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.
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.
Credit card foreign exchange rates are also very close to this rate.
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.
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.