When you think about wiring money internationally, Western Union usually comes into mind. However, you should know that their added fees make for a bad deal. This is the same with banks – their forex rates are not good at all.
Transferwise Canada
That’s where Transferwise comes in – a revolutionary service that provides the best rate. Why? Because no currency is actually converted. Let’s say you move some Canadian to American dollars. Their backend pairs you and someone sending the money the opposite way (USD to CAD), and funds are moved domestically to satisfy both transactions.
Transferwise Canada – Currency Exchange
Instead of the inflated rates that banks and other money changers have, Transferwise utilizes mid-market rates – essentially what Google shows.
Transferwise Exchange Rate – Dated June 12
Credit card foreign exchange rates are also very close to this rate.
Google Exchange Rate – Dated June 12
If you sign up today, you can get your first transfer of up to 500£ (~845 CAD) free. This covers all currency pairs – you can transfer to or from Canadian dollars at the exact rate for no fees. What’s more, is the first free transfer also allows you to use your credit card for free.
Be careful to use a card that doesn’t label the transaction as a cash advance.
Using a Credit Card for Transferwise
For future transactions, the fee is capped at 1% for transactions over $350, and credit card processing is 2%. To avoid that though, just sign up your family, or friends, or your dog (maybe not your pets, as there are FINTRAC regulations).
Why Would I Use This?
Transferwise doesn’t only send funds to other people – you can also send funds to yourself. For those who are getting US credit cards and don’t have USD, this is the best way to transfer Canadian Dollars down south. Even banks with have “cross-border” networks (like TD and RBC) will not have better rates when it comes to converting currencies.
Sign up today and get your first transfer of up to $840 for free!
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MS?
I am confused. Is CAD->USD fee-free or 1% fee?
First transfer up to $850 is free. Transfers after have a fee.
I had recently been using TransferWise for USD/CAD transfers, but found that I was able to get a better rate by using Interactive Brokers. You do pay a commission for each currency conversion (it was $5 I think), but it was ultimately way less than the 1% Transferwise fee. It’s definitely more difficult to use IB, but since I’m moving to Canada in the next few months and need to transfer over enough USD to cover a down payment for a house in Toronto, it was worth it. Not sure if IB allows debit or CC funding, so not sure if there’s an obvious MS angle.
How can I tell whether my credit card will treat the transaction as cash advance or not? In particular I want to know how Amex Business Platinum will treat this transaction as.
Can’t pay with Amex.
I’m not seeing the free transfer rate or promotion after registering? Am I missing something?
Which mastercard did you use?
Thanks
Do you need a U.S bank account to transfer CAD–> USD?
can the funds be deposited into Canadian USD account.?
thanks
You need a us bank acc.
I use both the MBNA Alaska Mileage Plan MasterCard and TD Aeroplan VISA Infinite card. Is it treated as cash advance?
Just called TD with this question. Rep was almost sure charge would be tagged as cash advance.
Thanks for sharing! Any idea how long the promotion is valid?
Not sure, but I think it’s ongoing right now.
RBC Cathay Visa treats this as Cash Advance 🙁
As I said, avoid RBC for this!
hmm, which bank cards does it not tag as cash advance?
Prob no such card.
Used MBNA MC and it was treated as a cash advance!
Can I use my Visa Card to transfer Cdn funds to Nigeria? I need to transfer $3,900. It was mentioned that using a credit card will be treated as Cash Advance.
Thank You.
It depends on which Visa you use.
As of now do we have a list of the rare cards that are not treated as cash advance ?