Sending Money Internationally from Canada: Best Options
By WelcomeAide Team
Sending Money Internationally from Canada: A Newcomer's Guide (2026)
Sending money back home is one of the most common financial activities for newcomers in Canada. Whether you're supporting family, paying off debts, or transferring your own savings, understanding the available options will help you save hundreds or even thousands of dollars in fees and get better exchange rates.
Why the Method Matters
The cost of sending money internationally varies dramatically depending on which service you use. The two main costs are:
• Transfer fees — The upfront charge for making the transfer (can range from $0 to $50+)
• Exchange rate markup — The hidden cost. Services often offer an exchange rate that's worse than the mid-market rate, and the difference is their profit. This can add 1%–5% to your total cost
For a $1,000 transfer, the total cost (fees + exchange rate markup) can range from $5 to $80+ depending on the service. Over a year of monthly remittances, that difference adds up to hundreds of dollars.
Bank Wire Transfers
How They Work
Canadian banks (RBC, TD, Scotiabank, BMO, CIBC) offer international wire transfers through the SWIFT network. You provide the recipient's bank details (account number, SWIFT/BIC code, bank address), and the money is sent electronically between banks.
Costs
• Transfer fee: $15–$50 per transfer (varies by bank)
• Exchange rate markup: Typically 1.5%–3.5% above the mid-market rate
• Intermediary bank fees: Additional $15–$30 may be deducted in transit
• Recipient bank fees: The receiving bank may charge a fee to receive the wire
Bank wires are secure and reliable but are usually the most expensive option for smaller amounts. They're better suited for large transfers ($5,000+) where the flat fee is a smaller percentage of the total.
Transfer Time
Bank wires typically take 1–5 business days, depending on the destination country and intermediary banks involved.
Online Money Transfer Services
Wise (formerly TransferWise)
Wise is widely considered the gold standard for international transfers. It uses the real mid-market exchange rate and charges a transparent, low fee (typically 0.5%–1.5% of the transfer amount).
• Pros: Best exchange rates, transparent pricing, fast transfers (usually 1–2 business days), multi-currency account available
• Cons: Transfer limits may apply, requires online banking or card for funding
• Best for: Regular remittances, medium-to-large amounts, tech-savvy users
Remitly
Remitly specializes in sending money to developing countries and offers various delivery options including bank deposit, mobile money, and cash pickup.
• Pros: Fast delivery options (express in minutes), multiple payout methods, good coverage in Asia, Africa, and Latin America
• Cons: Exchange rate markup can be higher than Wise, fees vary by delivery speed
• Best for: Sending to countries where recipients prefer cash pickup or mobile money
WorldRemit
Similar to Remitly, WorldRemit offers transfers to 130+ countries with various payout options.
• Pros: Wide country coverage, mobile wallet and airtime top-up options
• Cons: Exchange rates are less competitive than Wise on some corridors
• Best for: Sending to countries in Africa and Southeast Asia
Western Union
Western Union has the widest physical network, with agent locations in over 200 countries. It's been the go-to for remittances for decades.
• Pros: Cash pickup available worldwide, no bank account needed for recipient, available at many Canadian locations (pharmacies, convenience stores)
• Cons: Higher fees and worse exchange rates compared to online services, in-person transfers are more expensive than online
• Best for: Recipients without bank accounts, urgent cash pickups in remote areas
MoneyGram
Similar to Western Union with extensive physical locations worldwide.
• Pros: Wide availability, cash pickup option
• Cons: Similar cost structure to Western Union—not the cheapest option
• Best for: Cash pickup when Western Union isn't available locally
PayPal/Xoom
Xoom (owned by PayPal) offers international transfers with various delivery options.
• Pros: Integration with PayPal, fast delivery
• Cons: Exchange rate markup can be significant
Interac e-Transfer International
Some Canadian banks now support Interac e-Transfer for international sending to select countries. This is convenient if you already use e-Transfer domestically, though the country availability is still limited. Check with your bank for availability and fees.
Cryptocurrency Transfers
Some newcomers use cryptocurrency (Bitcoin, stablecoins like USDT or USDC) to send money internationally. While this can offer very low fees and fast transfers, it requires both sender and receiver to have crypto wallets and understand the technology. Exchange rate volatility is a risk with non-stablecoin cryptocurrencies. This option is not regulated in the same way as traditional remittance services.
How to Choose the Best Service
Compare Before You Send
Always compare multiple services before making a transfer. The best service depends on:
• Destination country — Some services offer better rates to specific countries
• Amount — Some services are cheaper for small amounts, others for large
• Speed — How urgently does the recipient need the money?
• Delivery method — Bank deposit, cash pickup, mobile money, or mobile wallet?
• Funding method — Some charge more for credit card funding vs. bank transfer
Watch the Exchange Rate
Check the mid-market rate on Google or XE.com before making a transfer. Compare what the service offers to the mid-market rate. A difference of more than 1% means you're paying a significant hidden fee.
Tax Implications
Sending money out of Canada for personal reasons (supporting family, gifts) is not taxable. However, the Canada Revenue Agency (CRA) requires you to report international electronic funds transfers (EFTs) of $10,000 or more. Financial institutions automatically report these transfers to FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
This reporting is standard and doesn't mean you're doing anything wrong—it's a routine anti-money-laundering requirement. Splitting transfers to avoid the $10,000 threshold ("structuring") is actually illegal, so always transfer the full amount you intend to send.
Tips for Newcomers
• Set up recurring transfers if you send money regularly—many services offer this with locked-in rates
• Use bank transfers to fund your remittance (not credit cards) to avoid cash advance fees
• Keep records of all international transfers for your tax files
• Beware of scams — Only use established, regulated services. The Financial Consumer Agency of Canada (FCAC) provides consumer protection information
• Consider opening a multi-currency account (Wise, for example) if you frequently deal with multiple currencies
Choosing the right remittance service can save you significant money over time. For help managing your Canadian bank accounts and finances, read our guide on credit unions vs. banks in Canada.
The key is to compare your options, understand the total cost (not just the advertised fee), and choose the service that best matches your needs in terms of destination, speed, and delivery method.
Navigating Exchange Rates and Hidden Fees
When sending money internationally, the stated transfer fee is only part of the cost. The exchange rate offered by your chosen service can significantly impact how much your recipient ultimately receives. Providers often apply a markup to the interbank (or mid-market) exchange rate – the rate banks use to trade with each other. This means you might be getting a less favourable rate than what you see on a quick online search, effectively paying a hidden fee. Always compare the exchange rates and total fees across several platforms before initiating a transfer. Some services might offer a seemingly low fee but compensate with a weaker exchange rate, while others might have a higher fee but a more competitive rate. For newcomers, understanding these nuances is crucial for managing your finances. You can explore different financial institutions and their international transfer services with our Banking Comparison tool, and better plan your budget using our Cost of Living Calculator.Protecting Yourself: Avoiding Scams and Fraud
Unfortunately, newcomers can sometimes be targeted by scams designed to trick them into sending money. It's vital to be vigilant and protect your hard-earned funds. Common scams include emergency scams (someone pretending to be a family member in distress), lottery or prize scams (asking for fees to release winnings), and fake job or rental offers that demand upfront payments via wire transfer. Never send money to someone you don't know personally, or to anyone asking for money in suspicious circumstances. Always verify urgent requests directly with the person involved, using a method you trust. If something feels too good to be true, it probably is. If you suspect you've been targeted by a scam, report it to the Canadian Anti-Fraud Centre immediately. You can find more information and report incidents at the official government website: Canadian Anti-Fraud Centre. For general guidance and support as you settle in Canada, our AI Navigator and Settlement Checklist are valuable resources.Understanding Tax Implications of International Transfers
For most personal international money transfers from Canada, the act of sending money itself is not a taxable event. You are simply moving your existing funds. However, there are nuances to consider, especially concerning large sums or if the transfer relates to income. Financial institutions are required to report certain large transactions to FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) to combat money laundering and terrorist financing, but this does not automatically mean your transfer is taxable. If you are sending money as a gift, it is generally not taxable for the sender or the recipient in Canada. However, if you are receiving money from abroad, it's important to distinguish between gifts and income. Gifts received from outside Canada are typically not taxable, but any foreign income (e.g., from investments, pensions, or work done abroad) must be reported to the Canada Revenue Agency (CRA) and may be subject to Canadian income tax. For detailed information on your tax obligations, consult the Canada Revenue Agency website or use our comprehensive Tax GuideRelated Resources
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- Credit Unions vs. Banks in Canada: What Newcomers Should
- Canada's Big Five Banks Compared: Which Is Best for
- Tenant Insurance in Canada: Why Every Newcomer Renter
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