If you’re planning on sending or receiving money internationally or domestically, you need to consider the wire transfer rates in Canada.
While sending a bank transfer might be a convenient way to send money, the cost to wire money could be high.
There are also potential hidden costs, especially if you’re sending money abroad.
Your wire transfer fee may vary based on the exchange rates and the number of intermediary banks used in the process.
In this piece, we will talk about:
- The wire transfer fee in Canada
- The different types of wire transfer rates
- Factors that influence the wire transfer cost
- How to reduce your wire transfer fee
Let’s get started!
Types of wire transfer fees in Canada
There are a lot of different fees associated when sending or receiving a wire transfer to Canada.
Here there are:
- Outgoing domestic wire transfer fee
- Incoming domestic wire transfer fee
- Outgoing international wire transfer fee
- Incoming international wire transfer fee
There are a few reasons why banks charge these fees, such as:
Cover their costs
Whether domestically or internationally, sending a wire involves intermediaries, all of which have their own costs. By charging you a small transfer fee, banks can then maintain all of the banking infrastructure as well as pay their staff.
Invest in fraud detection systems
Where there is money, there is fraud, so banks have to invest in different systems to prevent fraud or money laundering. The wire transfer fee you pay is a small but important contribution to that.
Currency exchange
If you’re sending money internationally, the banks involved need to convert it into a different currency. If the banks don’t have a direct relationship with each other, they may use an intermediary bank for the transfer.
Speed up the process and generate revenue
Wire transfers are fast and easy to use for most people. This makes them a revenue-generating product for the banks. But the speed of these transfers comes at a cost. The bank has to invest a lot of resources to make sure these transfers are processed faster.
Here’s how you can do a wire transfer.
How much are wire transfer fees in Canada (Comparing Banks)
Here’s a comparison table that will show you the cost to wire money in Canada’s biggest banks:
| Bank | Outgoing domestic/international wire | Incoming domestic/international wire |
| RBC | – Over CA$45
– You’ll have to pay an additional CA$35 if you don’t provide an IBAN |
– Free for sums less than CA$50
– CA$17 for sums larger than CA$50 |
| CIBC | – CA$30 for sums less than CA$10,000
– CA$50 for sums between CA$10,000.01-CA$50,000 – CA$80 for amounts larger than CA$50,000
|
– CA$15 |
| BMO | – 0.2% of amount
– CA$10 communication charge |
– Between CA$14-$16 |
| TD Bank | – CA$50 | – CA$17.50 |
| Scotiabank | – CA$1.99 on select accounts
– CA$9 + 1% via Western Union |
– CA$15 but there’s a free option for a premium account. |
There might be extra charges if there are any intermediary banks involved.
Factors Influencing The Wire Transfer Fee
The cost to wire money is based on a few factors, such as:
- The bank you choose
Some banks tier their pricing based on the amount of money you’re sending. Also, certain banks might offer premium accounts which have lower fees.
- The destination of the funds
If you’re sending money internationally, you’ll be paying higher fees.
- The speed of the transfer
It depends on the method you use to wire the money.
Let’s dive into each of these more in-depth.
Choice of Bank
- The bank you choose will play a huge role in the wire transfer fee that you’re going to pay.
- Every bank has its own fees, which vary based on:
- The type of transfer (domestic vs international.)
- The amount of money you’re going to send or receive.
Also, the type of account you have will affect your fees.
Banks like Scotiabank offer cheaper fees for premium accounts.
Also, if you’re doing an international transfer, keep in mind that certain banks might provide you preferable exchange rates.
Make sure you compare the different fees and account options between banks to choose the best option for you.
Destination of funds
Where you’re sending your money also influences your wire transfer fee. Domestic wire transfers within Canada are cheaper and quicker to execute.
With international wire transfers, there’s a lot more complexity.
You need to consider the different intermediary banks and currency exchange rates that are going to occur.
Also, if you’re sending your money to a nation that lacks proper banking infrastructure, you might experience a delay as well as higher fees.
Keep in mind that if the currency you’re sending or receiving isn’t common, you might have to pay higher fees.
Speed of transfer
Most banks offer standard wire transfer speed:
- 1-2 business days for domestic transfers
- 2-5 business days for international transfers
You pay regular bank fees for regular transfer speed.
But some banks may offer you faster wire services if you upgrade your account. If you want to execute your wire quicker, you need to explore the different options and their associated fees.
However, in most cases, faster transfer means higher fees.
How to reduce the wire transfer fee
Here are a few tips you can implement to reduce your wire transfer rates:
Use online banking It’s cheaper in most cases.
- Send the money domestically if possible
Sending money within Canada is a lot cheaper than sending money abroad.
- Talk with your bank about your account
Some premium accounts offer discounts.
- Compare fees between banks
Check out the different fees of the different banks to see the best option for you
- Use alternative options
Services like have lower fees.
- Provide the right info
If you put all the correct details such as IBAN, you’ll avoid cancelation and additional fees.
Following these steps will ensure you pay lower transfer fees.
