What Fees You Can Expect When Receiving Money in Canada

Whenever you’re dealing with international money transfers, whether they are inbound or outbound, they are subject to certain costs or fees. After all, currency conversion and money transfers are the “bread and butter” of a foreign exchange service, and using these platforms cost money to use. Different foreign exchange companies deal with different cost structures for moving your money around the world.

On your end, you can expect to make payments in the form of fees, commissions, and exchange rate mark-ups. At the end of the day the most important consideration you could make in this regard is to your bottom line. The payment structure does not matter as much as the total cost incurred – save more money on currency exchange and money transfer by using Knightsbridge Foreign Exchange.

A Reliable Way to Transfer Money at a Low Cost

KnightsbridgeFX helps give thousands of clients guaranteed access to safe, secure, and reliable currency exchange by removing the need to pay service charges and commissions.  At KBFX, you only pay the exchange rate shown in your quote; there are absolutely no hidden fees or added costs.

All you have to do is sign up by opening up an account on their website and register a profile. Alternatively, you could call the toll-free number (1-877-355-5239) and get a friendly company representative to guide the entire process.

SENDING MONEY TO CANADA: WHAT FEES ARE INVOLVED?

If you’re planning on sending or receiving any sort of money transfers you need to understand the terms and conditions of the transaction. While you’re not favoured to ever find a free money transfer at the retail level, the key consideration is affordability.

Depending on how foreign exchange companies handle your transaction, various fees may be applicable to your order. As always, we recommend that you supplement the information in this guide with your own research. The costs we mention below are only a few of the main ones and there may be more unique fee structures at less traditional establishments.

1. Third Party Company Fees

Independent digital third parties like PayPal and MoneyGram are often used to move small amounts of currency from one account to another. Regardless of which electronic payment platform you decide to use, make sure to check where their costs lie. Typically, their fees will come in the form of a small service charge (can be fixed or variable) and they would also mark-up their exchange rate.

In most cases, with these services you pay a premium for a sleek user interface and a smooth money transfer process. They won’t help you save the most amount of money on foreign exchange.

2. Bank Transfer Fees

Most individuals who seek foreign exchange services like money transfer and currency conversions end up defaulting to the bank. Historically, banks have been the go-to spot for this because of their secure systems and convenience. While their services are certainly reliable, their prices haven’t adapted to their modern day competition.

Bank transfer fees usually involve high costs and service charges whenever you’re making payments internationally, although the exact amount will change from bank to bank. On top of that, banks actually don’t feature competitive exchange rates either; you can find much lower rates at independent providers. It’s also worth mentioning that since bank transfers are typically performed on the SWIFT network, which involves sending your money through intermediary financial institutions, each intermediary will take “a little off the top” of the order.

3. Cash Collection Fees

Please note that you will always pay a premium to deal with physical cash, labelling this as the most expensive transfer method on average. If you ever find yourself in need of a foreign currency in cash but don’t have bank account access you can leverage companies like Western Union to get you a cash order. After you’ve paid for the order, you can then collect your cash in any Western Union branch.

While getting cash may seem like a good idea on the surface, it’s ultimately impractical and not very cost effective. Just keep a close eye on the costs involved in cash collection because you’ll likely be charged for a marked-up exchange rate, service fee, and any extra fees that are company dependent. If you have a registered bank account, we recommend only dealing with physical cash money transfers if you need to make payments in cash.

4. Transparent Pricing Models

A reputable foreign exchange establishment will always disclose their fee structures at the start. Companies like KnightsbridgeFX give you a completely accurate quote on every transaction, with no wire transfer charges, service commissions, or hidden fees tagged on at the end.  Whenever you send or receive money in Canada you should ensure that the price is justifiable, and every cost makes sense.

KnightsbridgeFX customers save money through large order quantities. Clients can benefit from a competitive exchange rate whenever they buy in bulk, letting them keep more money in their wallet. Our rates are low because we accept a lower margin per transaction than competitors – it’s really that simple!

FINAL THOUGHTS: Are money transfers to Canada limited?

While there’s no hard cap set for how much money you can actually send to or receive in Canada, the company you’re transferring funds with may set their own limits. Just know that in Canada all transfers that total over $10,000 must be disclosed to the Canada Revenue Agency.

In terms of taxation, the rules are fairly complicated so we suggest consulting with a professional on this matter. The amount of tax you pay – if any – depends on both the amount and conditions of the transfer, as well as your unique financial situation.