What’s Your Cheapest Online Money Transfer Option? | Finder Canada

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Comparing the cheapest online money transfer options

Transfer money safely and cheaply to family and businesses worldwide.

When searching for the cheapest online money transfer providers, your options are no longer limited to the time-tested companies that have become household names. Today, newer online providers are undercutting the competition on exchange rates, fees and speeds to earn your business — and get you a better deal.

How do I find the cheapest options for sending money online?

While your ideal option will depend on how much you’re sending, how you’re paying for the transfer and where you’re sending your funds to, the best ways to find the cheapest online money transfer options are:

  • Use a comparison table. Being able to see the prices of many different services at once will help you understand what fees exist and how to best avoid them.
  • Plan ahead. It is best to plan your money transfer as far in advance as possible, but if you need to make an emergency transfer, read on to find the best deal.
  • Don’t bet on your bank. Banks are great for domestic money management, but once you get into international transfers banks tend to offer worse exchange rates and higher fees.
  • Skip the bank altogether. When you want to send or receive money using cash, fees can add up, but we’ve put together some tips to help avoid high costs when possible.

Online money transfer specialists make a profit on your transfers in two ways: transaction fees and exchange rates. When comparing providers, look for low fees and exchange rates that are closest to the mid-market rate at the time of your transfer.

Send money internationally with WorldRemit

An online money transfer service with cash pick-up, bank account to bank account and airtime transfers available.

  • Choose how you want to send your money - via bank transfer, cash pickup or mobile money
  • Instant money transfers available

Compare cheap ways to send money online

Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
CAD 1 Same day CAD 0.00 0.79 USD
XE has fast transfers with no fees and a range of foreign currency tools. Go to site Show details
USD 150 1 day CAD 15.00 0.786 USD
Exclusive offer: Discounted exchange rates for your first and ongoing transactions. $0 transfer fee.
OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.
Go to site Show details
CAD 0 Within an hour CAD 3.99 0.791 USD
Use promo code 3FREE to send your first 3 transfers with no fee. Conditions apply.
WorldRemit sends money to 110+ countries for bank-to-bank deposits, cash pick-ups or mobile top-ups.
Go to site Show details
CAD 1 1 - 2 days CAD 45.00 0.794 USD
Wise uses the mid-market rate and transparent fees to help you send money in 45+ currencies. Go to site Show details

Compare up to 4 providers

Disclaimer: Exchange rates change often. Confirm the total cost with the provider before transferring money.

Are emergency money transfers always expensive?

Being able to transfer money quickly, easily and safely during an emergency can be tricky. But with an online specialist, you can often transfer money quickly at a cost that’s cheaper than your local bank.

Before you make your transfer, compare:

  • Exchange rates. Look for a rate that’s as close to the mid-market rate as possible.
  • Transfer fees. Fees can range from flat fees of a few dollars to up to $80 or more, depending on how quickly you need it there.
  • Transfer options. Can your recipient accept a bank account transfer or do they need to pick up cash right away?
  • Security. Make sure you can track your transfer through to receipt.

To get the best value for money for your international money transfer, compare the benefits and features of competing services before selecting a provider.

Your typical Canadian bank versus a money transfer provider

Let’s crunch the numbers: Sending $1,000 to Mexico

To put this into perspective, let’s see what a transfer with each of these options looks like. This table uses real fees and exchange rates and is current as of 12 April 2020.

Bank transferCash transferMoney transfer service
Fee$50 + additional correspondent bank fees$15.00$4.99
Exchange rate1 CAD = 15.8983 MXN1 CAD = 16.1601 MXN1 CAD = 16.6651 MXN
Transfer speed2-4 daysMinutesMinutes to several hours
Amount receivedMXN$15,103.39MXN$15,917.70MXN$16,581.94
  • Slowest and most expensive
  • Fastest
  • Best value

The bank option ends up being both slow and getting the least amount of money to your recipient. If you go with the specialist money transfer service, your recipient ends up with MXN$1,478 more. However, if speed is what’s most important, the cash transfer can’t be beaten for instant transfers.

Mid-market rate explained

While there’s no question that banks are a convenient option for sending funds from a bank account, overseas money transfers aren’t their specialty. With a bank, you’ll typically pay transfer fees of up to $50 and receive exchange rates that are anywhere from 2% to 5% or more above the mid-market rate, depending on the country you’re sending it to.

What’s the mid-market rate?

The mid-market rate is what your money’s actually worth on the global market compared to another currency. It’s the midpoint between worldwide supply and demand for that currency — and it’s the rate banks and transfer services use when they trade among themselves.

Use the mid-market rate as a baseline to compare against the rates provided by your bank or transfer service. With it, you’ll discover which companies offer the best rates.

Unlike your typical Canadian bank, an independent money transfer provider specializes in one thing: safely moving your money from Canada to countries around the world. This one focus means that they can offer more options — and stronger exchange rates — than a bank can.

Money transfer methods and costs infographic

How to send and receive money without a bank account

Send money without a bank account

  1. Money transfer paid in cash
  2. Credit card payment to an online transfer agency
  3. Send funds through a mobile wallet
  4. Purchase a money order and mail it

Receive money without a bank account

  1. Transfer funds to a money transfer physical branch for cash pick-up
  2. Spend a prepaid debit card received by mail
  3. Directly to a mobile wallet
  4. Cash a money order received by mail

Bottom line

Sending money abroad doesn’t have to be expensive, and fees will differ depending on what country you’re sending to. Countries where online money transfers are more common tend to have lower fees, while countries that aren’t as frequent for companies to send to have higher fees. If possible, plan in advance to secure the best rates for your transfer.

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