While banks can help you send money from Canada to destinations all around the globe, that doesn’t mean that they should be your go-to. In comparison to international money transfer services, banks trade at the mid-market rate and then often raise the exchange rates when completing transactions for clients while also, in many cases, charging higher fees.
When it comes to transferring funds overseas, many Canadians opt instead to use an online transfer service specialized in offering safe and affordable international transfers. Since these companies trade in large volumes of currency every day, they are better-positioned to offer competitive exchange rates with lower fees than the bank.
The table below compares exchange rates and transfer costs for Canada’s five largest banks: Toronto-Dominion Bank (TD), Canadian Imperial Bank of Commerce (CIBC), Bank of Nova Scotia (Scotiabank), Bank of Montreal (BMO) and Royal Bank of Canada (RBC).
| Bank | Transfer Fee (CAD) | Exchange Rate Markup |
| Toronto-Dominion Bank (TD) | $9 – $30 | 2.64% |
| Canadian Imperial Bank of Commerce (CIBC) | Fee-free | 3.34% |
| Bank of Nova Scotia (Scotiabank) | $9 plus 1% of principal | 2.88% |
| Bank of Montreal (BMO) | $15+ | 2.65% |
| Royal Bank of Canada (RBC) | $13.50 | 2.60% |
The table below compares exchange rates and transfer costs for five of the major international money transfer services in Canada.
| Money Transfer Service | Transfer Fee (CAD) | Exchange Rate Markup |
| Wise | 1% of principal | Less than 1% |
| Canadian Forex | $15 | Less than 3% |
| TorFX | Fee-free | Less than 2% |
| Currency Solutions | Fee-free | Less than 1% |
| World First | $10 | Less than 2% |
Looking for alternatives to TorFX for sending money abroad? Check out these reputable money transfer services.
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