Money Transfer to/from Canada
How can you get your money safely to your bank account in Canada or send money to your loved ones at your home country?
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Making an international money transfer can be quite an onerous process, as banks typically offer their own inflated exchange rates, and banks in both countries adding their own charges. We recommend taking a look at other money transfer service providers and taking the time to compare all your options before making a decision.
Let's see what are the options available to you if you are wishing to send money from your home country to your new bank account in Canada, or if you simply want to send money to your home country. |
Banks
There are a lot of cons with transferring money through your bank. This is why we do not recommend this route. Just to state a few:
There are other cheaper options available.
- Banks are usually more costly, with less competitive exchange rates. They will usually have fixed wire fees per transfer ($30-40) but to make a thorough comparison with competitors, you should compare how much currency you'll end up with, as their exchange rate are higher than competitors,
- The receiving bank may charge additional fees,
- Banks require more information,
- Bank transfers may take longer,
- Some banks will not transfer money to some foreign banks.
There are other cheaper options available.
Money Transfer Operators
Money Transfer Operators are companies that only offer money transfer services between countries. They do not generally require you to open an account and are usually easy to find, from post offices to pharmacies. You will need to fill in forms and provide identification to send your money. Some of them offer online money transfer services and are also developing mobile phone transfers. The most known ones are Western Union and MoneyGram, etc. WorldRemit is also considered a Money Transfer Operator, but only operates online.
Peer-to-Peer Money Transfer Service Providers
Peer-to-peer has added a new type of company to the world of foreign currency exchange by allowing senders and receivers of different currencies to set their own rates and trade directly with each other, cutting out the banks’ fees and exchange rate margins. Both CurrencyFair and Transferwise are examples of peer-to-peer money transfer service providers.
Which One is the Best?
Out of the money transfer services cited, there is no definitive answer, it depends on your needs:
- Cheapest money transfer service with the lowest rate and fees: WorldRemit and TransferWise offer very interesting rates and fees.
- Fastest money transfer service: WorldRemit, Western Union and MoneyGram can transfer funds overseas within minutes.
- Lowest minimum amount you are allowed to send: WorldRemit and TransferWise allows you to transfer $1.
- Cash-only transfer: WorldRemit, Western Union and MoneyGram can transfer money without needing a bank account.
- Available transfer destinations: WorldRemit, Western Union and Banks can send money pretty much anywhere in the world. TransferWise is becoming a serious contender with 25+ countries, including Morocco and South Africa.
Click here to learn more about the Canadian Banking System.
