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It’s fairly common to send large amounts of money abroad from Canada. Popular methods include money transfer services, bank transfers, prepaid debit cards and crypto transfers, but the best way to send large amounts of money depends on your circumstances.
What are the best ways to transfer large amounts of money overseas?
You’ll find that money transfer services often offer the most competitive exchange rates for your transfer and charge lower fees than what you’d get at your bank. Some services like OFX and Currencies Direct specialize in transferring large sums of money internationally.
These types of companies exist to make the process of sending money overseas faster and more straightforward.
Pros
Often cheaper than transferring through a Canadian bank
Diverse payment methods including credit, debit, bank transfer and more
Many transfer services offer step-by-step guidance. Often, the process is entirely online.
You may be able to lock in your exchange rate and transfer later
Cons
Many options exist, so finding the best one may seem tricky.
Some services have complicated fees and exchange rates
Unlike Canadian banks and industry giants like Western Union, new services aren’t established and may need to be vetted.
We’ve compared popular money transfer specialists to help you save time and money. However, if you would rather compare providers yourself, you can use our comparison table to look at transfer speeds, fees and exchange rates. When you have made your choice, simply click Go to site.
Compare money transfer specialists
Disclaimer: Exchange rates change often. Confirm the total cost with the provider before transferring money.
2. Bank-to-bank transfers
Banks are typically more expensive than international money transfer services. But for small transfers, the ease of using your local bank might be worth the fees and unfavourable exchange rates. For large transfers, these costs add up.
You have 2 choices when sending a bank-to-bank transfer:
Wire transfer. To send a bank wire transfer, you’ll need to visit your bank in person and provide your recipient’s contact info and account details. Fees often start around $30, and it may take several business days up to a week or more for funds to arrive. But wire transfers are widely regarded as the best way to send large amounts of money when it comes to safety.
Electronic funds transfer (EFT). Often cheaper than wire transfers, EFTs are made via a network of interconnected banks and financial institutions.
Pros
You already trust your bank with your money
You can typically initiate EFTs online, in-person or by phone
You don’t have to trust any companies with your money
Cons
More expensive than other options
Typically far slower than other options
Have to pay with funds that are already in your bank account. Credit cards are not an option.
Must visit a branch in person to send a wire transfer
3. Cash Pickup
Sending money for cash pickup is a convenient way to make an international money transfer, particularly if you or your recipient is under or unbanked. There are several companies that offer cash-to-cash transfers including Ria, MoneyGram and Western Union. Finding the right company for your transfer is important, so make sure to compare your options.
Pros
Recipient doesn’t need a bank account
Sender doesn’t need a bank account
Cash transfers often transfer faster than bank-to-bank transfers
Cons
Most cash transfer services have a maximum sending limit
Large amounts of cash will have to be picked up by the recipient, which could be dangerous.
Often comes with higher fees than transfers funded by bank account or debit card
4. International bank draft
An international bank draft is issued by a bank on behalf of the payer. It allows another bank, typically in another country, to draw funds directly from the issuing bank. The exchange rate is determined at the time of sending, eliminating the need to speculate on future rates.
Except for the foreign currency involved, sending an international bank draft is like sending a bank draft in Canada.
Pros
Accepted in many parts of the world
Usually cheaper than an international bank wire transfer
Can only be cashed at a bank by the person listed on the international bank draft
Cons
Requires physical delivery between countries, which adds to the delivery time
Difficult and time consuming to replace if lost or stolen
5. Prepaid debit cards
With some services, you can send funds via a prepaid debit card. The sender loads a prepaid debit card with cash funds. The recipient can then withdraw money using the prepaid debit card. Alternatively, you can transfer money from the prepaid card to a bank or card account.
Prepaid debit cards tend not to come with transfer fees. However, you’ll most likely have to pay an activation fee or monthly service fee.
Pros
Relatively cost effective compared to bank transfers
Recipient doesn’t need a bank account
You can lock in a set exchange rate
Cons
Most prepaid debit cards carry an activation fee or a monthly fee
There may be a limit on how much you can load onto the card
6. Cryptocurrency
If you hold cryptocurrency, you can send it to a wallet anywhere in the world. Many cryptocurrencies will also let you trade cryptocurrency for fiat currency (a government-issued currency like Canadian dollars or euros). This means it’s possible to exchange CAD for a cryptocurrency like Bitcoin, then trade your cryptocurrency for euros.
However it’s not a simple process, and you’ll likely encounter percentage-based fees at each step, which can get expensive. Here are the key steps to take when transferring money overseas using bitcoin:
Transfer funds to an online cryptocurrency exchange.
Use your local currency to buy cryptocurrency, which goes into a digital wallet.
Sell your cryptocurrency for a foreign currency.
Withdraw your funds from the exchange platform.
Pros
You can send money directly to your recipient’s cryptocurrency wallet address, removing the need for companies as intermediaries.
Your transaction can’t be canceled
Cons
Requires a lot of technical know-how to avoid errors
Prices can be volatile, so although you may save money by avoiding fees, you could lose it if the price of the cryptocurrency you’re using as an intermediary drops.
Depending on the route you use, there may be many fees to pay.
Frequently asked questions
There are several ways that you can transferring large sums of money internationally. Compared to Canadian banks, international money transfer services tend to offer more competitive exchange rates and lower fees.
Yes, it's legal to transfer large amounts of money. However, money transfer services must follow Canadian regulations to guard against fraud and money laundering. This involves collecting information on senders and reporting suspicious transactions to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
In Canada, there is no maximum limit to how much you can transfer overseas. However, recipients may be subject to limits and taxes on incoming transfers depending on the rules in their countries.
One of the fastest ways to transfer money internationally is to use a cash pickup service. They allow your recipient to have almost instant access to the money you have sent, without the need for a bank account.
From a safety standpoint, the best way to send large amount of money is through bank wire transfer, but this is expensive and time consuming. Online money transfer services are typically less expensive and quicker.
The rules around bringing large sums of cash to another country depend on the country you're visiting. Check the customs guidelines in your destination country before you travel.
Bear in mind that carrying physical money is risky, as you can't easily recover lost or stolen cash. Instead, consider sending an electronic money transfer and keeping a small amount of cash on hand for emergencies.
Kevin Chen is a personal finance expert and a former writer at Finder. His expertise has been featured in CNN, U.S. News and World Report, Lifehacker and CreditCards.com, among other top media.
Send an international money transfer to someone without a bank account. Get it there instantly and they can pick it up in person, in cash. Get quotes now.
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