How can you get your money safely to your bank account in Canada ?
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.
Transferring your Money with Banks
There are a lot of cons to transferring money through your bank. This is why we do not recommend this route. Just to state a few:
- 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 is 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.
Money Transfer Operators
Money Transfer Operators are specialized in the transfer of money between countries. There is usually no need, for using their services, to have an opened account with them. You can find them everywhere, from banks, supermarkets to pharmacies. You only have to provide an ID document and sign a few forms to be able to transfer money through their servies. Most of them provide money transfer services through mobile phone apps. 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 Service Providers
Peer-to-peer money transfer providers are relatively new to the forex sector. In an “uberization” of foreign currency exchange, these platforms allow two people from different countries to negotiate the exchange rate by themselves. This results in cancelling out banking margins and fees, making currency exchange more affordable. The most known platforms of peer-to-peer transfer are Transferwise and CurrencyFair.
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.