If you have family living south of the border in the United States or perhaps overseas, it's possible you could be interested in an international wire transfer. But before you just send the money off with the first service you find, it can be financially helpful to do a little research first. Here are three tips to keep in mind when choosing a service to transfer funds to another country.
Bigger Transfers Can Save Money
If you intend to transfer money on a regular basis to say, a college student or someone else who will regularly need an infusion of cash, it might make more sense to pool the money together and cut down on the number of total transactions. Money transfer companies usually charge a fee for the service but provide a discounted percentage or amount to those with larger transactions. With that in mind, consider transferring enough money for one month instead of one week if you have the chance. Doing so will likely get you a lower rate.
Pay Attention to the Exchange Rate
While it may be important to cut down on the total number of transactions, don't be afraid to toss in an extra one or move your next one ahead of schedule if you notice a significant change in the exchange rate. The international exchange rate between Canada and many other countries can fluctuate daily. If you notice a certain increase in the rate that will allow you to get more foreign currency in exchange for your Canadian dollars, it might be worth it to do the math and send off another transfer sooner than expected.
Inquire About Fees on the Receiving End
Finally, while it is expected for you to have to pay a fee when conducting an international wire transfer, you will also want to check in with the recipient of your transfer and find out if there will be any additional fees on their end. Tell your recipient to check with their bank or service of choice and find out if there is a receiving fee for the money you are sending. Whenever possible, you want to avoid losing money on both ends of the transaction.
When conducting an international wire transfer, it's always a good idea to run the numbers first. Pay attention to the exchange rate and the amount of fees you are paying, as well as any fees on the receiving end. Reach out to a company that offers money transfer services for more information.