Saving on FX for US Real Estate: Marc Racette's Tips for Canadians

In this episode of the Wisdom Lifestyle Money Show, host Scott Dillingham interviews Marc Racette, CEO and co-founder of Pulse FX, a Toronto-based foreign exchange and global payments firm. Marc shares his journey starting in international business expansion in Asia, including time in Shanghai, before entering the FX industry over a decade ago. He discusses founding Pulse FX in 2024 to provide personalized FX services, emphasizing how Canadians can save significantly on currency exchanges when investing in US properties. Highlighting the convenience pitfalls of banks and online services, Marc explains how hidden markups in rates can cost thousands, and how his firm offers better rates, tools, and guidance without baking in extra fees.

Diving into market dynamics, Marc covers key factors influencing CAD/USD rates, including political shifts like Justin Trudeau's resignation on January 6, 2025, and Donald Trump's January 20, 2025, inauguration with its focus on tariffs and domestic manufacturing. He notes potential US dollar devaluation to boost exports, inflation risks from protectionist policies, and interest rate impacts—higher rates typically strengthen currencies. As of November 2025, the Bank of Canada holds its policy rate at 2.25% following an October cut, while the US Federal Reserve's target is 3.75%-4.00%. Oil prices hover around $61 per barrel, supporting CAD stability given Canada's ties to commodities. Global conflicts and safe-haven flows to USD are also flagged. Marc shares bank forecasts from late 2024 showing USD/CAD peaking near 1.45 before declining, with current rates around 1.40 (1 CAD ≈ 0.71 USD) aligning with expectations of CAD strengthening to 1.33-1.35 by end-2026 per major banks like Scotiabank and TD.

Marc outlines FX products like spot transfers, limit orders for targeting rates (e.g., 1.43), forward contracts for businesses to lock in rates up to a year ahead, and multi-currency accounts for collecting US rents without high fees. He stresses partnering with a full-service firm for transparency, lower wire costs (often free via ACH/SEPA), and compliance help for cross-border wires. Savings comparisons from January 2025 data show banks like TD at 1.48 vs. Pulse FX near 1.43-1.44, equating to 2-3% savings—potentially $5,000 on $500,000. Updated November 2025 bank rates remain higher (e.g., TD ~1.42), underscoring ongoing value. This episode equips Canadian investors with strategies to optimize FX for US real estate, blending market insights with practical tools for wealth building.