How To Move Money To Canada & Other FAQs About Sending Money Internationally

Traditional banks were once the go-to solution for international money transfers, but there are other, specialized options like Wise, XE, and CurrencyFair, that have changed the game. These purpose-built platforms offer competitive rates, faster transfers, and greater transparency, making them a popular choice for newcomers like you.

Key Factors to Consider When Transferring Money

Before initiating a transfer, consider these crucial factors:

1. Exchange Rates: The exchange rate determines how much money your recipient receives. Some providers inflate exchange rates to include hidden fees, while FX platforms like Wise and XE use the real mid-market rate.
2. Transfer Fees: Fees can vary significantly. Banks sometimes charge higher fixed and percentage-based fees (though we’re seeing more banks offering free international transfers to entice newcomers like you), while dedicated platforms have lower, transparent fees and often offer better rates on the transfer itself. This is why a ‘free’ transfer won’t always mean that you get the highest number of dollars in your account.  
3. Transfer Speed: How soon you need the money will influence your choice. Some methods take days, while others process transactions in hours.
4. Security: Ensure the provider you choose is trusted and uses robust security measures to protect your funds and personal data.
5. Ease of Use: Platforms with mobile apps and user-friendly interfaces can simplify the process, especially for first-time users.

How to Move Money to Canada: Step-by-Step

Here’s a step-by-step guide to transferring your money to Canada efficiently:

1. Research Providers: Compare banks, FX platforms, and other services to find one that fits your needs. Consider fees, rates, and reviews.
2. Set Up an Account: Create an account with your chosen provider. You may need identification documents, proof of address, and your Canadian bank account details.
3. Calculate Costs: Use the provider’s calculator to estimate fees and exchange rates. Many platforms allow you to see exactly how much the recipient will receive.
4. Verify Payment Methods: Confirm the payment methods accepted, such as bank transfers, credit/debit cards, or digital wallets.
5. Transfer Funds: Follow the instructions to send your money. Double-check all details to avoid errors.
6. Track Your Transfer: Most services provide tracking options so you can monitor your transfer’s progress.

FAQ: Common Questions About Money Transfers in Canada

What’s the cheapest way to send money to Canada?

FX platforms like Wise and XE are often cheaper than banks due to lower fees and better exchange rates. They provide transparent pricing and information about how long it will take (to the hour), allowing you to see exactly what you’ll pay and when you will receive the money.

How long do money transfers to Canada take?

The time it takes for a money transfer to Canada from abroad depends on the method and provider you use. Here’s a breakdown of the common transfer options and their estimated timelines:

• FX Platforms: Typically a few hours to one business day.
• Banks: Two to five business days or more, depending on the destination.
• Paypal and other digital wallets: instant to two business days. 
• Cash pickup services (Western Union, MoneyGram): instant to a few hours.

• Cheque or bank drafts: over a week to multiple weeks, due to mailing delays and clearance times at Canadian banks

Why is my money transfer to Canada taking so long? 

The length of time the transfer takes varies depending on the platform you choose to make the transfer, as well as the following factors: 

• Destination Country and Currency: Transfers involving less common currencies or certain regions may take longer.
• Payment Method: Transfers initiated via credit or debit card are faster than bank-to-bank transfers.
• Verification Processes: Large transfers or those flagged for additional security checks may face delays.
• Time Zones and Bank Hours: Transfers initiated late in the day may roll over to the next business day. Canada also has 

Factors Affecting Transfer Times

There are a range of factors that influence how long the transfer from your home country to Canada will take, including: 

• Destination Country and Currency: Transfers involving less common currencies or certain regions may take longer.
• Payment Method: Transfers initiated via credit or debit card are faster than bank-to-bank transfers.
• Verification Processes: Large transfers or those flagged for additional security checks may face delays.
• Time Zones and Bank Hours: Transfers initiated late in the day may roll over to the next business day.

Can I transfer money before opening a Canadian bank account?

Yes, you can send money to a temporary account or use a multi-currency digital wallet like a CAD account through FX companies, including Wise. 

Here’s what Wise says about what digital wallets are and how they work: 

“A digital wallet is an app which lives on your smartphone and lets you hold your credit and debit cards in virtual form, digital tickets, loyalty cards, vouchers and more.

With a digital wallet you can make contactless payments with your smartphone, watch or fitness tracker, tap to pay on public transport, pull up an entry ticket for an attraction, or collect loyalty points for example.

It’s secure, convenient – and it means you can leave home without worrying about remembering your wallet, too.”

Once you open a Canadian bank account after you arrive, you can transfer the funds there from your digital wallet – and this process is usually very fast.

Why shouldn’t I transfer money to friends or family so it’s there when I arrive?

We recommend not transferring money to a friend or family member in Canada before you arrive, especially not if you’re sending more than $10,000. 

At $10,000, you will trigger Canada’s anti-money laundering reporting requirements. So it could require your friend or family member to complete paperwork showing where the money came from and why they have it. That’s no fun for them or for you! 

As for why it’s a bad idea for sums less than $10,000, there’s no financial protections for you if you do this. And while we always hope our loved ones will do the right thing, you never know what’s going on behind the surface – and financial issues can rear their heads in ugly ways when it comes to relationships. Protect yourself and your hard earned cash and get a digital wallet instead.  

Are there fees for receiving money in Canada?

Some Canadian banks charge fees for incoming international wire transfers. Check with your bank to confirm their policies.

Is my money safe with online FX platforms?

Reputable platforms like Wise, XE, and CurrencyFair are regulated by financial authorities and use advanced encryption to protect transactions.

Can I send money home from Canada?

Absolutely. FX platforms support two-way transfers, making it easy to send money back to your home country when needed.

What currencies can I transfer to and from Canada?

Most FX platforms support major currencies like USD, EUR, GBP, and AUD, along with many others. Wise, for example, supports over 50 currencies.

Do I need to declare money transfers to the Canadian government?

Transfers over CAD 10,000 must be declared under Canadian law to comply with anti-money laundering regulations. 

In fact, if you’re bringing or sending over $10,000 CAD into Canada in cash, monetary instruments (like checks or money orders), or electronic transfers, you must report it to the Canada Border Services Agency (CBSA). Failure to do so can result in fines, penalties, or confiscation of the funds.

Additionally, banks or money transfer services may ask you to provide documentation about the source of the funds and their intended use. Having clear records, such as pay stubs, sale agreements, or proof of inheritance, will streamline the process.

Which FX Platform is the best for Canada?

There are a host of FX platforms available in Canada. We trust and have partnered with the below platforms and recommend them to you. Many of our team members have and use accounts with these platforms, too. 

Wise (formerly TransferWise)

Wise offers low fees, real mid-market exchange rates, and transfers completed in minutes. It’s perfect for newcomers who need a multi-currency account or a borderless debit card. Your first transfer with Wise is often free up to a certain amount.

XE Money Transfer

XE provides competitive exchange rates and a flat fee of around CAD 4 per transfer. It’s a reliable choice for major currency corridors and supports transfers via a user-friendly app.

CurrencyFair

CurrencyFair’s peer-to-peer model allows users to set their own exchange rates, often beating traditional providers. Their flat fees make them a budget-friendly option for frequent transfers.

Western Union

Western Union is ideal for cash pickups and offers extensive global coverage. While it’s convenient, the fees can be higher than FX platforms.

In Conclusion

Transferring money to Canada doesn’t have to be stressful or expensive. By choosing the right tools and staying informed, you can save money, avoid delays, and ensure your funds arrive securely. FX platforms like Wise and XE are excellent choices for newcomers, offering better rates, lower fees, and faster transfers than traditional banks.

If you’re new to Canada, taking the time to research your options and plan your transfers strategically can help you make the most of your hard-earned money as you settle into your new home.