13,450 CAD being deposited into your Canadian account.
Daily Limits:
You will find there is a daily limit for how much you can transfer between your accounts. Currently TD is $5,000 USD and RBC is $25,000 USD per day.
Wire Transfers:
You can call or go into a branch for assistance with larger transfers by wire. This will come with a wire transfer fee starting at around $50 USD.
Verdict:
Great for small, frequent moves of your money north of the border. Particularly handy for those that are still earning U.S. sourced employment or pension income.
Currency Specialists: Wise, OFX, and Knightsbridge
When you need to move larger sums, specialized FX (Foreign Exchange) providers are almost always cheaper than banks.
Wise (Best for Speed & Transparency)
How it works: Uses local bank accounts to avoid wire fees. You send USD to your U.S. Wise account. From your Wise USD account you send it to your Wise CAD bank account. Wise performs the currency conversion to CAD.
Pros: Wise converts by using the mid-market exchange rate with no markup.
Fees & Exchange Rates: Fees are calculated as a percentage of the transfer amount. At the time of writing this post, the fee was 0.91% for transfers below $10,000 and 0.87% for transfers above $10,000. For instance, converting $10,000 USD at a mid-market rate of 1.37 incurs a fee of 0.87%, amounting to $87 USD, leading to a deposit of $13,613 CAD into your Canadian bank account.
Limits: Generally $50,000 up to $1,000,000 per transfer depending on where you send the money from and how you get it there.
If you can get Wise to “pull” the transfer from your US bank account you are looking at a limit of $50,000 USD. Watch out for rolling day limits too.
If you send a wire transfer from the US bank to a US Wise account (considered a domestic wire) your limit is up to $1,000,000 USD. Don’t forget your bank will charge those wire transfer fees!
OFX (Best for Professional Support)
How it works: Similar to Knightsbridge but with a more robust global platform.
Pros: 24/7 phone support and no flat transfer fees on most amounts.
Fees & Exchange Rates: Fee of $15 CAD for transfers under $10,000 and exchange rates will have a markup above the mid-market rate.
Limits: Best for $10,000+.
Knightsbridge FX (Best for Large Sums)
How it works: A Canadian-based currency broker. You call or book online to lock in a rate.
Pros: They specifically guarantee to beat the bank's exchange rate. Usually the "gold standard" for five-figure transfers or larger.
Cons: Not an instant "app" experience; involves a bit more manual setup (EFT/Wire).
Verdict:
Wise is ideal for regular transfers such as those earning U.S. consulting income or social security as you can elect to have these payments deposited directly into your U.S. Wise account. OFX is best for complex moves or those that want someone to hold their hand while making large transfers. Knightsbridge is a good choice for once-in-a-lifetime moves, such as the proceeds from a U.S. home sale or inheritance.
Norbert’s Gambit
If you have a brokerage account (like Questrade or TD Direct Investing) and aren't in a rush, you may be able to use Norbert's Gambit. This is a brilliant cost-saving exchange method however, it is recommended for U.S. tax filers to discuss with their cross border tax professional first as it could cause PFIC reporting issues.
This involves:
Cost: Just the price of two trades (usually $10–$20 total), regardless of whether you are moving $1,000 or $100,000. It is the absolute cheapest way to exchange currency, though it takes 3–5 business days.
Compliance
Moving money north of the border requires attention to disclosure compliance for U.S. tax filers. The IRS has strict disclosure rules for U.S. tax filers holding assets in a foreign country.
Cash
If you are transporting over $10,000 CAD (or its equivalent) across the border, you must report it to the Canada Border Services Agency (CBSA) and U.S. Customs and Border Protection (CBP). Carrying this amount is not illegal, but failing to declare it is.
Reporting to the IRS
If you are a U.S. citizen or Green Card holder, you are taxed on your worldwide income regardless of where you live.
FBAR (FinCEN Form 114): If the aggregate value of your foreign (Canadian) accounts exceeds $10,000 USD at any point during the calendar year, you must file an FBAR.
FATCA (Form 8938): If you live in Canada and your foreign (non US) assets exceed certain thresholds (e.g., $200,000 for single filers at year-end), you must report them with your US tax return.
Reporting to the CRA (For Canadian Residents)
When you move your assets to Canada, there will likely be a period where you are a Canadian resident but still maintain bank and investment accounts in the U.S.
T1135 (Foreign Income Verification Statement): If you own "specified foreign property" (including U.S. bank accounts or stocks) with a total cost of more than $100,000 CAD, you must file this form annually.
Ultimately, moving your money across the border requires intention. The right approach will depend on how much you’re transferring, how often you’ll need to move funds, and whether U.S. tax filing is part of your reality. With a little planning, you can keep more of your money working for you — exactly where it belongs.