Mid-market exchange rates, CAD multi-currency accounts, and dramatically cheaper international transfers than Canadian banks
| Feature | Details |
|---|---|
| Currency conversion fee | 0.33–1.5% (varies by currency pair) |
| CAD to USD fee | ~0.43–0.60% |
| Exchange rate | Mid-market rate (Google rate) |
| Transfer speed | 1–3 business days typically |
| Multi-currency account | Yes — hold CAD, USD, EUR, GBP, and 40+ currencies |
| Wise card | Visa debit card, spend in any currency |
| Wise Business | Yes — business accounts available |
| FINTRAC regulated | Yes — registered money service business in Canada |
Wise (formerly TransferWise) is a London-based financial technology company founded in 2011. It operates in Canada as a registered money service business under FINTRAC (Financial Transactions and Reports Analysis Centre of Canada). Wise is not a bank — it does not take deposits and is not CDIC insured — but it is a highly regulated international money transfer provider operating in over 80 countries.
Wise's core innovation: instead of using the traditional correspondent banking system (SWIFT) to move money across borders, Wise uses a network of local bank accounts. When you send CAD to someone with a USD account, Wise takes your CAD in Canada and simultaneously releases USD from its US account. This eliminates most of the fees and delays associated with international bank wires.
As of 2025, Wise serves over 16 million customers globally and moves over $12 billion in cross-border payments every month.
Canadian banks typically charge international wire transfer fees in two ways:
On a $5,000 CAD to USD transfer, a typical Canadian bank might charge $15 in explicit fees plus apply an exchange rate 2% worse than the mid-market rate — a hidden cost of ~$100 CAD. Total cost: ~$115.
Wise charges approximately 0.50% on CAD to USD transfers — about $25 on $5,000 — and uses the exact mid-market rate. Total cost: ~$25. That's a saving of about $90 on a single $5,000 transfer.
The Wise account (also called the Wise multi-currency account or Wise borderless account) allows Canadians to hold money in multiple currencies simultaneously. You can hold Canadian dollars, US dollars, Euros, British pounds, Australian dollars, and 40+ other currencies in a single account.
Practically, this means:
For Canadian freelancers, expats, or small businesses dealing with international clients, the Wise account can save hundreds of dollars per year in FX fees.
| Service | Explicit Fee | Exchange Rate | Total Cost (on $5K CAD→USD) |
|---|---|---|---|
| Wise | ~$25 | Mid-market | ~$25 |
| TD Bank | $15 | ~2% markup | ~$115 |
| RBC | $13.50 | ~2% markup | ~$113 |
| Western Union | Varies | ~2–3% markup | ~$120–$165 |
| PayPal | ~3.5% + flat | ~2.5% markup | ~$300+ |
| OFX | $0 explicit | ~0.5–1.5% markup | ~$25–$75 |
| XE Money Transfer | $0 explicit | ~0.5–1% markup | ~$25–$50 |
Wise is registered with FINTRAC as a money service business in Canada, which requires compliance with anti-money laundering regulations, reporting obligations, and security standards. Wise is also regulated by financial authorities in the UK (FCA), Europe (DNB), and the US (FinCEN).
Important note: Wise is not CDIC insured. Customer funds held in Wise are safeguarded but not bank-deposit insured. Wise holds customer funds in segregated accounts at major regulated banks and in liquid assets — these are separate from Wise's own operating funds. In the unlikely event Wise fails, customer funds would be returned from these segregated holdings.