No matter what your reason for sending money to Canada, it can be expensive and
sometimes complicated. So in this video we're going to show you how to send
money to Canada and give you some tips on how to make it easier and more
affordable.
Let's get straight into what you need to know.
Okay so obviously you
need to know the name of the person you're paying and the name on their
account but there are also three numbers you need when you're sending money to
Canada. A transit number a financial institution number and their account
number. The person you're paying should be able to provide all of these to you
so that you can get started on your transfer.
Right so you know what we need
but what about how much it's going to cost? Well this really depends on a few
factors like the exchange rate, the fees for making the transfer and the fees for
receiving it.
Exchange rates can be confusing for three reasons. Number one,
they change all the time. Number two, every company offers different exchange
rates and number three you have to be careful of how it's being quoted to you.
If you see the exchange rate quoted like this, you want the rate to be high and if
you see the rate quoted like this you want it to be low. In both cases it makes
the transfer cheaper for you. There are a few different fees you need to look out
for when you're sending money to Canada. The first one is a transfer fee. Not all
companies charge this but if they do it's generally fixed or a percentage of
what you're transferring. The next one is in the exchange rate which makes it
harder to spot. This is why different companies offer different rates and why
you generally can't get the rate you see on Google or XE when you make a transfer.
Finally you need to look out for the receiving fee this can be charged to the
person you're paying. We had a look at major Canadian banks and found that this
was generally somewhere between 15 and 20 Canadian dollars so you need to be
careful of what this fee is and work out which one of you is going to cover it.
You can use your bank to send money to Canada and if we're honest this is one
of the easiest ways to do it. The problem is that it can also be expensive with
poor exchange rates and high fees. This is where money transfer companies come
in. These are companies that specialize specifically in transferring money from
one country to another. They will also charge fees but generally
they're less than what you'd find at the bank.
There are some important factors
you need to consider when you're sending money to Canada; how much you're sending,
where you're sending the money from and how quickly you need it processed. If
you're transferring less than $10,000 to Canada you want to look for a company
that doesn't have a minimum transfer amount and doesn't charge high fees. Our
pick for smaller transfers accompanies like TransferWise, WorldRemit or XE.
If you are transferring more than $10,000 you want to look at the exchange
rate you're being offered. OFX and WorldFirst are both good here but they
have minimum transfer sizes so make sure you're checking what they are before you
sign up. Finally, if you're making a large transfer like $50,000 or more you really
want a company that offers good rates. TorFX is our pick here. They have
excellent customer service if you want help with the transfer and good rates
when you're transferring a high amount.
Once you've decided on who you'd like to use you need to go to their website to
set up an account. Depending on the company you might need photo ID and
proof of address. Once your account is verified you'll be able to fill in the
details of the person you're paying. This is where you'll need the transit,
institution and account numbers we discussed earlier. Finally, you'll need to
pay for your transfer. Depending on who you're using this usually includes bank
transfer, debit card or credit card. Once it's paid for the transfer will
generally be received in two to five business days.
Finding the best option for you really comes down to comparing. With so many
factors to take into consideration there is no one company that's always the best.
And because comparing can get complicated using a comparison table can
be really handy. We have a comparison tool that compares multiple companies
for you from how much you're sending and the currencies you're sending between
will show you the total cost of multiple companies ranked from cheapest to most
expensive. From there you can read company reviews, learn how to make the transfer
and go to their site when you're ready.
Okay, we might have overloaded you with information at this point but sending
money to Canada doesn't have to be complicated. Just remember that while
your bank is convenient it can also be one of the most expensive ways to do it.
And no matter how you're making your transfer make yourself aware of all the
rates and fees involved. The easiest way to find the best option for you is to
use a comparison table like ours which compares large secure and reputable
money transfer companies in one place.