There are several options to send money abroad from Canada, and the best method depends on how much you want to send and if you need the money now. For instance, if you only have a small amount of money to send abroad, then a money transfer app is the best option. But, if you are sending a large amount for a relocation, holiday house purchase, or for a business you will be better of with a currency broker.
It never pays to send money abroad with a bank wire transfer
Bank wire transfers are the traditional method where you can transfer funds directly from your Canadian bank account to an overseas bank account. It is a secure and reliable option, but it can be relatively expensive, especially for smaller amounts, as banks often charge fees for international transfers. It is best to avoid sending money abroad through your bank as you don’t get any control over the exchange rates and it is very expensive.
Use an online money transfer app for small amounts
Several online money transfer services, such as TransferWise (now Wise), Remitly, PayPal, Xoom, and WorldRemit, offer convenient and cost-effective options to send money internationally. These platforms often provide competitive exchange rates and lower fees compared to traditional banks. They allow you to transfer funds online or through mobile apps.
Remitly Review
Name: Remitly
Description: Remitly is a low-cost money transfer app that was founded in 2011. Since then it has grown to service over 4.5 million active customers transferring money to 13 different countries. Remitly went public in 2021, and it’s shares are listed on the NASDAQ exchange valuing the company at around $4.9bn.
Summary
Remitly is a cheap and easy way to send small amounts of money abroad. Especially if you are a new customer, as you get better exchange rates on your first £1,000 sent abroad.
Pros
- Cheap
- Easy
- Safe
Cons
- Limited FX analysis
- Limited educational articles
- Online only
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Pricing
(4.5)
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Market Access
(3.5)
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Online Platform
(4.5)
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Customer Service
(4.5)
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Research & Analysis
(2)
Overall
3.8Wise Review
Name: Wise
Description: Wise is a low cost international money transfer app that helps people send money abroad for much less than it would cost to do it through their banks. Wise was launched as Transferwise in 2010 as a peer to peer currency network, but has since grown to provide money transfers to over 15 million customers sending more than £9 billion a month.
Are Wise a good money transfer app?
Yes, Wise is one of the cheapest and easiest ways to send money abroad. Highly recommended.
But in a nutshell… Should you use Wise? Yes. Are they cheap? Yes. Is it easy to use? Yes. Are they safe? Yes.
The only reason not to use them really, is if you already bank with Starling whose fees are pretty similar and don’t want another app on your phone…
Pros
- Cheap
- Easy
- Fast
Cons
- Phone support hard to find
- Only suitable for smaller transfers
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Pricing
(5)
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Currencies
(4.5)
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Online Platform
(4.5)
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Customer Service
(4)
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Research & Analysis
(3)
Overall
4.2Currency Brokers are best for large international money transfers
Foreign exchange (FX) brokers specialize in currency exchange and international money transfers. They can often provide more competitive exchange rates compared to banks. Examples of FX brokers include OFX and Currencies Direct. However, it’s important to research and choose a reputable broker with competitive rates and good customer reviews.
Currencies Direct Review
Name: Currencies Direct
Description: Currencies Direct is a specialist award-winning currency broker that can help you send large amounts of money abroad. They were founded in 1996 and are now part of a group that processes around £10bn in international money transfers per year.
Are Currencies Direct a good currency broker?
Yes, Currencies Direct offer a good service for large international money transfers. They are a well-established and competitive currency broker for buying a property abroad or for international business payments at bank-beating exchange rates.
Pros
- Great for large currency transfers
- Get a dedicated account executive to help with transfers
- You can send money over the phone or do transfers online
Cons
- Better for large transfers
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Pricing
(4.5)
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Market Access
(4.5)
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Online Platform
(3)
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Customer Service
(4.5)
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Research & Analysis
(4)
Overall
4.1OFX Review
Name: OFX
Description: OFX is a leading currency broker offering currency services to more than 170 countries around the world. Originally known as OzForex, it was launched by Matthew Gilmour in 1998 as an information only website. Since then, it has grown rapidly handling more than AUD$2000bn transfers for more than a million individual and business customers worldwide.
Is OFX a good currency broker?
Yes, we rate OFX as a very good currency broker as they offer discounted exchange rates, personal service for individual buying a property abroad of for businesses needing more complex services like integrated Amazon payments or currency hedging strategies.
Pros
- Bank beating exchange rates
- Personal service and good tech
- Currency hedging solutions
Cons
- Better for larger transfers
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Exchange Rates
(4.5)
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Available Currencies
(4.5)
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Online Platform
(4.5)
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Customer Service
(5)
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Research & Analysis
(4)
Overall
4.5
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
You can contact Richard at richard@goodmoneyguide.com
