Sending money from Canada to the United States can be difficult, complex, and fraught with hidden costs if you send money to a US bank account through a local bank. There are dozens of money transfer services to select from, each with its exchange rates, transfer fees, and offerings.
How much does it cost to send money to the United States?
Transfer Fee: transfers from the United States are free. Smaller sums may still be subject to a flat fee if you’re sending money from outside the United States.
Exchange Rate: when you convert your Canadian dollars (CAD) to US dollars, OFX adds a margin to the exchange rate (USD).
The minimum transfer amount is $150 for a single transfer and $250 for recurring transfers or payments.
Top money transfer services to send money from Canada to the US
- OFX offers fee-free internet transfers.
- Wise is best for exchange rates, ex-pats, or family:
- XE Money Transfers has better rates for larger transfers.
- WorldRemit is the best option for small payments.
Money Transfer from Canada to a US Bank
You have two alternatives for transferring money from Canada to a US bank account:
On the one hand, you can send money from Canada to the United States via an international wire transfer from your American bank account to your (or your recipient’s) Canadian bank account. Wire transfers from Canada to the United States are the preferred method of most major US banks, but they are slow and expensive. Keep in mind that Interac’s collaboration with Mastercard and Western Union allows you to send money from a Canadian bank to a US bank, which means you can send money from Canada to the US using Interac e-Transfer.
The alternative option is to make a regular bank transfer (i.e., an ACH transfer) to an international money transfer specialist service’s local bank account, which will then pay out the funds to your recipient in Canada more quickly and cheaply than a bank would.
When moving money from Canada to the United States, these specialized services are far cheaper and safer than banks and everything for a fraction of the price. Cash sent via wire transfers (the way most banks use to send money abroad) must often go through many phases before passing via SWIFT, each of which adds additional time and costs to the process.
The best way to transfer money from Canada to the United States is usually one of the following options.
Money Transfers with Wise
Money transfers to any Canadian bank account with Wise domestic bank transfers, wire transfers, and credit and debit card payments. It is the cheapest way to transmit money to the US from Canada.
Money Transfers with WorldRemit
WorldRemit, which enables quick bank transfers and card payments to Canadian bank accounts, was the cheapest way to move money from Canada to the US.
Money Transfers With OFX
OFX is an excellent foreign currency broker for transfers from Canada to the United States, especially for large transfers (above C$25,000.00).