Whether you are buying an overseas property or wanting to pay for your destination wedding, sending money internationally isn’t that easy as it sounds and is often associated with high markup fees and hidden charges. Such not-so-clearly listed charges often make you feel scammed. You will end up paying much more than you expected. However, by having a clear understanding of the international money transfer costs and comparing multiple quotes of banks and brokers, you will be able to save a lot of money. In this blog, we have tried our best to list down all such charges that you may not be aware of.
This is an obvious fee. Your bank will typically charge you a fixed money transfer fee on a capped amount. The transfer fee could range from $10 to $50 or more. All banks and brokers have different fee structures, so make sure you shop around and get quotes from multiple banks and agents.
The below table will give you a rough idea of transfer fee that some of the popular banks in Canada charge. Please note that this fee is just a rough figure. Please call up the bank to get the exact and the most recent transfer fee.
|Company||Transfer Cost (As low as)|
|RBC||As low as $25**|
|TD||As low as $40**|
|Scotiabank||$9 +1% of total transfer**|
At Knightsbridge Foreign Exchange, we have a very nominal international money transfer fee, which is better than what your bank has quoted you. Our process is simple, secured, and cost-effective. Contact us today to know more.
In addition to international money transfer fee, you will also have to pay the exchange fee. Yes, the bank or the broker will first exchange your money for the currency you want to send and then, they will be able to transfer it to the desired account. Most brokers do not charge any exchange fee but they add a huge markup when quoting you the exchange rate. Banks in Canada do charge an exchange fee but it is quite high, sometimes as high as 3%. This may sound an insignificant amount to you but, when you are dealing in thousands of dollars, 3% could equate to a substantial amount. This below table lists the tentative exchange rates charged by some of the popular banks of Canada:
|Company||Exchange Rate||Cost of Exchanging $1000||Savings on Exchange Rate|
|KnightsbridgeFX||0.2-1.2%||$1001 to $1012||$16 to $27|
If you don’t want to pay the huge exchange fees and we can help you. At Knightsbridge Foreign Exchange, we can help you get your currency transferred to any account of your choice without paying exorbitant fees. Our team exclusively deals with currency exchange and therefore, we constantly monitor the fluctuating currency exchange rates. We can help you secure the best rate or you can tell us what rate you are looking for and we will lock-in the rate and the amount for you as soon as it is available. Once your money is exchange with the currency you want, we can transfer it to your account or any account of your choice.
Using forex dealers is better than banks. If you have enough time to wait or if you have to transfer money to foreign countries frequently, the forex dealers can track the currency exchange market and help you lock-in the best rate for you whenever it is available, unlike banks that won’t do this for you. You cannot cut down the transfer fee but you can obviously get a better exchange rate and save some money.
Other than you, the recipient of the money may also be charged for receiving foreign payment. This varies from country to country so make sure you consider this too while finding out the international money transfer costs. Some banks have global networks and they can help you reduce these fees.
Banks and some reputed forex dealers are undeniably one of the most trusted sources for international money transfer. However, recently a lot of e-financial technology companies have cropped up across the globe and they have emerged as a low-cost alternative to banks for currency transfers. You can also send money through PayPal but it is very expensive. They charge 2.5% exchange fee. Further, PayPal doesn’t let you transfer large amount of money.
KnightsbridgeFX can help you convert funds and send funds at a cheaper rate than your bank.
Currency transfer companies and brokers like Western Union and Moneygram are also reliable and convenient when it comes to international money transfer to places such as India or Philippines. They have presence in almost all major cities globally and offer cash pickup too. However, they too overcharge their client. They charge a high upfront fee plus the exchange rate they quote is significantly different from the actual exchange rate that you can check on Google.
We hope this blogs helps you understand the international money transfer costs and the available options. If you are looking for currency exchange services, get in touch with us for best currency exchange rates.