Find the best way to send money internationally

Looking to send an international money transfer? While you could use your bank, you’ll likely get better exchange rates, lower fees and faster transfers elsewhere. Keep reading to find out the best way to send money internationally based on your transfer needs.

What’s the cheapest way to send money internationally?

Take these steps to get the best money transfers:

1. Go with money transfer specialists. Since they tend to offer better exchange rates and fees than banks, more money will go to your recipient’s account. Cheap ways to send money internationally include RemitBee, Xe and Instarem.
2. Pay by bank transfer. Once you’ve selected a money transfer specialist, pay via bank transfer. If you choose other methods, you may pay extra fees.
3. Send to your recipient’s bank account. Other delivery methods, such as cash pickup, may come with extra fees.

How much does it cost to send money overseas?

When you send money internationally from Canada, exchange rates and transfer fees play a huge role in determining your costs.

• What you need to know about exchange rates

  The exchange rate reflects the value of one currency relative to another — for example, you might have heard in the news that 1 CAD equals 0.76 USD. This is the mid-market exchange rate, which is the rate banks use to trade currencies with each other. It’s considered the fairest exchange rate, without any markups.

  But most money transfer providers don’t offer you the mid-market rate. Instead, they add an exchange rate markup so that they buy foreign currency at a certain price, then sell it to you at a higher price. This is the primary way they make money.

  So if 1 CAD = 0.76 USD is the mid-market rate, the transfer provider might give you an exchange rate of 1 CAD = 0.73 USD. That’s 3 cents from every dollar you send that your bank or money transfer service will pocket.

  And while a few cents might not sound like much, it can really add up. If you’re sending CAD$20,000 to the USA, your recipient will get USD$14,600, which is USD$600 less than they would get if you could send your transfer at the mid-market rate.

• What you need to know about transfer fees

  Transfer fees can range from a few dollars to up to $80 or more, with some providers taking even more by charging a percentage fee instead of a flat fee.

  Depending on the provider, your transaction fee could be:

  • A flat fee that stays the same regardless of how much you send.
  • A tiered-fee structure in which the flat fee varies depending on how much you are sending (e.g. $5 for sending up to $500, $10 for sending between $500 and $1,000, etc.).
  • A percentage fee in which you’re charged a percentage of the transfer amount.
  • $0 for transfers above a certain amount

  Note that other fees that could apply. For example, a money transfer service could charge your recipient a fee to cash a bank cheque or pick up cash in person instead of by direct deposit.

  However, some companies don’t charge any transfer fees, but will instead rely on their exchange rate markup to make a profit.

Find the best way to transfer money internationally

• Wise: For the best exchange rates and transparent fees
• RemitBee: For quick, low-cost money transfers
• Remitly: For fast transfers via an easy-to-use app
• Africhange: For fast transfers to select African countries or the US
• Instarem: For competitive exchange rates and fees
• OFX: For low-cost business transfers
• MoneyGram: For instant money transfers
• WorldRemit: For fast, easy and cheap transfers
• Xe: For cheap money transfers and optional currency hedging strategies

Wise

Wise is one of the cheapest ways to send money internationally because, unlike most transfer providers, it offers the mid-market exchange rate when you send funds overseas, which is considered the fairest exchange rate, without any markups. Founded in the UK in 2011, Wise is one of the most popular money transfer companies in the world. It’s also registered as a money service business with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and is licensed and regulated in more than 15 countries around the world.

• How much it costs: There’s no exchange rate markup, but the transfer fee you pay varies depending on the transaction amount, the currency you’re sending money to, and how you pay for your transfer. For example, if you send $1,000 to the UK and pay via e-Transfer, you’ll be charged $8.03 in fees.
• Pay by: Credit card, Debit card, Bank transfer, Interac e-Transfer, Online bill payment, Direct debit (EFT)
• Receiving options: Bank account, Alipay (China only)
• Customer service: Phone, Live chat, Email
• Maximum transfer amounts: $1,500,000
• Number of currencies: 52

RemitBee

RemitBee is a cross-border money transfer and currency exchange platform for personal and business users. It was launched in 2015 by Canadian immigrants with the goal to offer all Canadian immigrants a low-cost way to move money internationally. It is FINTRAC-regulated with a head office in Mississauga, Ontario.

• How much it costs: The cost varies depending on the transaction amount, the currency you’re sending money to, and how you pay for your transfer. Fees start at $0.
• Pay by: Debit card, bank transfer, Interac e-Transfer, online bill payment, direct debit (EFT), Interac Online
• Receiving options: Cash pickup, bank account, mobile wallet, e-wallet
• Customer service: Phone, live chat, email
• Maximum transfer amounts: No limit
• Number of currencies: 51

Remitly

Remitly offers international transfers to over 170 countries around the world. It lets you send money to a bank account, mobile wallet or for cash pickup, depending on where your recipient is based, and Remitly will refund your fees if your transfer isn’t delivered on time. This provider has been in business since 2011, is listed on the Nasdaq stock exchange and has a highly rated app.

• How much it costs: An exchange rate markup and transfer fee apply. The markup varies depending on the currency you’re sending to, and the transfer fee generally ranges from $1.99 to $7.99 if you’re sending less than $1,000.
• Pay by: Credit card, Debit card, Bank transfer
• Receiving options: Cash pickup location, Bank account, Mobile wallet, Home delivery
• Customer service: Phone, Live chat
• Maximum transfer amounts: $999
• Number of currencies: 129

Africhange

Africhange is a money transfer company that specializes in moving money to and from Africa and North America. Founded in 2020, it uses blockchain technology to facilitate fast, fee-free transfers. It’s based in Edmonton, is registered with FINTRAC, and accepts payment via e-Transfer.

• How much it costs: There’s no transfer fee but an exchange rate markup applies. The size of the markup varies depending on the currency you are sending to.
• Pay by: Bank transfer
  
• Receiving options: Bank account
  
• Customer service: Phone, Live chat, Email
• Maximum transfer amounts: $9,500
• Number of currencies: 7

Instarem

Instarem has been in the money transfer business since 2014, and it lets you send money to more than 60 countries around the world. It’s also licensed and regulated in 11 countries, is transparent about its fees and exchange rates, and offers same-day transfers.

• How much it costs: You can send money to many (but not all) destinations without incurring any transfer fees. An exchange rate markup also applies, but this varies based on where you are sending money. For example, when we tried to send $1,000 to the UK, we were quoted a $0 transfer fee and an exchange rate markup of approximately 1.7%.
• Pay by: Bank transfer
  
• Receiving options: Bank account
  
• Customer service: Phone, Live chat, Email
• Maximum transfer amounts: $3,000
• Number of currencies: 30

OFX

OFX has been in the money transfer business for over 20 years. Founded in Australia, it also has offices in Canada, the US, and five other countries around the world. You can use OFX to send funds to more than 170 countries, and this provider offers a host of advanced currency tools to help you get the best exchange rate for your transfer.

• How much it costs: There are no fees when you send over $10,000, but there’s a flat fee of $15 on transfers below this threshold. There’s also an exchange rate markup on top of the mid-market rate, but this is usually 1.5% or less.
• Pay by: Debit card, Bank transfer
• Receiving options: Bank account
  
• Customer service: Phone, Email, In person
• Maximum transfer amounts: Unlimited
• Number of currencies: 52

MoneyGram

MoneyGram has been offering international money transfers for over 80 years. It allows you to send money just about anywhere around the world, with online, mobile app and in-person transfers available. MoneyGram also supports cash pickup transfers, bank account transfers, mobile wallet deposits and home delivery, and because it has over 430,000 locations worldwide, it’s easy to find somewhere to send or collect money.

• How much it costs: You’ll need to pay a transfer fee to send money internationally, and this is typically higher if you pay with a debit or credit card. Be aware that an exchange rate markup will also apply, and the size of the markup may vary depending on how you pay for your transfer.
• Pay by: Cash, Credit card, Debit card, Bank transfer
• Receiving options: Cash pickup location, Bank account, Mobile wallet, Home delivery
• Customer service: Phone, Email
• Maximum transfer amounts: $990
• Number of currencies: 136

WorldRemit

Founded in 2010, WorldRemit has helped more than 5.5 million customers around the world send money internationally to friends and family. It supports 70 currencies and offers multiple receiving options to suit your needs. And if you ever have a problem with a transfer, 24/7 customer support is available in 6 different languages.

• How much it costs: A base fee of $2.99-$4.99 applies to most transfers, but the total fee amount you pay varies depending on where you send money, the payment method and the type of transfer you send. There’s also an exchange rate markup which varies depending on the currency, and we found it ranged from 0% to 2.9% across a range of currencies.
• Pay by: Credit card, Debit card, Bank transfer, Apple Pay
• Receiving options: Cash pickup location, Bank account, Mobile wallet, Home delivery, Prepaid phone credit
• Customer service: Phone, Live chat
• Maximum transfer amounts: $40,000
• Number of currencies: 70

XE

XE is another well-known name in the currency exchange business. Founded in 1993 and headquartered in Ontario, XE offers global money transfers to an extensive list of global destinations. Multiple payment methods are supported, and XE also has an average rating of 4.3/5 from over 60,000 reviews on Trustpilot.

• How much it costs: The transfer fee you’ll pay varies depending on how you pay for your transfer, the currency you send and the destination country. However, fee-free transfers are often available. You’ll also need to take into account the exchange rate markup — this varies depending on the currency pair, but we found it to commonly be at or under 1% for popular transfer destinations.
• Pay by: Credit card, Debit card, Bank transfer
• Receiving options: Bank account
  
• Customer service: Phone, Live chat, Email
• Maximum transfer amounts: $560,000
• Number of currencies: 100

Other ways to send money internationally

CurrencyTransfer

Founded in 2010, CurrencyTransfer is a British company that offers international money transfers online to over 25 currencies. It has offices in London and Tel Aviv, and lets you compare exchange rates from a panel of currency brokers. You also get a dedicated relationship manager to help you get the best value for each transfer.

• How much it costs: There are no transfer fees to worry about, but the exchange rate markup that applies varies depending on the currency you send. You’ll get to see the mid-market rate alongside the exchange rates you’re quoted so you can easily work out the true cost of your transfer.
• Pay by: Bank transfer
  
• Receiving options: Bank account
  
• Customer service: Phone, Email
• Maximum transfer amounts: N/A
• Number of currencies: 28

Western Union

Western Union is one of the biggest names in the world of money transfers. This American company was founded all the way back in 1851, and today it lets you send money internationally to more than 200 countries and territories around the world. You can send to a bank account or complete a cash pickup transfer, and Western Union has 2,500 agent locations across Canada as well as over 500,000 locations globally.

• How much it costs: The exchange rate markup varies depending on where you are sending money. There often won’t be any transfer fee when you send an online transfer to an international bank account, but cash pickup transfers are more likely to incur a fee.
• Pay by: credit card, debit card, bank transfer and cash (for in-store transfers)
• Receiving options: cash pickup, bank account and mobile wallet
• Customer service: phone, live chat, email and in person
• Maximum transfer amounts: $7,500
• Number of currencies: 128

Simplii

Simplii Financial is CIBC’s online-only bank that was launched in 2017, and it’s best known for its chequing accounts, savings accounts, credit cards and loan products. But Simplii also launched its Global Money Transfer program in 2019, offering the ability to send money internationally to more than 130 countries. Cash pickup, bank account and home delivery transfers are available, and you can even earn 0.5% cash back on your transfer if you pay with a Simplii Cash Back Visa Card.

• How much it costs: There are no transfer fees to worry about, but there is an exchange rate markup that varies depending on where you’re sending money.
• Pay by: Credit card, Debit card, Bank transfer
• Receiving options: Cash pickup location, Bank account, Home delivery
• Customer service: Phone, Live chat, Email
• Maximum transfer amounts: $75,000
• Number of currencies: 99

PayPal

Digital payment provider PayPal needs no introduction. Founded in 1998 and perhaps best known as a payment method on eBay, PayPal also makes it easy to send fast international money transfers. And with the payment platform available in 200 countries around the world, it’s a convenient transfer option.

• How much it costs: Many international transfers from Canada attract a flat fee of $2.99 - $4.99, and if you pay with a card you’ll also be charged an additional fee calculated as a percentage of your transfer amount. There’s also a high exchange rate markup of 4% to consider.
• Pay by: Credit card, Debit card, Bank transfer
• Receiving options: Cash pickup location, Bank account, Mobile wallet
• Customer service: Phone, Email
• Maximum transfer amounts: $10,000
• Number of currencies: 25

What is the cheapest way to send money abroad?

The cheapest way to send money internationally is to use a specialist money transfer service. Unlike banks, which offer a wide range of financial products and services, these companies focus solely on international money transfers. And because they trade large volumes of currency, they can afford to offer better exchange rates and lower fees than banks.

In terms of saving money on your transfer, you’ll need to consider the sending and receiving methods you choose:

• Pay by bank transfer. Once you’ve chosen an international money transfer company, it’s usually best to pay for your transaction via bank transfer. These transfers often don’t incur any fees, while paying via debit or credit card will sometimes result in extra charges. Unfortunately, paying by bank transfer means your international transfer will take a little longer to complete.
• Send to your recipient’s bank account. It’s usually cheapest to send the transfer to your recipient’s international bank account. Cash pickup transfers often come with additional fees.

What’s the best way to send money internationally?

The best way to send money internationally varies depending on your needs. That’s why you need to consider your main priority when sending money overseas, such as:

• Fastest transfer. If you want to send an international transfer as quickly as possible, look for a company that offers cash pickup or mobile wallet transfers. These will typically ensure that your recipient gets the funds within minutes.
• Cheapest transfer. If you want to get the best value for your money, look for a specialist online money transfer company. Make sure you shop around for the best exchange rate and low or no fees, then pay via bank transfer and send to your recipient’s bank account.
• Cash pickup/receiving methods. If your recipient wants to collect the money you send as cash, the best way to send money internationally is to find a company with a large global network of pickup locations — including branches conveniently located close to your recipient.
• Available currencies. If you need to send transfers to a range of countries, search for a provider that supports all your desired currencies. While some providers only send transfers to a handful of countries, others support dozens and even hundreds of destinations.
• Large transfer. If you need to send a large amount of money internationally, for example to buy a property in another country. Look for an online money transfer company with:
  • High maximum transfer limits
  • Fee-free transfers
  • Tools like forward contracts and limit orders to help you secure a better exchange rate

Where to find international money transfer services

There are four options to consider when you need to transfer money overseas.

1. Money transfer specialists

These companies specialize in sending money internationally and offer a safe and secure way to transfer funds overseas. Some operate online only and allow you to send money via their website or mobile app. Others, like Western Union and MoneyGram, operate store locations so you also have the option of sending and receiving cash.

Online transfers to your recipient’s bank account will usually allow you to find the best exchange rate. If you send a cash pickup transfer, you can generally expect a lower rate and higher fees.

2. Banks

The second option is to send money internationally directly from your bank account. This includes major banks like TD, RBC and CIBC as well as digital banks like Simplii Financial and EQ Bank.

The main advantage of this approach is its convenience — you don’t need to sign up for any new accounts and you can simply send the transfer via online or mobile banking.

The downside is that banks have higher exchange rate markups and higher fees than specialist money transfer services, so your transaction will cost more.

3. Credit unions

You can also send money internationally from your credit union chequing account. Once again, this is an easy and convenient way to transfer money via online or mobile banking.

However, you typically won’t get as good an exchange rate as you could get from a money transfer service, while fees will also be higher. You’ll also need to check whether your credit union supports transfers to all the currencies you want to send.

4. Other financial services companies

There are a few other options when you need to transfer money from CAD to another currency. These include payment providers like PayPal, as well as currency exchanges and cheque cashing businesses.

Whichever option you choose, it’s important to shop around to find the best exchange rate. You’ll also need to check the fine print closely to make sure you’re aware of any fees that apply.

How to send money internationally with an online money transfer specialist

Although the exact process may differ between companies, these are the steps you’ll generally have to follow to send money internationally:

1. Get a quote. Enter key details such as how much you want to send, to which country and in what currency. You’ll also need to specify how you will pay for the transaction and how your recipient will access the money. You’ll then be shown a quote that shows the total cost of the transaction including the exchange rate, transfer fee, and how much your recipient will get. Be sure to double-check that the exchange rate quoted is the rate you will actually get for your transfer.
2. Create an account. If you’re happy with the quote, you’ll need to sign up for an account, which is usually free. You’ll need to provide details like your name, contact information, birth and Social Insurance Number (SIN). Some service providers may ask you to upload a scanned copy of ID (e.g. driver’s licence or passport) to increase the sending limits on your account so you can send large transfers.
3. Enter your recipient’s info. Provide the name of the person receiving the transfer as it appears on his or her personal ID, as they may need to present ID to receive the funds. You’ll also need their contact info. For deposits directly to a bank account, you’ll need the name of your recipient’s bank, the bank’s SWIFT code and your recipient’s account number.
4. Review the details of your transfer. Double-check the details of your transfer, including the exchange rate, transfer fee and your recipient’s information. If anything is incorrect, go back and make changes where necessary.
5. Submit payment. Payment methods vary by company, and keep in mind that the method you choose could affect the exchange rate and transfer fee that apply.
6. Track your transaction. After you’ve paid, you should receive a confirmation number and/or tracking number to monitor the progress of your transfer online or through an agent location. Your recipient may also need this number to receive funds.

Once the transaction is complete, you may receive an email or text notification that the funds have been received. Details of the transaction may be saved to your account to make future transfers quicker and easier.

How do I pay to send money overseas?

Supported payment methods vary between transfer companies, so you’ll need to do a little research when comparing providers. Some companies support bank transfers only, but others allow you to pay using a wide range of methods. Options include:

• Credit card
• Debit card
• Bank account
• Cash (you’ll need to visit a store location)
• Mobile wallet transfer

Crunching the numbers: Sending $3,000 to the Philippines

Let’s say you need to send $3,000 to a family member in the Philippines. These are the fees and exchange rates you can expect as of July 2023:

What other ways can I send money internationally?

• Cheques. You can take the old-fashioned approach of posting a cheque to your overseas recipient. The obvious drawback to this method is that it’s a lot slower than sending an electronic transfer, but you’ll also need to consider any fees for writing the cheque plus postage costs. Your recipient may also be charged a fee when they cash the cheque.
• Money orders. An international money order is considered to be a more secure way to send money internationally than a cheque. The funds for a money order are taken out of your bank account in advance, so unlike a cheque, a money order can’t “bounce”. But there are typically fees for you and the recipient, it’s a slow transfer method, and there’s a maximum limit of $999.99 per money order.

Can I send money internationally for free?

Well, sort of. While you may see companies claiming to offer “free” or “no-fee” transfers, there’s usually always some sort of cost involved.

For example, some providers don’t charge any transaction fees on international transfers. Just be aware that this doesn’t mean your transfer is free, as your bank or money transfer service will still add an exchange rate markup.

Some other specialist transfer services will waive their transfer fee on large transactions when you exceed a minimum threshold. But once again you’ll still have to contend with the exchange rate markup, so the transfer isn’t really free.

Tools to save more on an international transfer

While finding competitive fees and exchange rates can help keep your costs down, you may be able to save even more with the following tools.

• Forward contracts. Forward contracts let you agree to convert funds in the future at a pre-specified exchange rate. This helps you avoid unfavourable fluctuations in currency values.
• Limit orders. A limit order allows you to convert your funds only if a specific exchange rate is reached.
• Stop-loss order. A stop-loss order prevents you from converting funds at unfavourable rates by automatically stopping transactions if the rate hits a specified low threshold.
• Recurring transfers. Some transfer services may offer savings if you set up a schedule of regular, pre-authorized payments.
• Same-currency transfers. It can sometimes be cheaper to send Canadian dollars to your recipient and let them convert the funds to their local currency. They may be offered a better exchange rate and lower fees than you can access.

Frequently asked questions

• What is the easiest way to send money internationally?

  The easiest way to send money internationally is to send a wire transfer from your bank account. You don't need to sign up for any new accounts, and you can submit your transfer via online or mobile banking. However, international bank transfers are also a slow and expensive way to send money internationally, and you'll get better exchange rates and lower fees from specialist money transfer companies.

• Does Interac work internationally?

  Yes, it is possible to send money internationally with Interac. If your financial institution supports International Transfer by Mastercard and Interac, you can send money from your bank account to over 75 countries worldwide. You also have the option to send a cash pickup transfer with Western Union via Interac e-Transfer.

• How do I send money overseas from Canada?

  You have several options to send money overseas from Canada. The cheapest option is to use a specialist online money transfer company to send funds to your recipient's international bank account. The fastest option is to send a cash pickup transfer through a company like Western Union, MoneyGram or WorldRemit. The most convenient option is to send an international wire transfer from your bank, but you'll get poor exchange rates compared to specialist transfer services.

• How long do international money transfers usually take?

  Transfer speeds vary depending on the provider, the destination country, your payment method and how your recipient is getting the funds. Transfers can take anywhere from minutes to several business days. Be sure to confirm the timing of your transfer before submitting your payment.

• What if I only want to transfer a small amount of money?

  Companies like PayPal and Wise can be useful for sending smaller amounts. Some transfer services have minimum transfer amounts. For bill splitting or sending money within Canada, you may want to use a Canadian money management app instead of a money transfer service.

• What if I have a question or problem?

  If you experience any problems with your overseas money transfer, contact your money transfer service provider. Typically, customer service is available by phone or email. Some providers offer a live chat option as well. You may also be able to find a solution to your problem by checking the company's online FAQ section or help centre.

Written by

Tim Falk

Writer

Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio