There are three main ways to send money abroad:
Money transfer companies
Banks
PayPal
Of the three, money transfer companies will offer you the best deal 99% of the time.
Let's use a $1,000 transfer to Europe to explain how it works.
Example: Sending $1,000 CAD to Europe
Method | Detail | Mid-Market Rate | Exchange Rate ($1 = €XX) | Fees | Received amount |
|---|---|---|---|---|---|
Money transfer company | A company online, or through an account manager, offering competitive rates on international transfers. | 0.6748 | 0.6743 | $6.64 CAD | €668.92 ✅ |
Bank account | Every day banks, like CIBC, offer weaker exchange rates and slower transfers. | 0.6728 | 0.6493 | From $30.00 CAD | €630.50 ❌ |
PayPal | Apps like PayPal generally offer the worst exchange rates and add a fee percentage on top. | 0.6728 | 0.6425 | $4.99 CAD + 4.5% | €609.30 ❌ |
If you want an instant answer, then without knowing the specifics, we'd probably say Wise. They come up cheapest 85% of the time according to our analysis.
However, the truth is, you should always compare before you send, or you might be missing a better deal.
To compare providers for your specific country, currency, amount & payment method, enter your details into our search form.
Money transfer companies generally fit into two categories - online only providers, and managed services.
This table gives an idea of how these two options generally compare:
Type of money transfer company | Quote | Cheapest for | Transfer method | Cost effective option | Check rates |
|---|---|---|---|---|---|
Online only | Instant | Smaller transfers | Self-service in login area | Wise | |
Managed service | Custom | Larger transfers | Email or phone, with account manager | Key Currency |
Here's why we chose these two as our top options. Data on why we have chosen Wise (online only) and Key Currency (managed service) as the cheapest money transfer options can be seen on the relevant tabs.
 Key Currency 4.2 | |
Fees 0.1% - 2.6% | Fees None |
Exchange Rate Markup 0% | Exchange Rate Markup 0.1% - 0.6% |
Transfer Speed Minutes - 24 hours | Transfer Speed Minutes - 3 days |
| Visit | Visit |
Read on to find out how a specialist money transfer company can offer you the cheapest rates & low fees.
Rates, fees & special offers are changing all the time.
The cheapest transfer today might not be the best deal tomorrow.
That’s why we always recommend that you should compare before you send.
What impacts the cost of a money transfer
The amount you're sending, and the rates and fees charged, all impact the cheapest way of sending money.
The more you send, the greater the need for a competitive exchange rate. You’re more likely to get this through using a money transfer company than a bank.
Rates and fees within international money transfers
Here’s how each point impacts the overall cost of sending money.
Mid-market rate
The mid point between the buy and the sell price of two currencies, without any added fees or margins.
Exchange rate
The rate banks, PayPal or money transfer companies offer you, typically including a profit margin.
Fees
Fees are typically included in your quote. So from a $5 CAD fee for sending $5,000 CAD to Spain, The $5 CAD will be deducted first, and you’ll then get $4,995 CAD converted to euro.
Each international money transfer company has its own exchange rate. Sometimes this matches the mid-market rate, but many companies give you slightly worse rates. This is called the 'markup', or how much hidden costs are bundled into the exchange rate.
Simply put, this is how much currency you’ll get for your CAD. The percentage above the mid-market rate is called the exchange rate markup.
Banks tend to offer much less competitive exchange rates vs. the mid-market rate - we see this as you’re paying a convenience charge for already having an account and using it, as opposed to shopping around.
This convenience charge pays for intermediaries used by banks to transfer your money.
This is why ‘free’ or ‘low-fee’ transfers aren’t always better, as if you’re paying a higher exchange rate, you still might end up receiving a lot less at the other end of the transfer.
We chose Wise as one of our cheapest options as they offer rates at the mid-market rate and add a small fee - which works out cheaper overall for someone sending money.
The location, payment method, and how the money is received
How and when you want to send will also impact overall cost.
Where you’re sending to might impact the overall cost if it’s considered more ‘difficult’, due to timezone differences and how they impact banking hours or payment networks.
For instance, London is 5 hours ahead of Toronto. So, if you process a payment at 4pm on a Friday in Toronto, it is already 9pm in London, effectively the weekend for banks.
The method of payment for a transfer can also affect the cost. Paying in cash into a shop is significantly more expensive than sending via a bank transfer. Again, this cost difference might not be in the form of fees, but in the exchange rate you receive.
How the person receives the money (receiving fees) can impact the overall cost - banks like CIBC require a $15 CAD fee for any incoming transfer into Canada for example. So for a $1,000 CAD transfer example above, the recipient would receive just €615.30 after receiving fees.
Receiving fees won’t show in calculations given by money transfer companies. This is because each bank has a different fee structure.
We have put together the following information on expected fees per bank, and average fees per country.
It should be noted these fees aren’t applicable everywhere, but it’s best to check with the person you’re sending money as to who will cover these fees and whether these should be included in your calculation.
The speed and time of a transfer can potentially impact cost in that some providers will charge extra for sending over a weekend, and some providers will offer express services for a higher fee.
Generally, if you want to send quickly, it’s worth paying, but if you just want the cheapest option then you can avoid these express fees and ensure you always send in traditional business hours.
How can money transfer companies offer cheaper options for bank transfers?
When you’re transferring money overseas directly from a bank account, you pay a premium to use intermediaries and as such, bank transfers directly through a bank are more expensive.
Sending using a bank account isn’t the same as a bank transfer through a money transfer company - where in effect you use a linked bank account to send your money to the company in a local account, then they will use their network to move the money, and send it back to a recipient from a local account.
This benefit in cost comes as the overheads are lower for a money transfer company, they can use their technology (and fewer intermediaries) to fuel the transfer and charge a fee or markup the exchange rate at a much lower rate than a bank would - and still make money.
You will fund a money transfer account through a bank transfer, but as the company carries out the transfer within its own network, you don’t pay the intermediary markups.
Examples of the cheapest options
Here are the cheapest options for transferring money to each of these countries from Canada. We have included PayPal and banks to give comparable insight into this data.
Numbers are averages from our data over the last six months and updated weekly.
These are based on bank transfers to the country.
As we’ve mentioned, the cheapest option for your specific transfer will be different depending on your needs. We would always recommend carrying out a live comparison to ensure the best deal.
Americas
When talking about The Americas we include North America, South America, Central America, and the Caribbean.
United States
Money Transfer Company | Bank | PayPal | |
|---|---|---|---|
Amount Sent | $1,000 CAD | $1,000 CAD | $1,000 CAD |
Exchange Rate | $0.7106 USD | $0.7092 USD | $0.6958 USD |
Fees | $4 CAD | Average from $30 CAD | $4.99 CAD + 4.5% |
Amount Received | $722.49 USD | $687.92 USD | $662.53 USD |
$35 USD less | $60 USD less |
Mexico
Money Transfer Company | Bank | PayPal | |
|---|---|---|---|
Amount Sent | $1,000 CAD | $1,000 CAD | $1,000 CAD |
Exchange Rate | 14.4695 MXN | 11.8370 MXN | 11.6300 MXN |
Fees | $0 CAD | Averages from $30 CAD | $4.99 CAD + 4.5% |
Amount Received | 12,059.93 MXN | 11,481.89 MXN | 11,072.33 MXN |
578 MXN less | 987 MXN less |
These numbers are based on transfers from Canada to United States and Mexico using our comparison engine - different countries may have slightly different rates and fees. We always recommend you carry out a search to get the best deal.
Europe
Sending money to Europe is easy from Canada, particularly in the more common routes into the Euro or the British pound.
Euro
Money Transfer Company | BANK | PAYPAL | |
|---|---|---|---|
Amount Sent | $1,000 CAD | $1,000 CAD | $1,000 CAD |
Exchange Rate | €0.6774 | €0.6593 | €0.6425 |
Fees | $6.34 | Average from $30 CAD | $4.99 CAD + 4.5% |
Amount Received | €668.92 | €630.50 | €609.30 |
€38 less | €59 less |
British pound
Money Transfer Company | BANK | PAYPAL | |
|---|---|---|---|
Amount Sent | $1,000 CAD | $1,000 CAD | $1,000 CAD |
Exchange Rate | £0.5617 | £0.5532 | £0.5475 |
Fees | $6.78 CAD | Average from $30 CAD | $4.99 CAD + 4.5% |
Amount Received | £569.74 | £536.60 | £521.27 |
£33 less | £48 less |
Asia-Pacific
Remittance flows are a significant source of income for many countries in Asia, owing to many from the continent migrating to more developed countries in search of high wages and a better standard of living.
India
Money Transfer Company | Bank | PayPal | |
|---|---|---|---|
Amount Sent | $1,000 CAD | $1,000 CAD | $1,000 CAD |
Exchange Rate | 60.0800 INR | 58,4211 INR | 57,8157 INR |
Fees | $1.99 CAD | Average from $30 CAD | $4.99 CAD + 4.5% |
Amount Received | 60,041 INR | 56,668 INR | 54,938 INR |
3,373 INR less | 5,103 INR less |
Wise is listed as our cheapest option 85% of the time.
They offer the cheapest transfers more than anybody else because they match the mid-market rate.
This is offset by Wise having fees associated with transfers which in some cases are higher than competitors. However, these set fees, are outweighed by the savings you will make on the competitive exchange rates offered.
This is why Wise is seen as having a 'transparent fee structure'. Essentially, you are paying the most competitive rate for the transfer possible, but paying a small fee to Wise to carry out the transfer for you.
Just a note: Bank transfers through Wise are the most cost-effective transfer, using a debit card as a payment on average adds 0.20% to the overall cost of a transfer because of a debit card interchange in Europe.
How the purpose can impact cost
Regular or large payments, or business payments (which tend to be both) can mount in cost over time. Bigger payments could mean bigger fees, even with an exchange rate.
This is why we suggest using currency brokers for transfers over $10,000 CAD.
At the opposite end, if you make regular small payments of $200 CAD, a $3 CAD fee will add up over the course of the year.
Regular payments: Sending money home
Reviewing the cost. of regular transfers, like any regular payment, is essential.
Whilst Remitly might be the cheapest provider for sending $1,000 CAD to India today, that might change over time - so don’t limit yourself to that one option.
On top of this, if the regular payment is incurring a fee for a better rate, then be sure to work out the cost over time for these transfers. It may be that paying a fee one off is cheaper, but further down the line becomes a less cost effective way of transferring.
Track the cheapest transfer deals
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Large payments: Buying a property
As you’ll see in the above tables, the greater the amount you transfer the bigger impact exchange rates will have on our overall cost. If for every $1,000 CAD you lose €30 at the other end, a $10,000 CAD transfer could cost the recipient upwards of €300.
For payments over $10,000 CAD you would be best to go with a managed service. Managed services offer competitive exchange rates and will account manage your transfers.
For the most part a currency broker will also be fee free, as they make their money in the exchange rate charged.
Key Currency is our choice low low-cost, large transfers. They were the cheapest managed service in 68% of searches over the last 6 months from Canada.
As a managed service, they will provide you with a point of contact to carry out the transfer.
For larger transfers they also offer limit orders - a target exchange rate at which they will buy the currency on your behalf when it's hit. This can potentially slow down the transfer in time, but when working with significant sums of money can make a huge difference in overall cost.
There's also the option for forward contracts, where you can lock in an agreed exchange rate in advance for when you want to send.
Most managed services will give you the exact exchange rate when enquiring - but the average for Key Curerncy over the last 6 months has been between 1.5-2.5%, with no fees added.
In comparison, sending through a bank could cost upwards of 8% when fees and less competitive exchange rates are factored in.
Business payments
The cheapest way for transferring money for business purposes will likely need to account for both regular payments and large payments.
Business money transfers need to have further considerations for forward contracts and the potential to control exchange rates.
Payment methods
Money transfer providers are the cheapest way to send money internationally.
They keep their overheads low and don’t need to physically send money overseas - but you still need to fund your account in the most cost-effective way to ensure cheaper transfers, as well as choose the right option.
Bank transfers
When using a money transfer services, bank transfers are more often the cheapest way of sending money.
To recap from our earlier point, using your bank account to directly transfer money is not the cheapest way to send money abroad, but a bank transfer payment through money transfer services is often the best option.
This is because ‘traditional bank transfers’ typically involve more intermediaries, each adding fees and margins.
A small point that adds up, money transfer companies have streamlined processes specific to the transfer process and operate primarily online, which reduces the need for multiple systems and physical branches, and the associated costs that come with both.
A money transfer company will often use local accounts, so in theory, you give your money to a company, they move the money to their account in another country, you (or the recipient) receives that money back.
For large transfers, funding a money transfer provider through a bank transfer will likely be the only option.
Debit cards
Sending with a debit card will be convenient, but not likely not the cheapest option.
It is possible to send money using a debit card in instances where you don’t want to provide bank details, or are using a prepaid card.
Whilst this can still be cheap to do through a money transfer company, it also can come with higher fees - it’s still a viable option, however.
Credit cards
A credit card transfer is not the cheapest option.
Credit card transfers are similar to debit cards, although some companies won’t accept them.
We’d also suggest avoiding using a credit card for an international money transfer unless necessary due to the fees and interest rate paid after the transfer to your credit card provider.
Email money transfers
An email money transfer is not the cheapest option
Some money transfer providers, like Wise, let you send money overseas via email. They do this using their own P2P payment system. This allows you to cheaply send money internationally to people without a bank account. If you want to send email transfer, the recipient will need to have an account with the money transfer provider you’re using.
Receiving options
Multi-currency accounts and money transfer apps
Receiving money into a provider portal - like a multi-currency account or wallet - is a great option.
If you’re sending between Wise and Wise, for example, this makes the process even easier.
Bank account
A bank account is the most convenient way of receiving money in most cases.
If you’re making large purchases, you will likely be sending to the bank account of a legal company as well.
As mentioned, be aware of any receiving fees - generally a minimum fee, or a percentage of the transfer.
Cash pickup
Cash pickup is a common option for countries where banking rates are lower. Whilst convenient, they can come at an increased cost.
Using MoneyGram as an example, a fee for a $500 CAD transfer for cash pickup is $68.99 CAD. For comparison, the cost of sending to a bank account is $8.99 CAD.
Prepaid cards
Sending to a prepaid card is a simple way to receive money. It is increasing in popularity due to the high cost of sending for cash pickup.
This method is similar to a bank transfer with, the slight nuance that a card has to be ‘prepaid’, almost like a gift card.
Are you sacrificing anything for cheaper options?
By opting for a money transfer provider over a bank you are not sacrificing anything. You’ll get a better rate and lower fees.
These also come with tiers, so going for the cheapest option with a money transfer provider could mean a slightly slower speed of transfer. Although, this will still be faster than using a bank.
Think of this in a similar way to Netflix subscription options.
At one end you have the budget option which comes with ads and standard-definition viewing. At the other end you have premium - where you can use multiple devices, download, have no ads, and view in 4k.
Are there any other ways to minimize cost?
The standard way to minimize cost is to follow the above points and compare rates for the transfer you want to make.
Generally, the points to consider outside of this are:
Avoid using credit cards
We’ve mentioned credit cards already not being the cheapest way to send, but it should be reiterated that unless an absolute emergency, this should be avoided.
Interest rates and fees on using credit cards add a hidden cost if the amount remains unpaid for a longer period of time.
Avoid banks
We’ve highlighted the cost of using a bank - but again, it shouldn’t be understated.
Millions of dollars per year are needlessly spent on international transfers through banks. Following almost exactly the same process of sending via a bank, but opting for a money transfer company, can work out to be much cheaper.
Send at the right time
Sending at the right time can mean either when the rate is beneficial, or within the correct hours. For example, Revolut adds 1% to their markup when sending over the weekend. This potentially adds hundreds of dollars to the cost of larger transactions.
Understand where the money is going
Some of the costs associated with sending money will also be made up of receiving fees. Understand how the recipient will receive the money and agree in advance who is responsible for these fees.
Risk management and hedging
Effective risk management can cut the potential of financial losses from currency fluctuations.
This makes the regular, larger payments, cheaper.
Businesses use forward contracts, options, and swaps to lock in exchange rates ahead of international transfers.
These options aid with cost predictability in cross-border transactions.
Edge cases and workarounds: How do they stack up?
There are a few other ways to work around transferring money affordability, although each is a little more manual and will have limits (such as the amount of money you can transfer). We’ve outlined some below.
HSBC accounts
For those with an HSBC checking account it is possible to open either a global money account or in some cases an account in say Japan, as you’re an existing customer. From here, you can transfer money between your accounts at a fairly competitive rate - with the added bonus of using the card in that country as well.
The downside here is the obvious, if you do not have an HSBC account, you wouldn’t be able to do this - but also beyond this, amounts are limited to lower numbers than a standard money transfer company.
Potentially a good option for regular travelers who want to use the account, but unlikely to be much use for things like sending money to family and friends, or buying a property.
Crypto payments
Crypto has been used for international transfers in specific cases where traditional transfers aren’t always possible. For example, USDT (a cryptocurrency that matches the US dollar) payments to Ukraine have increased for both donations and personal use since the start of Russia’s invasion into the country. This is because banks were unable to process all payments, but cryptocurrencies work outside of the standard banking network.
With international crypto transfers, there are no currency conversion fees because you are in theory moving one currency between accounts. You will likely pay a small percentage of the amount to the provider of the transfer.
Whilst crypto payments offer alternative options and are relatively cheap (depending on the choice), it does mean you will have to buy the cryptocurrency which has its own fee, as well as sell it to get the currency at the other end - again with a fee.
When considered alongside sending and paying a small exchange rate and fee through a money transfer company - the amount you’ll spend will generally not be worthwhile.
Note: this data is in USD to align with cryptocurrency platforms
Money transfer company | Cryptocurrency payment | |
|---|---|---|
Amount sent | $1,000 | $1,000 |
Buy USDT | $0 | Up to 3.75% |
Fees to send | $8.63 | $0.00 |
Cost to withdraw USDT to EUR | $0.00 | Up to 3.75% |
Exchange rate to EUR | €0.9335 | Varies by network |
Amount received | €924.50 | €922.00 (maximum) |
If you’re already using cryptocurrency it could be a good idea for smaller amounts, but for things like buying property, there will likely also be huge amounts of tax to pay upon withdrawal, and proof of source of funds will be difficult.
Regulation (or lack of it in certain countries) of cryptocurrency assets makes sending unpredictable, as well as the volatility in the market. As such we would recommend using a safer, regulated option for transfers - as this will be both cheaper and easier for you in the long run.
ATM Transfers
ATM transfers are a good option if transferring less than $1,000 and can offer an element of speed and convenience if you’re against signing up for a new provider and are in the vicinity of an ATM. Over $1,000 becomes quite difficult and time-consuming.
However, whilst three-digit transfers are free they can take a huge amount of time compared with signing up to a money transfer provider.
Premium accounts and multi-currency accounts
If you’re a regular traveler, or regularly sending smaller amounts of money home or to a relative - then the cheapest way may be to get a premium bank account that comes with lower limits or costs for regular transfers than the standard rates mentioned above.
Outside of this, and slightly crossing over, are multi-currency accounts.
Both offer elements of freedom and flexibility when it comes to sending money, as well as holding money in different currencies.
Generally, you would still get a better rate and more freedom using a multi-currency account from a money transfer provider.
For example, Wise has no ongoing fees, Revolut Premium is $9.99 per month and the Citibank International Account is up to $150 a month (depending on the amount of cash held. A full breakdown is here:
Wise Multi-Currency Account | Revolut Premium | Citibank (now NAB) | |
|---|---|---|---|
Holding currencies supported | 50+ | 37 | 21 |
Monthly fee | $0.00 | $9.99 CAD | Up to $150 CAD |
Average exchange rate markup | 0.2% | 0.73% | 1.5%* |
*it has been noted that some users were incorrectly told by Citibank that they would get the Mastercard exchange rate on international bank transfers but this is not the case. The Mastercard conversion rate is for withdrawing cash on an international ATM only - so would be limited to the withdrawal amount you can make.
PayPal and other P2P apps
P2P payment apps like PayPal can be used to make international money transfers to the recipient’s linked bank account, but they’re not very cheap.
PayPal fees for sending money average at around 5% per international transfer, with a markup of 3% - 4% on the exchange rate. The cheapest payment app that can be used for P2P transfers is Wise.
Cash
If necessary, cash is a possible payment method - but it’s likely you will pay a much higher exchange rate as you will need to go to a physical location to make the transfer (essentially the associated cost of running the location will be included in the exchange rate).
Generally, we would recommend sending money electronically unless absolutely necessary.
Recapping
Ultimately, the cheapest way to send money is through a dedicated provider where you will get:
A better exchange rate on your dollars
Lower fees on sending money
Quicker transfers
Ongoing support from an account manager (when opting for a currency broker)
Dedicated customer service support (when using an app or online transfer provider)
As mentioned, you should always search in line with the transfer you want to make to get a live cost and compare the best option at this moment in time.
