Whatever your reasons for wanting to send money to Canada, it’s important to know what the cheapest and most reliable way to get your money there from Australia is. Savvy has partnered with a panel of international money transfer providers who can help you with every aspect of your international transfer. Compare the fees charged, exchange rates offered and other factors here with Savvy today so you can confidently get your funds on their way for the right price.
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There are many ways to send money to Canada. The options you have at your disposal to transfer your funds overseas include:
International money transfer companies
These are companies that specialise in transferring money across international borders. They don’t use the international SWIFT banking system, but rather have developed other methods for transferring money overseas which are quicker, cheaper and more cost-effective than using the traditional banking system (namely online transfers).
Different transfer companies can offer a wide range of services, from a mobile transfer app which you can use to store currencies from different countries to full online business foreign exchange services. Choose the type of transfer service you require to best suit your needs.
Some transfer companies offer cash transfers to Canada, which can be completed in a matter of seconds after you send them. They offer cash pickups (and sometimes deliveries) on the same day which can be collected at your Canadian destination almost immediately by a designated recipient. However, these often come with higher fees attached compared to transfers sent directly to a bank account, so it may not be the most suitable choice for you.
Traditional bank transfers
You could also use your traditional bank to transfer money to Canada. However, they’ll charge fees of up to $30 to do so, and their exchange rate is likely to be lower also. In addition, you’ll often have to wait for three to five business days for your bank transfer to arrive, making them a more expensive and slower choice for sending your money to Canada.
PayPal is another option for sending money overseas. However, even though the money may instantly appear in your recipient’s PayPal account in Canada, it may take an additional three to five days for the funds to land in their standard bank account. You also won’t know in advance what exchange rate you’ll be given, which can often be far less favourable compared to those charged by a specialist international transfer company. If you compare a PayPal transfer with one offered by an international money transfer service, you’ll find the latter is by far the cheapest option.
Another method to get money to Canada is to send funds through to a mobile phone pre-paid SIM card. Although this method can be useful if the person receiving the funds doesn’t have a bank account, you won’t have any say in the exchange rate you receive or the fees charged, which can be substantially higher than if you use an international money transfer company.
Using Apple Pay
Whether you can use Apple Pay to finance your transfer to Canada will depend on which company and the method you choose, as not all providers support Apple Pay. However, it’s important to know that using credit cards such as those linked to your Apple Pay digital wallet to pay for your international money transfer can cost you a fee of between 3% and 5% of the transfer amount, in addition to other set fees.
Whichever way you choose to complete your international money transfer, your cheapest and most efficient option will be using a specialist money transfer provider. You can compare from a variety of respected and licenced companies right here with Savvy and get your transfer to Canada underway today.
There are two main aspects to the cost of sending money to Canada: the exchange rate you’ll be offered and the fees charged to make the transfer.
When comparing your options, aim to get as close to the mid-market exchange rate as possible. The mid-market exchange rate is the ‘true’ international exchange rate banks use to exchange money between themselves, so this rate offers the best deal at any point in time. The markup put on the exchange rate when you transfer money internationally will have the greatest effect on how many of your Australian dollars end up in Canada; the closer to the mid-market rate your exchange rate is, the more Canadian dollars you’ll be able to buy.
Money transfer fees are either based on a percentage of the transfer amount (typically from 0.4% to 0.65%) or you’ll be charged a small set fee (up to $15), with an additional markup on the exchange rate possible being added also. Which type of fee structure is best for you will depend on how much you wish to send. In general, if you’re transferring under $5,000 to Canada, a percentage-based fee may be your cheapest option. Over $5,000, and you’re likely to be better off with a set fee.
If you want to transfer money for business reasons to Canada regularly, it could be worthwhile looking into companies that offer business-focused services. Such transfer companies offer business account managers to regular customers and can offer discounts to repeat customers who regularly send money overseas from Australia to Canada for business reasons. Therefore, your business may be able to save on money transfers by choosing one of these options.
International money transfer companies can get money overseas quickly, either instantly in seconds, on the same day or within two days on average. However, not all companies offer the same speeds, so this is a point to consider when comparing. Some providers charge a premium to ensure express delivery, so this may be an option for you if you need your money urgently. However, it usually isn’t worth paying more for a fast transfer if there isn’t any great time pressure.
Minimum and maximum transfer limits
There are minimum transfer limits imposed by some companies. These range from $1 right up to $250 for minimum limits, while maximums range from $5,000 per day up to an almost unlimited sum of $500,000 or more in some cases. It’s important to ensure that the transfer you need can be facilitated by your provider.
Most international transfers can be paid for either by direct debit from your bank account, by EFTPOS using a debit card, or by cash if you’re arranging the transfer in person. You should always check with each provider that they support your preferred payment method.
Some transfer companies offer currency tools to assist you in getting the best exchange rate. These include:
If you wish to send money to Canada, first you’ll have to open a transfer account. This is a quick and simple process that should take no longer than five minutes. The steps to follow are:
All transfers over $10,000 also have to be reported to AUSTRAC through your transfer provider, so if you’re making a big transfer, you can expect to be asked to provide proof about the source of the funds and why they’re being sent overseas.