Our Guide To Cheaper, Faster, Better International Money Transfers To and From Canada

We’ve created this guide to highlight some common pitfalls and money mistakes newcomers make when it comes to making money transfers.

Key Takeaways

• Avoid High Fees and Poor Exchange Rates: Newcomers often lose money by relying on traditional banks for international transfers, which charge steep fees and offer unfavorable exchange rates. Researching alternatives like FX platforms can save significant amounts over time.
• Plan for Potential Delays: International transfers can take longer than expected, especially through banks. This can create financial stress when funds are needed for immediate expenses like rent. FX platforms typically offer faster transfer times, often completing transactions within hours.
• Choose Secure and Transparent Services: Not all money transfer providers are trustworthy. Scams and hidden fees are common pitfalls. Using regulated platforms with transparent pricing ensures security and clarity.
• Leverage Modern FX Platforms: Services like Wise, XE, and CurrencyFair provide competitive exchange rates, low fees, and user-friendly apps. They also offer features like multi-currency accounts, borderless debit cards, and the ability to set preferred exchange rates.
• Take Advantage of Special Offers: Many FX platforms provide incentives for newcomers, such as free transfers or cashback rewards. For example, Wise offers a free first transfer up to £3,000, and XE rewards users with a $20 gift card for their first transaction. These deals can reduce initial transfer costs significantly.

Common Pitfalls of International Money Transfers

High Transfer Fees

One of the most significant challenges is the cost of transferring money internationally. Banks and many traditional services charge steep fees, which can include fixed rates, percentages of the transfer amount, and additional charges if intermediary banks are involved. These fees add up quickly, especially for frequent transfers.

Unfavorable Exchange Rates

Exchange rates can significantly impact how much money your recipient ultimately receives. Many financial institutions use marked-up rates that differ from the mid-market rate, leading to a loss of value during the conversion process. For newcomers unfamiliar with currency exchange trends, this can result in unknowingly losing hundreds of dollars over time.

Delays in Processing

Timeliness is crucial when managing finances during a move, but international transfers are often delayed. Depending on the method used, funds might take days or even weeks to arrive. Delays can create stress, especially if you’re relying on the money for rent, utilities, or immediate expenses.

Security Concerns

Not all money transfer services are created equal. Some lack robust security protocols, putting your funds and personal information at risk. Stories of scams and fraudulent services make this a critical concern, particularly for newcomers unfamiliar with the market.

Transparency Issues

A lack of transparency in fee structures and exchange rates leaves many feeling unsure about the true cost of their transfer. Without clear information, it’s easy to overpay or be caught off guard by unexpected deductions, reducing trust in the process.

Money Mistakes Newcomers Make When Transferring Funds To & From Canada

Using Traditional Bank Transfers Without Comparing Options

Many newcomers default to using their home bank for international transfers without researching alternatives. Banks often charge higher fees and offer less competitive exchange rates than specialized money transfer services. Failing to compare options can result in paying significantly more than necessary.

Ignoring Exchange Rates

Exchange rates between countries regularly change, but providers offer different exchange rates too. It’s important to shop around to make sure you’re getting the best currency conversion exchange rate when you make your transfer.

Not Accounting for Conversion and Transfer Delays

Failing to account for potential delays can create financial bottlenecks. For instance, transferring funds right before rent or other critical payments are due could result in late fees or strained relationships with landlords.

Overlooking Local Banking Costs

After transferring money, many newcomers are surprised by additional fees charged by Canadian banks to receive international transfers (especially wire tranfers). Ignoring these costs during budgeting can create shortfalls in your finances.

Falling for Scams or Fraudulent Services

Desperation for quick and cheap transfers can lead newcomers to fall for scams. Fraudulent services may offer tempting rates but fail to deliver funds or compromise personal information. Rushing to transfer without verifying the legitimacy of a provider is a common, and heartbreaking, error.

Not Setting a Budget for Transfers

Some newcomers make transfers sporadically without calculating the cumulative cost. This approach often leads to overspending on fees and unfavorable exchange rates. A better approach is to plan transfers strategically and look for services with minimal costs.

How To Get Faster, Cheaper and Better International Money Transfers

For people new to Canada, every dollar counts. FX platforms make it easier to send funds home for family support or bring savings into Canada to cover initial living expenses. Faster access to money, coupled with reduced costs, helps ease the financial stress of moving and adapting to a new country.

Popular options include Wise (formerly TransferWise), XE Money Transfer, and Currency Fair, all of which cater to individuals seeking better money transfer solutions.

Depending on the provider, these dedicated money transfer options offer:

Faster Transfers

• Real-Time Transactions: Many FX platforms use digital networks that facilitate near-instant transfers, reducing waiting times for funds to arrive. Often, the transfer can take just hours.
• Streamlined Processes: Unlike banks, which often involve multiple intermediaries, FX platforms work directly with local payment systems, cutting down on delays.

Cheaper Transfers

• Lower Fees: FX platforms typically charge smaller fixed fees or even waive fees for larger transfers, making them more cost-effective than banks.
• Better Exchange Rates: They offer more competitive exchange rates by cutting out the middleman, saving newcomers money on currency conversions.
• Transparent Pricing: Many FX services provide upfront information about fees and exchange rates, avoiding hidden costs.

Better Overall Service

• Multi-Currency Wallets: Some platforms let users hold funds in multiple currencies, giving them flexibility to transfer money when rates are favorable.
• Convenient Apps: Mobile apps allow users to track, manage, and execute transfers from anywhere, simplifying the process for busy newcomers.
• Customer Support: Platforms often provide multilingual support, which is beneficial for individuals who may not be fluent in English or French.
• Regulatory Compliance: Reputable platforms comply with international and Canadian regulations, ensuring security and peace of mind.

Wise (formerly TransferWise)

For newcomers to Canada, Wise (formerly TransferWise) is a game-changer for international money transfers. With over 13 million global users, Wise offers a user-friendly app that makes sending money to and from Canada fast, transparent, and affordable. Say goodbye to hidden fees and bad exchange rates—Wise uses the real mid-market rate with a low variable fee averaging just 0.4% to 0.6% of your transfer amount. Transfers are completed in minutes to a few hours, depending on the destination, so you can access your funds when you need them most.

Fully operational in Canada and supporting over 50 currencies, Wise is perfect for newcomers juggling finances between countries. You can open a multi-currency account, hold and convert money in multiple currencies, and even get a borderless debit card. Plus, with multilingual support and a stellar 9.5/10 Trustpilot rating from 30,000 reviews, you can trust Wise to keep your money secure. As a special offer for Moving2Canada customers, your first transfer is free up to £3,000 (or equivalent).

Here’s a screenshot from Wise showing what the currency transfer looks like for us to send 1000 CAD to Australia.

For reference, writer Stephanie Ford checked her personal bank for its rates for this same transfer ($1,000 CAD to Australia), and it would have been $13.00 more expensive to transfer through her bank vs Wise.

Start saving today with Wise—the smarter, faster way to transfer money internationally.

Check with your bank to see if they charge for domestic transfers. It will vary from bank to bank.

XE

For newcomers to Canada, XE is a trusted partner for seamless, secure, and affordable international money transfers. With its peer-to-peer exchange model, XE offers competitive rates and a low flat fee of around CAD 4 per transfer, making it an excellent choice for managing finances across borders. Supporting 22 major currencies and handling over €300 million in exchanges monthly, XE ensures that your transfers are both cost-effective and reliable.

Available in Canada, XE allows newcomers to send and receive money internationally with ease. Their user-friendly mobile app lets you manage transfers on the go, while features like multi-currency accounts and the ability to set your own exchange rates provide extra flexibility. Most transfers are completed in 1–2 business days, ensuring you or your family back home don’t have to wait long. With personalized support through email and phone, XE stands out as a dependable choice for those navigating life in a new country.

As a special offer for Moving2Canada users, XE rewards your first transfer with a gift card of up to $20—the more you send, the more you earn! Register and receive the gift card after you make a transfer.

Learn more about this exclusive offer on the XE website.

CurrencyFair

CurrencyFair is another cheap and easy way to arrange an international money transfer to Canada.

• CurrencyFair is offering the first 10 transfers for free for Moving2Canada customers so you get to sample their service with zero transaction costs. Hurrah!
• Their homepage has a live Canadian currency exchange calculator where you can find the latest rates.
• CAD transfers into Canada’s major banks (see full list) no longer incur receiving bank charges. To avoid delays, complete transfers before 11:30AM (UK time) to ensure same-day transfers.
• For transferring money to Canada from other locations, there is a flat fee of $4 per transfer.
• For transferring funds from Canada to other locations, there may be a domestic wire fee applied by your bank.
• CurrencyFair is safe and is regulated.

Always check with your local Canadian bank to see if they charge a fee for a domestic wire as it varies from bank to bank and depends on your relationship with the bank.

Western Union is a third-party money transfer option providing competitive rates and low transfer fees. Third party companies like Western Union allow you to transfer funds from your account in one country to or from your account in another country.

Learn more about Western Union’s services here.

When using Paypal to make international money transfers to Canada, set up two Paypal accounts — one to your domestic bank and one to your Canadian bank. Then you can transfer money from Canada, and between them then for free; you just need to have two email accounts.

While this is a relatively simple process, be sure to check the rates you’re being charged. A little research goes a long way towards maximizing the affordability of your international money transfers.

Other banks

If it’s your first time arranging a transfer, you may be surprised to learn that the banking systems in North America are different from elsewhere, so the information you’ll be asked for will be different.

For example, a European bank may request details like BIC and IBAN numbers, however these details don’t exist in Canada, where accounts have transit codes, swift numbers, and ABA numbers. It can be somewhat confusing figuring out what information you should put where.

We strongly recommend you double-check everything with your bank before you complete the transfer. If there is space in the transfer form to leave notes or additional information, leave detailed information here on anything you’re unsure of.

Note also that for large transfers, the receiving bank may attempt to call you to confirm that you’re expecting to receive the amount.

If you’ve set up the bank account before you got your local cell phone plan, they may not have a number to call you on, and this can cause delays in receiving funds. If the transfer is taking longer than expected, don’t be afraid to visit a bank branch and find out what’s going on.

• Read our guide for banking in Canada.
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