How to send money to Canada using a money transfer service or foreign exchange broker to a Canadian bank account.
Transferring money to Canada
When transferring money to Canada either regularly or now and then, there are several ways you can guarantee you get a fantastic Canadian dollar rate, excellent service and also ensure you are transferring money to Canada safely.
Ways to Send Money to Canada
- Bank Transfer – Many will certainly choose to move their money straight from a financial institution current account. Usually, the exchange rate to transfer money to Canada will be much less competitive than the currency exchange rate. Offered by a foreign exchange broker. On top of this, you may have to see your local branch to transfer a substantial quantity. When sending out money to Canada through a bank transfer, you will certainly be charged a transfer fee of around ₤ 10-30 or local currency equivalent.
- Debit Card – If paying for products online or through an e-tailer, you may have the ability to pay using a debit card but are unlikely to be offered a terrific CAD exchange rate when sending money to Canada and making use of a debit card. You may likewise be charged an admin fee or transfer cost. Those seeking to transfer money to Canada to buy a residence or pay a legal expense for a Canadian property acquisition might be required to send out money to Canada via a transfer, meaning they will require to move transfer funds either by financial institution or, ideally, foreign exchange provider. In many cases, an fx broker will accept a debit card as repayment, enabling you to enjoy the convenience and acquire a much better CAD currency exchange rate.
- Credit Card – Ideal for renting a property in Canada to get financial recourse and the bank’s guarantee. Not great in terms of the exchange rate, but sometimes air miles or bonus points can offset this.
- Swift/SEPA – Swift payments relate to money transfers outside the EU. Within the EU and also, therefore, not applicable when sending out money to Canada is the SEPA settlements system. As a result of Canadian dollar transfers not being part of the quick SEPA system, money transfers to Canada can take several days longer than transfers within the EU.
Required Bank Details To Transfer Money
Identification – To send money via bank transfer, you will need 1-2 forms of a photo ID and need to have your bank card in your possession when visiting the branch. If you can send cash to Canada via your online bank account, you might need a card reader, logins, etc.
If using a foreign exchange provider, all of your documents will be stored when you opened the account. They will ask you a few simple questions to validate the account via phone. Their online systems are very similar to those of a bank, just with better online exchange rates pricing.
Swift Code – A Canadian Swift code will begin with a four-letter financial institution code, followed by a two-letter country code, then a 2-letter area code, concluded by a 3-digit branch code. Canada does not make use of the IBAN system.
Time Needed To Transfer Money to Canada
- Typical time – For a foreign exchange specialist to receive, convert your local currency to the Canadian dollar and transfer your money to a Canadian bank account, you should allow between 1-3 working days. Occasionally the beneficiary bank makes take a while to process and allocate funds. If using a retail bank, you should allow for 1-2 days more as there processing is typically slower.
- Same-day transfer: If funds are located in your foreign exchange transfer account, you have a chance of transferring your CA dollars to Canada and them clearing within a day. A same-day transfer to Canada is extremely unlikely when using the swift payments system. It can take the recipient bank account 1 day or more to allot funds. Financial institutions will certainly take a lot longer, normally 2-4 working days.
Cost Making a Money Transfer Canada
- Transfer Fees – A financial institution will generally charge anywhere between ₤ 10 -40 to move your money to Canada. For the most part, foreign exchange brokers won’t charge a transfer fee. All included on Foreign exchange live operate on a fee-free basis.
- Commission – Commission rates charged by banks vary from bank to bank but are invariably uncompetitive. A broker will typically be able to save between 1-4% when sending money to Canada.
- Exchange Rate – Financial institutions will generally utilise a ‘day currency exchange rate’, which will be established when the branch opens. To cover any market changes with the Canadian dollar, a healthy margin will be added to cover daytime volatility and safeguard revenue on the trade. On the other hand, Fx brokers work from real-time Canadian dollar rates, enabling you to benefit from favourable trends and seek support if the rate works against you.
Fees To Receive Money in Canada
Canada takes on the swift settlement service, which, when compared to SEPA, can be costly and slow-moving. If you send out money to Canada, you are likely to be billed an intermediary cost or charge. An fx broker will commonly absorb the fee, yet banks will bill or deduct.
Limits On Money Transfer To Canada
Clients should not be restricted on how much money they can transfer to Canada on the proviso you or the business can verify the CAD cash transfer. If your foreign exchange provider authorises the money transfer, there is no limitation on just how much you can trade.
Usually, if a transfer surpasses ₤ 500,000+ or local currency comparable, your foreign currency broker can request a copy of a financial statement to verify your capability to fulfil the CAD currency trade. Furthermore, they may request records to show the reason for the transfer (e.g. Canadian residential property acquisition).
Transfer Deposit to Open a Canadian Bank Account
Worldwide banks or international money broker will be happy to assist with transferring funds to a brand-new Canadian dollar checking account. Just make certain any documents, along with your Canadian account info, are to hand; your bank or broker can, after that, assist with your bank deposit transfer and send your money to Canada.
Canadian financial institutions will typically expect you to credit your account rapidly. Some financial institutions open the account with zero deposit and also usually bill CA$ 11 per month to maintain the account.
Do Foreign Exchange Brokers Transfer Money to all Banks in Canada?
Providing the institution is correctly regulated in Canada. You have the correct bank or beneficiary details for the Canadian account you wish to credit. There will be no issue. Just ensure you have the bank details to hand, inclusive of the swift code.
Safely Send Money to Canada
Luckily, foreign exchange brokers know international settlement fraud exists and are diligent in your place and run recipients through their systems and flag any dubious beneficiaries.
- FCA – Always be certain your UK foreign exchange broker is the financial conduct authority authorised. They should never be unwilling to share their number on the FCA’s register, which should be featured on their web site.
- Guarantees – Whilst a broker won’t offer guarantees, their accounts should be held with tier 1 banking partners. All funds should be allotted to segregated accounts, with funds kept separate from their working capital, which means if something was to happen to the foreign exchange company, you could reclaim the funds directly from the bank.
- Protection – Credible foreign exchange solutions comply with considerable anti-money laundering procedures to guarantee they are solely looking after the transfers of commendable clients and businesses. This is continued when they exchange money and also transfer funds to Canada. To ensure standards remain high, money exchange brokers may request information on transfers whose beneficiaries look suspicious. Money broker’s FX trading systems are electronically secured. They furthermore make use of high degrees of internet protection to avoid the opportunity of their customer’s details being pinched.
- Fraud – Despite these preventative procedures, fraudulent money transfers can occur within the international transfers’ market. You can, however, take measures to limit your chances of ending up being a transfer scam victim. Never send your password or security logins over email or be pressurised to make a money transfer by a foreign exchange broker. Ensure interaction with your broker is from their company email address. If you are phoned unexpectedly by an unidentified member of the broker’s team or new currency account manager, negotiate to call them back to guarantee they are an employee of the foreign exchange specialist you work with.
Reasons to send money to Canada
- Bills – Your Canadian residence or company will certainly have normal running costs and payments. These can include local state real estate tax, renovation expenses, or energy costs. An Fx broker will be more than happy to organise regular transfers to cover your Canadian account and look after any money transfers to Canada.
- Loans – If you have been lent money from a friend or member of the family in Canada, you might want to clear the financial debt if CA dollar rates move in your favour. On the other hand, if you have a home mortgage on your Canadian property and the CA dollar rate remains in your favour, you might consider sending money to Canada to clear part of your CAD domestic or business building home loan.
- Family – Birthday parties, as well as family gatherings, are never far away. Your foreign exchange brokerage account can be a great means to send out financial presents to family members in Canada.
- Property – When the CA dollar currency exchange rate jumps in your favour, you could think about capitalising and renovate or improve your home in Canada.
- Inheritance – Regretfully, various people experience loved ones passing away overseas. You could need to repatriate inheritance to Canada. A broker can sensitively handle the transfer.
- Car – If moving to Canada, you may want to rent out or buy a vehicle to commute or discover other areas of the country.
- Holiday – If renting a residence or condominium for a trip to Canada, your foreign exchange provider will offer a better CAD fx rate than your bank or debit card.
- International wholesalers – When purchasing oversea products or materials, you can use services provided by a foreign exchange provider to alleviate FX risks associated with purchasing products from wholesalers that market in CAD.
Foreign Exchange Brokers
Considering the services of a credible foreign exchange specialist is the best way to save money when sending money abroad. Savings between 1-4% are feasible, significant on regular transfers and Canadian property purchase money transfers. They can also provide you with several currency solutions to maximise the amount of currency you receive in Canada.
Finding a reputable Foreign Exchange Broker
Clients can compare the offerings of transfer services and foreign exchange brokers in many ways when they need to transfer money to Canada.
- Regulation – always ensure the foreign exchange provider you use is regulated. In Canada, for example, brokers must be authorised by the FCA (financial conduct authority).
- Length of time in business – typically indicating knowledge of the market, number of clients they’ve helped, stability in the market. They are most likely to have helped many other clients transfer money to Canada and deal with many different scenarios.
- Transfer fee or no transfer fee – especially worth considering when the payments being transferred to Canada are small. A transfer fee can typically outweigh the advantages of sending the money to Canada via a bank or broker, even if the rate offered is competitive. All brokers promoted on Foreign Exchange Live work on a fee-free basis.
- Online transfer, telephone transfers or both – online Apps are great for small transfers to Canada. Recourse can be slow if the money goes astray. Customer service, when dealing solely online, can vary. Much of this service is via a chat/text box or email. An established foreign exchange provider will operate both an online and telephone dealing service. Meaning you speak directly to an account manager who will be assisted by a back-office team or customer service division.
Find The Right Broker To Transfer Money To Canada
Specialists such as Moneycorp and Rational FX have vast experience in advising and assisting clients all over the globe and saving them thousands of pounds in the process.
- Customer Service: Banks are cumbersome and hard to contact from overseas. Transfer apps can be convenient for smaller payments but don’t offer prompt customer support if an issue arises. Foreign exchange brokers offer a consistent service. All clients receive a personal account manager with a direct email address and phone number to enable easy contact and customer service if required.
- Safety and Security – All top foreign exchange brokers will hold client funds in segregated accounts. All transactions are conducted following the FCA regulations and guidelines. We strongly advise you to check with your broker on the exact details.
- No Expensive Fees or Charges – Depending on the bank, for each transaction, it could cost anywhere from £10 to £4o or currency equivalent. A foreign exchange specialist will process your transfer to Canada with no transfer fees and a small margin (or spread).
- Better Exchange Rates – A bank will, as a rule, be making a spread of between 2-6%, whereas the rates on offer from leading providers will be around 1%. Once your trade is executed, you will be provided with a deal notification showing clearly the base currency amount and the number of Euros purchased.
Foreign Exchange Contracts
A foreign exchange specialist offers several supplementary services not available in banks or on many money transfer apps. These include:
- Spot contracts – Arranging a transfer and agreeing on a rate, and sending the money to Canada shortly after.
- Forward contracts – fix today’s exchange rate for payment up to 2 years in the future. Guaranteeing the cost of your purchase and avoiding foreign exchange volatility.
- Stop-loss – If your currency pair is trending lower, a stop-loss protects your currency from depreciating too much, and the currency is traded automatically when it hits the agreed level.
- Firm order – target a rate superior to the current foreign exchange market rate. Once the desired exchange rate is reached, the currency is purchased day or night automatically.
- Option contract – as with the forward contract and having the ability to opt for a superior rate is the market rate improves. Typically for businesses rather than private clients.
- Regular international transfers – A payment plan to send money overseas regularly.
Documents needed for a foreign exchange broker account
The application to open your foreign exchange account can be completed within minutes. The first step is to apply online, giving personal details and a brief overview of transfer needs. Once complete, you will typically need to supply the following to get your account approved
- A valid form of photo ID
- Recent utility bill or address proof (less than 3 months old)
List of Foreign Exchange Brokers
- Boutique brokerages such as Newbridge FX offer tailored services to cater to their clients’ needs and work tirelessly to limit their FX risk.
- Midsize brokerages such as Rational FX operate both corporate and private client operations, focusing on key markets such as France and Spain.
- Large multi-Geographic operations such as Moneycorp operate in multiple jurisdictions. They have many local offices to best serve their global clientele.
Arranging a transfer to Canada
When you’ve chosen which currency broker you want to work with, arranging a transfer to Canada won’t take long at all. The transfer can be made online or over the phone with your broker. Agree or select a Canadian dollar exchange rate online or over the phone with your broker and supply the Canadian bank details, including the swift details. You’ll then have to send the money to the broker in the local currency to pay for this transfer.
Large Money Transfer to Canada
When making larger money transfers to Canada, timing is key. Exchange rates move quickly, and small variations on large transfers can make a vast difference. For example, if someone exchanges £1000 and the rate moves 3%, the difference will be £30. For example, on a larger transfer to Canada, an exchange of £100,000 to Canadian dollars, a 3% variation will be £3000. Meaning if the currency exchange is timed well, clients can potentially save money and receive more CAD.
Instant Money Transfers to Canada
Several foreign exchange providers offer instant money transfer services and will be very happy to transfer money immediately to Canada. The transfer fees they charge will be comparable to banks by the rates are very uncompetitive. Their Canadian dollar rate will be comparable to the exchange rates offered at a train station or airports in many cases.
When should I use an Instant Money Transfer Service?
Instant money transfer services should only be used in a crisis. The currency rates and transfer fees are the premium for immediacy. If a relative has had their wallet stolen or injured themselves and needs CAD to pay medical expenses, they should be considered.
Relocating to Canada
When embarking on your new ex-pat life in Canada, you will need to send money to Canada. A great way of getting money to Canada is via a foreign exchange specialist who can help with money transfers, big or small.
Canada is one of the most desirable countries for British ex-pats to relocate to. This is partly due to the English language from previous commonwealth links, liberal & progressive culture, stunning scenery and their equivalent of the NHS, meaning no need for the expensive American style private system. Their largest industries are agriculture, water, wood (logging) and their most profitable export but far, oil. Oil (Brent and crude) has the largest impact on the Canadian dollar (CAD), with a high oil price, usually meaning more revenue received per barrel, ultimately making the CAD more valuable. If you pass the lengthy and stringent immigration process to qualify to live and work in Canada, the necessity to send cash to Canada and setting up financially won’t be far from your to-do list. See below for a straightforward and clear guide to help you send cash to Canada.
Banks in Canada
Despite Canada being one of the largest countries by physical mass, it is a relatively small nation with only around 37 million people. This means that there isn’t a wealth of choice on offer concerning the banking industry compared to Spain, for example.
The largest and generally, most credible banks in Canada are:
- Royal Bank of Canada (RBC)
- Toronto – Dominion Bank (TD)
- Bank of Novia Scotia (Scotiabank)
- Bank of Montreal (BMO)
- Canadian Imperial Bank of Commerce (CIBC)
A money transfer service or foreign exchange broker can send funds to a Canadian bank account with ease. The transfer should only take a few days to clear.
Opening a Bank Account in Canada
It may seem like a small task but setting up a Canadian dollar account well in advance of moving abroad is very important. Like anywhere that isn’t your native country, you won’t be surprised to learn that Canada’s banking systems are different from those of Europe.
For example, a European bank may request details like BIC and IBANs. However, these details don’t exist in Canada, where accounts have transit codes, swift numbers, and ABA numbers. We don’t recommend going through your banks for international money transfers to Canada. However, compared to other countries’ national banks, Canada has a more competitive rate but nowhere near what a broker can offer.
Regarding the country you are attempting to open a bank with the necessary documentation, it is required to complement and complete the account set up. Typically for a North American bank account to be set up, the below is needed:
Drivers Licence – An up to date and valid proof of Identification. This can be a driver’s license, passport or national identity card (This may take time to be issued in Canada).
Utility Bill – Proof of address. Usually, a utility bill or employment contract linking you to your new residence is required. This may be needed more than one.
Employment – Canada is notoriously very strict on immigration, and a variety of immigration-related documents being needed such as employment status, type of job and what industry and tax number/code if known is not unheard of to be requested.
Once your account is approved, you can begin to transfer money to Canada to credit your account. When you send money to Canada, it will typically take 1-3 days to arrive in your Canadian dollar account.
Can I Send Money from a Canadian Bank Account to the UK?
Absolutely provide the international bank details for your UK pound account, including the IBAN details etc. A transfer should only take a few days, subject to how quickly it is processed. A bank will likely charge a fee, whereas a broker can process the CAD and absorb the bank’s transfer fee.
Can I Send Money from a Canadian Bank Account to a US Bank Account?
Likewise, money transfers between Canada and the US can be facilitated efficiently with a foreign exchange specialist. Once the broker receives the Canadian Dollars, they can quickly exchange the CAD for USD. To transfer the funds to the US bank account, you’ll need the account details, including the swift and routing code.
Canadian bank account details
Canadian bank details can be located on your Canadian cheque book or internet banking. Canadian banks details are made up of the following –
- Bank or financial institutions – 3 digits
- The bank or Financial institution transit number – 5 digits
- And finally, the account number, which will be between 7-12 digits
Your FX specialist will require all of the elements above to facilitate a payment to your bank account or beneficiary.
Sending Bank Deposits to Canada
Your banks or currency broker will enjoy helping you move funds to a new Canadian bank account. Simply any paperwork and your Canadian bank account information is to hand. Your financial institution or currency broker can afterwards assist with your bank deposit transfer and send your cash to Canada.