Best ways to send money from Canada to India

In this article we discuss different ways to send money from Canada to India.

For any questions, or if you are looking to invest as an expat, you can contact me using  this form, or use the WhatsApp function below.

It is often better to set up portable investment solution which can be taken with you globally if you move, especially if you are an expat, as opposed to sending money home to invest in real estate or stocks.

Introduction

Business is not the only reason why people transfer money abroad. We live in an increasingly global world, with people moving countries and continents for jobs, education, marriage or even just because they think they might prefer to live somewhere else than their current country. 

When a friend needs a little cash during a vacation or a family member needs to pay rent back home, they may turn to you for help. An international money transfer can give them the funds they need to get by, but how you decide to make that transfer will impact how much you pay — and how much your recipient receives.

Below are listed the most common reasons of transferring money overseas.

Buying property overseas

For obvious reasons, purchasing a holiday house is a very common thing. If you have a villa of your own in your favorite holiday place, you can turn it into a true home away from your homeland.

Paying overseas tuition fees

If one of your young relatives is heading to one of the top universities in the UK or America, and you want to support them by paying their tuition fee, then finding the cheapest and most convenient way of paying that fee is simply necessary.

Overseas investments

If your business is doing well enough to establish a base in another country, it’s imperative that you find the best way to send money abroad to them. 

Sending money to friends or family

If you’ve moved away for work, then you might want to send money directly to friends or family members in your home country.

Paying for overseas travel

If you go on a long holiday, you can find that the money you brought with you runs out faster than you planned, and friends and family will help you out without subjecting yourself to ATM fees overseas.

Paying for work to be done

You may be employed as a freelancer or paying workers’ salaries in another country. Their salaries should not cost you more than you have budgeted for either way.

Now, after analyzing the reasons for making money transfers overseas, let’s move to the actual ways of international money transfer – specifically from Canada to India.

Money transfer methods

Before you compare money transfers, it is helpful to make a comparison of remittances and settle on the form that best suits you. But when you compare the remittance rates, it is important to know the options available, what they give and who they best fit. 

Conventional methods of money transfer like going through your preferred bank are not recommended due to variety of reasons such as hefty commission fees, inconvenient exchange rates, slow speed of the transfer and so on. 

Below is a quick overview of the process of transferring money from Canada to India through a bank.

There are 4 main types of bank transfers: 

  • account to card
  • card to account
  • account to account
  • card to card

One of the mentioned procedures above can be organized variously: in person, at a bank branch, remotely (via the Internet), in the personal account of the bank. 

S.W.I.F.T is the most widespread system of bank transfers today. Through this channel, any money transfers, including international bank transfers, are carried out between all states.

The speed of making a transfer of funds is just the time that is required to complete transactions for sending notifications of payment between banks. In this case, the nominal value of funds is debited from the sender’s bank account and credited to the recipient’s bank account.

But as already mentioned, transferring money through your bank may be inefficient in terms of fees, time, and exchange rates.

Actually Canada is a little specific country and not all the best money transferring companies support internationals transfers from Canada. But anyways, here are some of the best and reliable money transferring companies, that we already know and all of them can assure you a safe transfer from Canada to India.

  1. Remitly

Remitly is a web-based provider of money transfers that allows you to quickly send money from the United States to over 50 countries.

Ramitly is focused on easy and fast international money transfers for expats to the developed world looking to send money home.

They do a good job of keeping costs low, especially when you consider the convenience, speed, and ability of the recipient to receive cash. The reviews we found show that customers are very satisfied.

Their closest competitors are Western Union and WorldRemit, which we have also reviewed. But that doesn’t make them the best for everyone, for sure many complaints were found while reading the customer reviews.

While you can send both very small and relatively large amounts, the sweet spot for Remitly is when you need money to arrive very quickly and you want options like simple payment and cash withdrawal.

For pickup, they partner with shipping and distribution providers in many countries (banks, cash pickup or delivery services) so that your family can choose multiple ways to receive funds.

With Remitly, you can transfer money from these 16 countries: UK, USA, Australia, Canada, Ireland, Germany, France, Italy, Spain, Austria, Belgium, Finland, Netherlands, Norway, Singapore and Sweden to over 50 countries. Remitly is also available in up to 100 currencies, which is another advantage for the company. 

Pros:

  • Easy and fast transferring option
  • Two different ways to send money: express and economy
  • Fund tracking available for both senders and recipients
  • Receive money in different options, such as bank transfers, pick up points, home delivery, and mobile wallet transfers
  • A few payment options available, such as credit card, debit card, or bank transfer
  • In case the estimated delivery is being delayed, the fees will be refunded
  • Cash pickup possible at more than 140,000 locations worldwide

Cons:

  • Restrict transfers between 16 sending countries
  • Fees can be higher compared to other money transferring companies
  • There is a limit of $2,999 on all new accounts, and you’ll need more ID to increase daily, monthly and 180-day sending limits
  • The speed and the amount of fees can differ, they depend on the country you send money
  1. MoneyGram

MoneyGram is one of the largest and oldest money transfer companies in the world. This very well trained service has a huge number of agency locations scattered all over the world and all kinds of presence in at least 200 different countries.

The company offers a wide range of services, such as sending and receiving cash, as well as the possibility of receiving money at retail outlets.

While it is used by a large number of people around the world, MoneyGram also seems to attract its fair share of detractors and negative reviews.

However, anyone who wants fast money transfers, especially during the coronavirus, should find it worth investigating. Competitors’ products include WorldRemit, Azimo, Venmo, Western Union, PayPal, and Zelle.

The MoneyGram online service allows you to send and receive money in over 20 countries via the MoneyGram mobile app using a debit card, credit card, or bank account (US and Canada only).

In some countries, your money order may be credited to the recipient’s bank account, mobile wallet, or prepaid card; or even deliver in cash directly to the recipient’s home!

MoneyGram’s extensive network of dealerships and its availability both online and offline make it a very convenient service that meets the needs of most people.

Its size and long track record also ensure that your money is safe when in the hands of MoneyGram.

The downside to the MoneyGram service, however, is that transferring cash abroad can be costly, especially for some countries, as MoneyGram often charges higher fees and lower exchange rates than those offered by specialized online providers.

Pros:

  • Available almost everywhere, has a global network
  • Is super easy in use
  • Flexible delivery available, such as cash pickup
  • Funds available almost instantly
  • Fast delivery, including same-day transfers to bank accounts in some countries

Cons:

  • Can be expensive compared to other transferring companies
  • Transfer limits are very low, and not convenient
  • A lot of bad reviews on customer service
  • Outside the US and Canada, you can only pay with a debit or credit card, or in cash at an agent location
  1. Transfer Wise

The company is mainly focused on making global transfers between banks. TransferWise is cheaper than a regular local bank to send money abroad and is transparent about the exchange rate and applicable fees. 

There are 22 currencies available to send and receive, although you can send money in 27 more foreign currencies.

TransferWise may not be the best choice in some circumstances for sending money overseas, but it will be the right choice for many, especially when it comes to saving money on bank charges.

TransferWise has headquarters in the United Kingdom, the United States, and Estonia (including Europe).

In addition to their international money transfer service, once you sign up, you can use the TransferWise limitless account card, which allows you to accept money in Pounds Sterling, Euros, US Dollars and Canadian Dollars and store up to 40 currencies, much like having a local bank account in the US, UK, European countries, even Canada and it’s easy to finance. Canadians will be able to move money from more to and from over 60 countries including India, with TransferWise.

TransferWise is extremely transparent, avoids hidden fees associated with other competitors, and clearly defines what you pay for, which means you can easily see what transaction fees will be associated with a bank transfer.

Each transaction is charged a fee based on three factors: the amount you send, the method you pay for the transaction, and the average market exchange rate.

If you send a token amount of money, you will always pay their minimum commission. It is cheaper than fees charged by other services. This nominal amount is $ 3 for a transfer up to $ 400. For anything beyond this, the commission is 0.5% of the amount sent.

Transfer Wise is mainly one of the most popular international money transfer companies that can offer you super low fees and a transparent action. But anyways, let’s see other companies too, and the next one will be Currency Transfer.

Pros:

  • Very simple and easy to use.
  • Completely open and transparent about how much they charge, so there are no surprises.
  • Transfer fees are low, especially if you’re sending smaller amounts overseas.
  • They use the mid-market rate, so you get to the best exchange rate.
  • Access to the multi-currency account and Mastercard debit card.
  • Provide services to both individuals and businesses.

Cons:

  • TransferWise doesn’t support all currencies or provide transfers into all countries.
  • You can only send money to someone else’s bank account, which is a challenge if the recipient doesn’t have access to one.
  • Recipients can’t get their money as a cash pickup, have it delivered, or have it transferred to a mobile wallet.
  • For larger amounts of money (more than $10,000), a specialist foreign exchange provider might be a little cheaper.
  1. PayPal

PayPal is the largest online payment company in the world, with over 250 million active account holders worldwide and over 7.5 billion transactions per year, valued at over $ 450 billion. Chances are that you and your recipient already have a PayPal account and therefore using PayPal for your international transfers should be easy and convenient.

It’s one of the fastest and most secure ways to send and receive payments over the Internet without disclosing your financial information.

With PayPal, you can send money from over 200 countries to PayPal accounts in over 75 countries and 25 currencies. The recipient can then use their PayPal balance to transfer funds to their bank account or to pay for goods and services online.

With PayPal you can:

  • Buy products from thousands of online stores.
  • Pay for purchases online using a PayPal account or bank card in any of the supported currencies.
  • Make quick payments without specifying payment and delivery information.
  • Receive payment for items sold through eBay, your own website, forums, or online classifieds.
  • Send funds to friends and family with ease.
  • Use PayPal services directly from your mobile phone.
  • PayPal is available for connection to legal entities and individual entrepreneurs.

You will need a corporate PayPal account to accept online payments.

Sellers pay a commission from 2.9% to 3.9% of the cost of the goods + a fixed amount of 0.3 USD for the operation. The exact amount of commission depends on your sales volume and whether you sell products domestically or overseas. 

Below let us list some pros and cons of using PayPal.

Pros:

  • Easy to setup and use
  • You do not need a merchant account
  • Your clients, friends or family do not need a PayPal account to pay you
  • You can create and send invoices right through your account
  • PayPal’s fees are less than many merchant accounts (currently 2.9% + $0.30 USD for debit and credit card purchases)
  • You can set up recurring payments
  • You can integrate PayPal with a number of shopping cart systems
  • High security

Cons:

  • PayPal’s Seller Protection policies do not cover digital goods
  • There are hefty fees for chargebacks
  • You are limited in terms of use and are subject to account suspension at any time which can result in frozen funds for months
  • It can take four business days for withdrawn funds to clear in your bank account
  • There are a number of people who refuse to use PayPal, which may result in lost business
  • It can be difficult to contact PayPal’s customer service department
  • PayPal is not accepted everywhere. This means you can’t always use this product for purchases
  1. World Remit

Better rates and lower fees can often be found with WorldRemit. In addition, the WorldRemit app and website tell you in advance what exchange rates and fees you will pay without first registering. 

This makes it easy to compare with other companies to see if you are getting the best deal.

One of the main disadvantages of WorldRemit is that you cannot pay with cash, but its global network supports receiving cash in many countries around the world.

Other shipping options such as mobile airtime top-up, bill payment, and door-to-door cash delivery complement this service for some shipping destinations. You will also often be able to find promotional codes to get a better deal if you are purchasing an item for the first time.

Transfers via WorldRemit will add both a commission and a markup to the average market margin. Transfer fees for WorldRemit vary, but the standard fee for sending from Canada to most countries is $ 3.99. 

Unlike many competitors, WorldRemit offers the same exchange rate no matter how much you send.

Pros:

  • A very simple website and a quick account set up
  • Competitive rates, mostly much better than what you’d find your bank
  • No minimum amount set for a transfer
  • 24/7 support available in nearly 20 countries worldwide
  • Can easily get an accurate quote for your transfer using their online calculator

Cons:

  • A maximum transfer size of $10,000
  • No offer of support for businesses
  • The transfer fee is not fixed, so it may differ along with the currencies
  • No offer of financial advice
  • Not all transfer methods are available in all countries. For example, you cannot organize cash pick up when sending money to India
  1. Western Union

Western Union is one of the oldest, largest and leading money transfer providers in the industry with over 550,000 locations in over 200 countries and territories. 

Unlike many providers, Western Union offers both domestic and international transfers; the ability to send and receive cash abroad quickly is his specialty.

Customers can also send money online via the Western Union website and mobile app to bank accounts, agent offices and mobile wallets.

With Western Union, money can be received in more than 125 currencies and in several ways: in cash from an agent or through an ATM, to a bank account or to a mobile wallet.

Money is often available within minutes of being sent. You can pay by money order in cash, debit or credit card, or from your bank account. For some countries there are also bill payment services.

Money transfer limits vary depending on which service you choose and your transfer history, as well as the location of the sender and recipient, payment and payout methods.

Western Union is currently embarking on a massive digital expansion to expand the number of countries that provide digital money transfer services, such as sending money from or to a bank account, mobile wallet, or through the Western Union app.

They are also expanding the number of countries in which you can use their mobile app. Digital capabilities are already widespread in the US, Canada, most of Europe, Australia and New Zealand, but they are rapidly expanding their digital reach in Latin America, Asia and the Middle East.

Western Union allows millions of people to send money to family members for basic living expenses, education, healthcare, or starting a business. Western Union also serves businesses through its Western Union Business Solutions division.

Pros:

  • A perfect option for people who need to send or receive cash
  • Low minimum transfer amount of $1.00
  • Option to send money in minutes
  • Transfer to a wide range of countries
  • Western Union supports 200+ countries and has over 550,000 agents on its network
  • 24/7 customer service

Cons:

  • Not the cheapest option among the mentioned above options, the fees depend on transfer location
  • Not all channels are available in every country
  • Exchange rate margins are not transparent
  • Difficult to compare costs because the fee and exchange rate can vary significantly
  • Maximum transfer limits, which is $2,999.99 per online money transfer
  • Using the online platform is difficult and not very clear

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Adam Fayed financial consultant WhatsApp