For immigrants in Edmonton who need to maintain financial ties with their home country, understanding the structure of fees and costs associated with international money transfers is critical to effectively managing their finances. The fee structure for money transfers in Canada may seem simple at first glance, but it actually involves numerous layers of costs that can significantly increase the total cost of a transaction. Understanding all of these elements will allow you to make informed decisions and save significant amounts of money, especially if you regularly send funds abroad or make large one-time transfers.
Fees charged by major Canadian banks
Major Canadian banks offer international money transfer services through their branches and online platforms, but their fees can vary significantly depending on the transfer method, amount, and destination currency. Understanding each bank's fee structure is important for choosing the most cost-effective option for your specific needs.
RBC (Royal Bank of Canada) offers several different methods of international transfers with varying fees. For wire transfers, RBC charges a minimum of CAD 45 for outgoing international transfers from Canadian dollars. If you do not provide an IBAN (International Bank Account Number) for the transfer, an additional $35 is added to the total cost. For incoming international transfers, RBC charges $17 CAD, but only if the amount exceeds $50—transfers of $50 or less are processed free of charge.
RBC also offers an International Money Transfer (IMT) service, which has a more complex fee structure. Through online banking, RBC charges $15 for transfers up to $2,500 and $20 for transfers between $2,500 and $10,000, with a daily limit of $10,000. For larger transfers via IMT, the fee starts at $45 for transfers from a Canadian dollar account. RBC advertises “free” transfers via IMT for amounts up to $50,000 per day, but this “free” service includes an exchange rate markup of approximately 2.5%.
TD Bank has a simpler but often more expensive fee structure. Outgoing international transfers through TD cost $50 CAD regardless of the amount. Incoming international transfers cost $17.50 CAD. For domestic transfers within Canada, TD charges $16 for transfers to TD Canada Trust accounts and $50 for transfers to other banks.
Scotiabank offers some of the lowest advertised fees among major Canadian banks. Through its mobile app or online banking, Scotiabank charges only CAD 1.99 for transfers to selected accounts. For Western Union transfers, Scotiabank charges CAD 9 plus 1% of the total transfer amount. For incoming international transfers, Scotiabank charges $15, but this fee may be waived for customers with premium account packages.
CIBC uses a tiered fee structure that depends on the transfer amount. For international transfers, CIBC charges $30 CAD for amounts of $10,000 or less, $50 for amounts between $10,000.01 and $50,000, and $80 for amounts over $50,000. Incoming international transfers cost $15. CIBC also offers a Global Money Transfer (GMT) system, which does not charge fees for transfers under $15,000 if the destination currency is on the bank's list, although the recipient's bank may still add its own fees.
BMO (Bank of Montreal) has a unique fee structure based on a percentage of the transfer amount. For wire transfers through a branch, BMO charges 0.2% of the transaction amount with a minimum of $15 and a maximum of $125, plus a $10 communication fee. For outgoing payments through Western Union, BMO charges $9 plus 1% of the total amount. Incoming international payments cost between $14 and $16.
Hidden costs: exchange rate markups
Although transfer fees are visible and often advertised, the largest part of the total cost of an international transfer is often hidden in the exchange rate markup. This is the least transparent but potentially most expensive part of any international transfer, and many people are unaware of how much they are actually paying.
When you search for an exchange rate online via Google or other currency converters, you usually see the interbank rate or mid-market rate. This is the real exchange rate used in global markets when banks buy and sell currencies between themselves. However, this rate is almost never the rate your bank will offer you for your personal transfer.
Canadian banks typically add a markup of 1% to 5% to the interbank rate, although some may charge 3% to 5% or even more depending on the currency pair and transfer amount. This markup is an additional fee built directly into the exchange rate itself, making it difficult for the average user to detect.
To illustrate the scale of this hidden cost, consider the following example. If the interbank rate for the Canadian dollar to the US dollar is 0.73, but your bank offers you a rate of 0.71, the difference of 0.02 may seem insignificant. However, on a transfer of $10,000 CAD, that 2.74% markup costs you an additional $274. For a business that sends $50,000 per month, a 2.5% markup means $1,250 in hidden costs for each transfer, or $15,000 per year.
Research shows that conversion fees can range from 0.35% to 2% depending on the currency pair for some providers. However, traditional banks often charge significantly more, especially for less common currency pairs or smaller transaction amounts. RBC includes an exchange rate markup of approximately $22.73 when sending $1,000 to USD. Scotiabank charges a transfer fee of $1.99 plus an exchange rate markup of $25.08 for similar transfers. TD Bank's exchange rate markup is $27.26 for the same amount.
To calculate the exchange rate markup charged by your bank, you can use a simple formula. First, find the interbank rate for your currency pair on websites such as XE.com or Google. Then compare this rate with the rate offered by your bank. Subtract the interbank rate from the bank rate, divide by the interbank rate, and multiply by 100 to get the markup percentage.
For example, if the interbank rate is 1.30 and your bank quotes 1.26, the markup is calculated as follows: (1.30 - 1.26) ÷ 1.30 × 100 = 3.08%. While 3% may seem like a small number, on a $1,000 exchange, that's an extra $30 CAD, and if you're sending $5,000 for a family trip, that's $150 just in exchange rate fees.
Additional intermediary bank fees
When you make an international transfer, especially through the SWIFT (Society for Worldwide Interbank Financial Telecommunication) system, your money often passes through one or more intermediary banks before reaching the recipient's account. Each of these intermediary banks may charge its own fee, which is deducted from the transfer amount during processing.
Typical intermediary bank deductions range from $15 to $50 CAD for each intermediary bank in the chain. The number of intermediaries in the route can range from one to three, depending on the currency and destination country. This means that your recipient may receive less than the amount you sent, making it difficult to reconcile invoices and budget.
The biggest problem with intermediary bank fees is that they are often unpredictable. When you initiate a transfer, your bank usually cannot tell you exactly how many intermediary banks will be involved or what fees they will charge. This means that you may not know the total cost of your transfer in advance, and your recipient may receive less than you expected.
For example, if you send $5,000 and your transfer goes through two intermediary banks, each charging $25, your recipient will only receive $4,950, even if you have already paid the outgoing fee to your bank. For businesses that make regular international payments, these unpredictable deductions can create significant accounting and financial problems.
Some banks offer an “OUR” (our charges) option when sending wire transfers, where the sender agrees to cover all fees, including intermediary bank fees. However, this option is usually more expensive upfront and still may not guarantee that the recipient will receive the full amount due to unexpected additional charges.
Specialized money transfer services
Specialized online money transfer services often offer more competitive rates and a more transparent fee structure compared to traditional banks. These services are designed specifically for international transfers and often use modern technology to reduce costs and increase efficiency.
Wise (formerly TransferWise) is one of the most popular alternative services among immigrants due to its transparency and low fees. Wise uses the interbank exchange rate without any markups for all of its transfers. Instead of hidden fees in the exchange rate, Wise charges a small, transparent fee that consists of a fixed and variable part.
For major currencies, Wise's variable fee can range from 0.45% to 0.48% of the transfer amount, plus a small fixed fee ranging from $1 to $3. For example, when sending 1,000 Canadian dollars to euros, the fee is $6.34 ($4.47 variable fee plus $1.87 fixed fee), which is approximately 0.63% of the total amount. When sending to US dollars, the fee is $7.40 ($4.76 plus $2.64), or approximately 0.74%.
For transfers to Ukraine, Wise charges a fee of approximately 1% to 2.5% depending on the amount, currency pair, and transfer speed. Users report fees of less than $2 when sending around $50 per month. When transferring $800 using the standard method, Wise's fee is approximately $13.60, or 1.7% of the amount, while a bank would charge between $36 and $62 for the same transfer.
Remitly offers different rates depending on the destination country, payment method, and your status as a customer. New Remitly customers can get their first transfer for free or at a promotional rate, but this offer usually only applies up to a set limit. For transfers from Canada in CAD to USD, Remitly offers free transfers up to $1,500 for new customers, after which the standard exchange rate applies.
Remitly's pricing structure can be confusing, as fees vary depending on your situation and destination. For example, transfers from Canada to India cost $1.99 for amounts over $500, while transfers to China cost $1.49. For transfers to the UK, the fee is $3.99. Remitly also offers two different service levels — Express and Economy — with different exchange rates and delivery speeds.
OFX specializes in large international transfers and does not charge fees for transfers of $10,000 CAD or more. For transfers under $10,000, OFX charges a fee of $15 CAD. OFX has no upper limits on transfers and offers personalized customer support 24/7, making this service particularly attractive for large transactions such as tuition payments, real estate purchases, or international business payments.
OFX's exchange rates include a small markup, typically between 0.5% and 1.5% depending on the currency pair. While this is higher than Wise, for large amounts, the total cost is often still significantly lower than traditional banks, especially considering there is no fixed fee for transfers over $10,000.
Western Union and MoneyGram are traditional players in the money transfer market with a large network of cash pickup locations around the world. The fees for these services vary significantly depending on the payment method, transfer amount, and destination country.
For Western Union, sending $600 CAD to Mexico for cash pickup with a bank transfer costs $17 in fees with an exchange rate of 1 CAD = 15.5461 MXN. MoneyGram charges a $4.99 fee for the same transfer with a better exchange rate of 1 CAD = 16.0292 MXN. For a bank transfer from Canada to the US in the amount of $990, Western Union may charge between $5 and $56, depending on whether you are sending from a bank account or an agent location.
Both companies add a markup of 1% to 5% to the exchange rate in addition to the transfer fee. Western Union and MoneyGram may also charge higher fees when paying by credit card compared to a bank transfer or debit card.
Fees for domestic transfers in Canada
For transfers within Canada, the most popular method is Interac e-Transfer, which allows people to send money to anyone with a Canadian bank account via email. Most Canadian banks and credit unions participate in the Interac e-Transfer system, and fees are typically much lower than for international transfers.
Typical Interac e-Transfer fees range from $1 to $1.50 per transfer. BMO charges $1 per transaction for most personal accounts. CIBC charges $1.50 per transaction. RBC charges $1 for transfers from savings accounts. Scotiabank charges $1 per transaction. TD Bank charges between $0.50 and $1.00 depending on the amount—up to $100 costs $0.50, over $100 costs $1.00.
Many banks include a certain number of free Interac e-Transfer transactions in their monthly banking packages. For example, premium account packages often include unlimited free e-Transfer transactions, while basic packages may include 3-5 free transactions per month. Receiving an Interac e-Transfer is always free, regardless of the bank.
Limits on Interac e-Transfers are typically up to $3,000 per transaction, up to $3,000 within 24 hours, up to $10,000 within 7 days, and $20,000 to $30,000 within 30 days for sending. Receiving limits are higher—up to $10,000 per transaction, up to $10,000 within 24 hours, $25,000 to $70,000 within 7 days, and $50,000 to $300,000 within 30 days.
Alberta Credit Union Fees
Credit unions in Alberta, including those operating in Edmonton, often offer more competitive rates and lower fees compared to large banks because they are non-profit financial cooperatives owned by their members.
ATB Financial (Alberta Treasury Branches) is a provincial financial institution that offers a Global Transfers service for international transfers. ATB's fee structure is quite attractive: transfers from $50 to $999.99 cost $5 CAD, and transfers from $1,000 to $10,000 are free for most supported countries. The daily sending limit is $10,000.
However, for “special countries,” ATB charges $15 regardless of the transfer amount. Processing time is typically 1 to 3 business days. ATB also offers a free $15 test transfer to ensure that the recipient's information is correct before sending a large amount.
For Interac e-Transfers, ATB charges $1.50 to send and request money. For Global ACH Transfers (primarily for the US), ATB charges $5 for individual transfers and $12 for batch transfers of up to 2,500 transactions. There is also a one-time registration fee of $150 and a monthly service fee of $20 for business customers.
Access Credit Union offers wire transfers with fees depending on the destination. Incoming wire transfers cost $10. Outgoing wire transfers to Canadian financial institutions cost $15, to US institutions $30, and international transfers also $30. For Interac e-Transfers, Access Credit Union charges $1 per send, while receiving and cancelling are free.
Servus Credit Union (which merged with connectFirst Credit Union) charges $5 per transfer for wire transfers. For Interac e-Transfers at a branch, credit union members pay $1.50 per transaction, while non-members pay $3. E-Transfers via ATM are free.
Comparing the total cost of transfers
To fully understand how much an international transfer actually costs, it is important to consider all cost components together: the base transfer fee, the exchange rate markup, and any intermediary fees. Let's look at a few practical examples to illustrate the difference between different providers.
Example 1: Sending 1,000 Canadian dollars to US dollars
When using RBC, the total cost includes the advertised fee, which may be included in the rate, plus a markup on the exchange rate of $22.73, resulting in the recipient receiving $714.59. TD Bank charges a markup on the exchange rate of $27.26, and the recipient receives $711.28. Scotiabank charges a $1.99 fee plus a $25.08 exchange rate markup (total cost of $27.07), and the recipient receives $711.45. Wise charges a total fee of $7.41 with no markup on the exchange rate, and the recipient receives $725.79.
In this example, Wise provides the best total cost, and the recipient receives $11 more than with the next best option and $14 more than with the worst option.
Example 2: Sending 10,000 Canadian dollars to US dollars
For larger amounts, the difference becomes even more significant. When using RBC's traditional wire transfer, the base fee is $45, the exchange rate markup (2.5%) is $250, plus an intermediary fee of about $20, for a total cost of approximately $315. Wise or a similar service may only charge around $50-60 for the same transfer.
Example 3: Sending 50,000 Canadian dollars to US dollars
For a business transfer or a large personal transaction, the difference is dramatic. When using a traditional bank (e.g., CIBC), the transfer fee is $50, the exchange rate markup (2.5%) is $1,250, plus possible intermediary fees of $25 to $50, for a total cost of approximately $1,325 per transfer. Over the course of a year with monthly transfers, this amounts to nearly $16,000 in fees alone.
OFX does not charge a fixed fee for this amount (since the transfer exceeds $10,000) and has an exchange rate markup of approximately 0.5-1%, which is about $250-500, saving you $800 to $1,000 compared to a traditional bank.
Additional fees and charges
In addition to the basic transfer fees and exchange rate markups, there are several additional fees that you should be aware of, as they can increase the total cost of your financial transactions.
Fees for canceling, changing, or tracking a transfer can be significant. CIBC charges a standard fee of $35 to recall, return, or change a wire transfer. RBC charges between $25 and $50 to cancel or change a wire transfer. Tracking or search request fees can range from $25 for domestic transfers to significantly higher amounts for international transfers.
Fees for using a credit card to fund a transfer are typically much higher than those for using a bank account or debit card. Remitly charges a 3% credit card fee calculated on the total cost of the transfer. For a $1,000 transfer, that's an extra $30 just for using a credit card. Western Union and MoneyGram also charge significantly higher fees when paying by credit card.
Currency conversion fees when using debit or credit cards abroad can also be significant. ATB Financial charges a fee of 2.9% of the converted amount for transactions made with Visa-branded cards and 2.5% for transactions with Interac-only cards.
A 5% GST (goods and services tax) applies to all wire transfer fees in Canada, adding a small but noticeable amount to the total cost. For a transfer with a $50 fee, GST adds another $2.50.
Practical strategies for minimizing fees
Once you understand the fee structures of different providers, you can use several strategies to minimize your international money transfer costs.
Compare the total cost, not just the fees. Always look at how much your recipient will actually receive, not just the advertised fee. A service with a “free” transfer may have a much worse exchange rate than a service that charges a small, transparent fee.
Use specialized services for regular transfers. If you regularly send money to the same country, services like Wise, Remitly, or OFX will almost always be cheaper than traditional banks. Even if the difference seems small on a single transfer, it adds up quickly over the course of a year.
Combine transfers when possible. For some providers, especially those with multi-tiered fee structures, sending one larger amount may be cheaper than several smaller transfers. For example, with ATB Financial, transfers over $1,000 are free, while transfers under $1,000 cost $5 each.
Use a bank transfer or direct debit instead of credit cards. Funding a transfer from your bank account is almost always cheaper than using a credit card. The difference can be 3% or more of the total transfer amount.
Consider using different services for different purposes. For small, regular transfers to family, Wise or Remitly may be best. For large, one-time transfers, OFX may offer the best overall cost. For urgent cash transfers, Western Union or MoneyGram may be the only options, despite higher fees.
Take advantage of promotions for new customers, but understand the long-term costs. Many services offer attractive introductory rates or free first transfers. This can be a great way to try out a service, but always check how much future transfers will cost after the promotional period ends.
Track the interbank exchange rate. Before making a transfer, check the current interbank rate on Google or XE.com. This will give you a baseline for comparison and help you identify how much your provider's markup actually is.
Conclusion
The fee structure for money transfers in Edmonton and across Canada is complex and multi-layered, but understanding its components allows immigrants to make informed decisions and save significantly on international financial transactions. While traditional banks offer convenience and familiarity, specialized money transfer services almost always provide a better overall value due to more transparent fees and more favorable exchange rates. The most important thing is to always consider the total cost of the transfer, including all fees and exchange rate markups, rather than just the advertised transfer fee, to get the best value for your money.