Ways to Send Money from Canada in 2022 – that will be the topic of today’s article.
Nothing written here should be considered as financial advice, nor a solicitation to invest.
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It is usually better to “kill two birds with one stone” and invest as an expat, rather than send money home to buy shares or a house.
Introducción
Expats in Canada who need to send money to loved ones or business partners residing in other parts of the world have a multitude of options.
They can avail the services of remittance companies, peer-to-peer service providers, or go through the traditional route of transferring money from bank to bank. Service fees, convenience, security, and accessibility are factors that come into play when deciding how to best transfer money from Canada. It would be reasonable to compare these options vis-a-vis each other to determine what method is best for your transaction.
Remittance Companies in Canada that Offer Cash Pick Up
Remittance companies in Canada, such as Western Union, MoneyGram, y WorldRemit, offer a fast way to send money from the country. At the same time, an account is often not a requirement to make use of their services. Because of this, individuals can quickly send and receive money without going through the lengthy application process often implemented by banks.
This will require senders to physically go to the remittance centers themselves in order to fill out the necessary paperwork. You must be ready with your valid ID, the complete information of the person you are sending the money to, and the cash that you plan to send. Similarly, the receiver must present a valid ID and the transaction reference number to withdraw the money at a physical branch of the remittance company.
However, as more businesses incorporate digital methods into their services, you may be able to send money without leaving your house.You just need to create an account and fill out the necessary information asked for. Then, the receiver can collect the money at any branch nearest to them.
It is important to note that WorldRemit only operates online. Nevertheless, the cash pickup option for recipients is available. This means that the sender does the transaction through their app, but the recipient can withdraw the cash from any of the local partners of WorldRemit in their country.
There are many remittance centers located throughout the country, making them easily accessible. They can even be found at supermarkets and pharmacies. Because of this, you or the recipient shouldn’t have to worry about where to go should you need their services.
This is the best option if the recipient needs to get cash fast and does not have a bank account. Remittance companies often transfer the money within minutes of completing the transaction. There is also no minimum amount of money that you can send. So, this option is suitable for small transactions.
Make sure that the person you’re transferring the money to is someone you trust. Scammers might make use of this service since it’s more difficult for authorities to track them once the cash has been released.
Pros
- A fast way to send cash to a recipient
- The money will be received as cash
- Only the receiver stated on the form can collect the money, making it less susceptible to fraud
Cons
- It requires physically going to the branch in order to send and collect money
- Senders should make sure that the company operates in the country of the recipient
Peer-to-Peer Service Providers in Canada
Peer-to-peer money transfer involves the use of an online platform to send and receive money directly to and from individuals. Their service fees are often lower than what can be expected from a bank-to-bank transfer. They usually charge 0.5 to 1.5%, compared to the 4% to 5% fee charged by a bank.
Expats in Canada can make use of CurrencyFair, Wise, OFX, XE, or Currencies Direct.
This provides them with the convenience of performing their transactions online. There is no need to visit a physical bank or remittance company just to send money to an individual residing in another country.
The sender must create an account on their platform to facilitate the transfer of funds. With some platforms, the recipient must also create their own account to be able to receive the money.
Apart from lower fees, the exchange rates are often higher compared to bank institutions. Because of this, the sender can save money by using these platforms. At the same time, the recipient can obtain the amount that was agreed upon by the two parties.
However, the recipient must wait for around 1-2 days before the money is credited to their accounts.
There is also a minimum amount required to make use of the platform, OFX. The money transferred should be at least $1,000. On the other hand, those who need to transfer smaller amounts can make use of the other service providers listed above. There is either no minimum or a smaller amount needed for the transfer of money on those platforms.
Pros
- Lower commission rates
- Higher foreign exchange rates
- It is convenient because transactions are done online
- Money can be sent to almost anyone anywhere in the world
Cons
- 1-2 days processing time
- Make sure to secure your accounts online to prevent falling victim to scams
Bank-to-Bank Transfer
In general, it is not recommended to send money through a bank-to-bank transfer. As stated, fees are often higher compared to other platforms. Exchange rates are also not as competitive. Because of this, it would cost more to send money to a recipient outside of Canada.
Additional charges may also be incurred, depending on the receiving bank. This means that the recipient may receive less than what was agreed upon between the two parties.
The processing time for a bank-to-bank transfer may not be as quick as other options. It often has to go through processes within both institutions to facilitate the transfer of funds.
Pros
- Security of money transfer since both parties need to apply for an account, which is subject to approval
Cons
- Higher service fees
- Lower foreign exchange rates
- Longer processing time
Regardless of what option you choose to transfer money from Canada, it is important to check if the platform is available in the country of the recipient. At the same time, there may be limits to the amount of money that can be sent outside of the country. This should be taken into consideration when fulfilling a transaction.
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