Sending money home is one of the most common financial activities for newcomers to Canada. Whether you're supporting family, paying off a mortgage abroad, or just moving your savings. You have a lot of options, and they are not all equal.
Why Banks Are Usually the Wrong Choice
Your Canadian bank can wire money internationally, but:
- Fees are typically $20–$50 per transaction
- Exchange rates are marked up by 2–4% above the mid-market rate
- Transfers can take 3–5 business days
- The total cost of a $1,000 transfer through a bank can be $50–$90 once you account for fees and exchange rate spread
For the same $1,000 transfer, a dedicated service like Wise might cost $8–$15 total.
Best Options for Sending Money Abroad
Wise (formerly TransferWise): Best overall for most corridors. Uses the real mid-market exchange rate with transparent flat fees. Fast (often same-day for major currencies). Excellent app. Best for: Europe, U.S., UK, India, Philippines, Australia.
Remitly: Strong for developing market corridors (Philippines, Nigeria, India, Pakistan, Mexico, Ethiopia). Offers "Express" (minutes) and "Economy" (3–5 days, lower fee) options. Very competitive for cash pickup.
Western Union: Oldest player, vast agent network. Great if your recipient needs cash pickup in a country with limited banking infrastructure. Rates are less competitive for bank-to-bank transfers.
MoneyGram: Similar to Western Union. Lots of pickup locations worldwide, but higher fees for bank-to-bank.
Scotiabank (for certain corridors): If you bank with Scotiabank and are sending to Latin America or the Caribbean, their rates are sometimes competitive because of their regional banking network. Worth checking.
Understanding Exchange Rates
Always compare the total amount the recipient will receive: not just the fee. A service with a "zero fee" can make money on a worse exchange rate. Use XE.com to check the mid-market rate, then compare what each service offers.
Example: Sending $500 CAD to India:
- Bank wire: ~$430 USD equivalent after fees and rate spread
- Wise: ~$447 USD equivalent
- Difference: $17 on one transfer, $204 per year if you send monthly
Ottawa Remittance Options
For cash-based options in Ottawa, you'll find Western Union agents at many Canada Post outlets (including those inside Shoppers Drug Mart stores across the city). MoneyGram is available at Walmart locations in Kanata and other areas.
For India, Pakistan, and the Philippines, there are several specialty remittance shops on Bank Street and in the Gloucester area that sometimes offer competitive rates, but always compare against Wise or Remitly before using them.
Practical Tips
- Lock in rates before sending: Some services let you lock an exchange rate in advance
- Send larger amounts less often to minimize fixed fees
- Notify your recipient before sending so they're expecting the deposit and can confirm it arrived
- Keep records of all international transfers for tax purposes, large incoming or outgoing transfers may need to be reported
