Canada is home to millions of immigrants who regularly send money to family in their home countries. The global remittance market is worth hundreds of billions of dollars annually. The difference between using your bank and using a specialized remittance service can mean saving $30–$100 per transfer — and over a year, that adds up to serious money. Here is how to save on every international money transfer from Canada.
Why Canadian Banks Are Expensive for International Transfers
Canadian banks charge in two ways on international wire transfers: a flat fee ($15–$50) plus a markup on the exchange rate (typically 2–4% above the mid-market rate). On a $1,000 transfer, a 3% exchange rate markup plus a $20 wire fee means you are paying the equivalent of $50 in total costs.
Specialized money transfer services, by contrast, typically charge much lower fees and use exchange rates closer to the mid-market rate.
| Service | Fee (on $1,000 CAD to USD) | Exchange Rate | Speed | Best For |
|---|---|---|---|---|
| Wise | ~$6–$9 | Mid-market rate | 1–2 business days | Transparent pricing; best rate |
| Remitly | $0–$3.99 | Small markup (0.5–2%) | Minutes–2 days | Promotions; emerging markets |
| Western Union | $5–$15 | 2–3% markup | Minutes–5 days | Cash pickup; remote areas |
| MoneyGram | $5–$15 | 2–3% markup | Minutes–3 days | Cash pickup; agent network |
| Big 5 Bank Wire | $15–$50 | 2.5–4% markup | 2–5 business days | Nothing — use alternatives |
Wise (formerly TransferWise) — Best Overall
Wise is widely considered the gold standard for international money transfers. Key advantages:
- Uses the real mid-market exchange rate (the rate you see on Google)
- Low, transparent fees shown before you transfer
- Available in 70+ countries and 50+ currencies
- Multi-currency account allows you to hold CAD, USD, EUR, GBP, and many other currencies
- Wise debit card available for spending in local currency while traveling
- Best for: regular international transfers, expats, freelancers with overseas clients
Remitly — Best for Promotions and Specific Corridors
Remitly focuses on consumer remittances with strong coverage in key corridors: Canada to India, Philippines, Mexico, Guatemala, and many more. Features:
- First transfer promotions often offer $0 fees or locked exchange rates
- Economy (2–5 days) and Express (minutes) options
- Both bank deposit and cash pickup available in many countries
- Best for: sending to India, Philippines, and Latin American countries
Western Union — Best for Cash Pickup and Remote Areas
Western Union has the most extensive agent network in the world — over 500,000 agent locations in 200+ countries. This makes it the best choice when the recipient needs cash in hand, does not have a bank account, or is in a remote area without banking access. However, fees and exchange rate markups are higher than Wise or Remitly.
Popular Corridors from Canada — Cost Comparison
Sending $500 CAD:
- Canada to India: Wise (~$4 fee) vs Bank wire (~$35 total cost including markup)
- Canada to Philippines: Remitly ($0 promo) vs Western Union (~$12 fee + markup)
- Canada to Nigeria: Wise (~$6) vs Bank wire (~$40)
- Canada to USA: Wise (~$4) vs Bank wire (~$20)
- Canada to UK: Wise (~$5) vs Bank wire (~$30)
Sending Money to Canada (Receiving)
If family is sending money to you in Canada, the same services work in reverse. Wise supports receiving CAD to a Canadian bank account. Remitly and Western Union also support incoming transfers. For receiving CAD, provide your bank account information (institution number, transit number, account number) or use Wise's CAD account details.
Tax Reporting — Receiving Money from Abroad
Receiving money sent by family is generally not taxable income in Canada. However:
- Interest earned on the money once it is in Canada is taxable
- If the money represents foreign income you earned, it must be reported
- Large transfers may trigger reporting questions from your bank (anti-money laundering rules)
- If you have foreign accounts with more than $100,000 CAD, you must file a T1135 form
KOHO and International Transfers
KOHO is primarily a Canadian spending and credit-building account — it is not a remittance service. For international money transfers, use Wise or Remitly. For your day-to-day Canadian banking, KOHO offers excellent features with no monthly fees. See our banking guide for newcomers.