If you are in Canada and want to transfer money abroad, you can do it quickly, safely, and reliably through international money transfer services offered by most Canadian banks.
International money transfers send money electronically between businesses or individuals. The sender gives instructions for the money transfer, including the recipients’ details, and the bank facilitates the transfer—commonly known as a wire transfer.
In this guide, Remitly lists the top Canadian banks for international money transfers and tips for choosing the right one, including insights on fees, features, services, and how to get the best value for money.
Selecting the Right Bank
Banks remain the leading choice for international transactions. However, choosing the right bank is crucial. Making a well-informed decision is key when selecting a bank in Canada for international transfers.
Competitive foreign exchange rate
The currency exchange rate is the one key factor that can adversely affect the nature of an international wire transaction. Exchange rates are volatile, and most banks have a markup above the average.
Some banks offer better rates than others, so it’s important to conduct thorough research and compare the available options before committing. Settling for a competitive and favourable exchange rate can save you a significant sum of money and ensure that you maximize the value of your global transaction.
In addition, it ensures the recipient of the money benefits by getting the maximum amount they can from the transaction.
Clarity and transparency in processing/transferring/service fees
Different banks and institutions charge different service fees, including bank charges, transaction, and receiving fees.
Some banks are transparent and upfront about all the charges and lay it clear for their customers, while others may hold this information from you. Finding out the hidden charges or exorbitant fees after you initiate a transaction can be an unpleasant experience.
When going through the list of banks available, look out for the ones that outline all the expected costs associated with international transfers. With such clarity, you can effectively budget for your wire transfer and avoid hidden charges that might reduce the amount you intend to transfer.
Processing time, speed, and efficiency
When it comes to international bank transfers, time plays a key role in how long it takes for the money to reach the recipient.
Transfer time can take anywhere from a few hours to several days depending on the bank. This could be due to several factors, such as destination country, different time zones, holidays, and bank systems and infrastructure.
Opt for a bank that offers fast and reliable services. This will ensure the money transfer process is seamless and that it reaches the recipient on time.
Security and reliable customer service
Security is a key factor in international money transfer. Most banks comply with regulatory laws and have secure encrypted technologies to safeguard financial information.
Choose a bank with trusted, secure systems to ensure peace of mind over your money.
Effective customer service
Like any other transaction, money transfers across borders may experience unexpected hitches that could lead to delays. Choose a bank that offers full-time customer support and can handle unexpected challenges when they occur.
Top Canadian Banks for International Money Transfers
Here are the top five reliable Canadian banks to consider for transfer services.
1. RBC international transfers
RBC (The Royal Bank of Canada) is a safe and secure option with competitive exchange rates. Through its reliable online platform, RBC makes global transfers easy and seamless to over 200 countries.
2. TD Bank international transfers
TD Bank (Toronto-Dominion Bank) is known for its online platform, EasyWeb. It offers reliable, quick, and flexible cross-border transfers.
3. Scotiabank international transfers
Scotiabank offers a secure and easy international money transfer with a wide range of global reach. Customers benefit from the competitive rates and can transact without expecting high fees.
4. BMO international transfers
The Bank of Montreal is an excellent option if you are looking for reliable international transfers. It offers secure and wide-reaching cross-country money transfers through its online and mobile banking platform.
5. CIBC Global money transfer
The Canadian Imperial Bank of Commerce (CIBC) is a cost-effective option, allowing users to send money globally without extra fees.
Each of these Canadian banks is an excellent option for international money transfers.
Key Features and Services
Most Canadian banks that offer international money transfers provide a wide range of services and features designed to make the entire transaction process safe, smooth, and cost-effective.
Below is a table comparing the key features and services provided by the leading Canadian banks for international financial transfers.
Key feature and service comparison chart
| Bank | Transfer Fees | Notes | Exchange rate analysis | Speed and convenience |
| RBC | $C13.50 to $C65 | Transfer charges depend on the transaction amount and destination. | Competitive rates are slightly above mid-market rates. | Transfers generally take 2-3 business days. Has a user-friendly online platform. |
| TD Bank | $C10 to $C50 | Transfer fees are based on the method used and the destination. | Rates vary depending on amount, currency, and available margins. | Typically offers same-day transfer options. Features an easy-to-use EasyWeb online platform.
|
| Scotiabank | $C1.99 | Rate applies to specific select countries. | Offers competitive exchange rates. | One of the fastest transfer bank options- within 1-3 days provided on an online and mobile platform. |
| BMO | $C15 to $C125 | Minimum and maximum fees apply. | Has a slightly higher exchange rate than the usual mid-market rate. | Transfers normally take around 1-3 business days. Reliable, user-friendly online mobile option. |
| CIBC | No transfer fees. | The most cost-effective option. | Offers competitive rates at the minimum, especially on major currencies. | Offers quick money transfers, typically in 1-2 business days. Known for its smooth online transaction process. |
The above illustrates a summary of the top five Canadian banks offering global wire transfers.
Understanding international wire transfer fees: a breakdown of fees
As a new immigrant to Canada, sending and receiving money internationally can be a challenging and expensive experience, especially when it comes to fees. The transaction charges can add up quickly and come as a real shock when sending money to your loved ones.
Understanding the transfer fees is a crucial step to avoid unpleasant surprises and ensure the recipient gets the maximum intended amount.
Below is an elaborate breakdown of various types of wire transfer fees, and how they apply and work.
Sending/outgoing wire fee
The sending fee is a charge set by the bank for the international money transfer transaction. It varies depending on the bank and the transfer method. For most Canadian banks, the cost ranges from $C20 to $C75.
Incoming transfer fee
Commonly known as an incoming fee, this is a charge deducted by the recipient’s bank. The fees vary from bank to bank, but they range from $C10 to $C30. Also, it’s important to note that a failed transfer attracts a non-negotiable fee, typically ranging from $C25 to $C50.
Minimum and maximum wire transfers
Most banks have limits on transaction amounts on wire transfers.
Intermediary bank wire fees
Your international wire transaction is most likely to pass through an intermediary bank, which could be more than one bank in some cases. The intermediary bank is likely to charge a fee, which, depending on the bank, typically ranges from $C10 to $C30.
Exchange rate conversion fee
Exchange rate fees apply when the sender and the recipient use different currencies. Depending on the bank, the markup rate can range from 1% to 5% of the transfer amount.
Alternatives to Bank Transfers
Banks may be the traditional method of sending money globally, but other international wire transfers are convenient, cost-effective, and fast.
These include:
- Online payment platforms such as Remitly, Venmo, PayPal, and Apple Pay Cash.
- Interac e-Transfer is a Canadian funds transfer service that allows users to send and receive funds through an app, online, or over the phone.
- Money Transfer Services specializing in international money transfers.
- Money Transfer Operators (MTOs)—physical money transfer locations that facilitate cash transfers.
- Online international payment platforms such as Payoneer and Skrill.
Benefits and Limitations of Non-Bank Options
Non-bank money transfer options play a significant role in international funds transfer. These have rapidly gained popularity for several reasons, including their cost effectiveness, affordability, and speed. However, these alternatives have limitations.
Benefits of non-bank transfers
- Competitive exchange rates
- Slow transfer fees
- Speedy processing time
- Extensive global reach
- Provide user-friendly online platforms
Drawbacks of non-bank transfers
- Lack of proper regulatory laws
- Lack or limited customer support
- Restrictions on currency
- Security challenges
- Limits on funds transfer
- Limited global reach
Tips for Making Cost-Effective International Transfers
While choosing the right bank for an international wire transfer is important, you must also make your transaction cost-effective.
You can minimize costs efficiently by following these tips:
- Online banking platforms: Use mobile apps for your bank transfers. Most banks offer lower transaction fees and often have promotion offers on rates.
- Compare different banks: Before settling on a bank for an international transfer, shop around and compare transfer and exchange rates.
- Monitor currency rates: Rates fluctuate daily. Time your transfers and take advantage of periods when the exchange rates are favourable.
- Opt for direct routes: A direct route without an intermediary bank for your transfer destination will minimize the transfer fee. Go for banks that offer direct routes to minimize costs.
Choosing the right bank
Whether you are sending money to a loved one overseas or paying for delivery across borders, choosing the right bank for your international wire transfer can make all the difference in terms of cost, speed, security, and convenience.
Pay attention to the exchange rates, fee structures, speed, efficiency, reliability, and global coverage. Consider banks with reliable and user-friendly online platforms and available customer support services.
Frequently Asked Questions
How can I send money internationally with a Canadian bank?
Canadian banks facilitate international money transfers through various methods, including wire transfers, bank drafts, online money transfer services, and remittance services.
How long do international money transfers take with Canadian banks?
International money transfers can take anywhere from a few hours to five business days, depending on the amount, the destination country, and factors like holidays.The method of transfer can also affect the number of days it takes for a transaction to complete.
What currencies can I send via Canadian banks?
Canadian banks offer customers a variety of currency options when it comes to sending money. Some of the most common currencies include the US Dollar, the Euro, the British Pound, the Australian Dollar, and the Canadian Dollar.