There are a few ways to send money from Canada to the US. Some are free, while others can get quite expensive. And higher fees only sometimes equal better and faster money transfers.
This article will look at several things you must know to send money from Canada to the US safely. And then you’ll see our recommendations, from apps offering free service to those with fees attached.
We’re going to cover briefly:
- Difference between the Canadian dollar and the US dollar
- Sending money between Canada and the US
- What to look for in any International Money Transfer App
- Using online apps and services to send money from Canada to the US
- How to send money from Canada to the US for free
- When you need to send money from Canada to the US, fast
Difference between the Canadian dollar and the US dollar
A quick story: Canada was colonized by Britain. Do you know why they’re not using the Sterling pound?
It’s nice to know if you want to send money from Canada to the US. After Canada’s independence, different provinces used different currencies. The Canadian government then created a single currency that’ll be used across the board.
Also, the government realized that the US dollar was solid. Taking a cue from the name, the Canadian dollar was created in 1858.
The Canadian dollar is different from the US dollar in the following ways:
The symbol is C$ or CA$. The ISO is CAD. It was created in 1858 under the authority of the Bank of Canada.
Note: It’s essential to understand that the Canadian and US dollar are not equivalent. This means that one Canadian dollar is not equal to one US dollar.
The US dollar has more value than the Canadian dollar. This is why the recipient would receive a smaller numerical value when you send money from Canada to the US.
Sending money between Canada and the US
You can send money from Canada to the US generally in two ways:
- You can visit any bank in Canada and use a wire transfer. This method is usually slow and very costly because you’ll have to pay higher fees.
- Use any of the online money-sending services. This method offers a lot of options. Some are free and others have fees attached to them. They don’t get as costly as in-bank transfers.
We are going to explore the second option.
Sending through online money transfer services offers more options. For example, you can easily send money from Canada to the US using one of those services.
Apps that allow you to send money electronically are often called International Money Transfer Apps.
What to look for in any International Money Transfer App
There are tons of money transfer apps in the market.
Some popular apps that send money from Canada to the US include PayPal, Payoneer, Wise, OFX, World Remit, XE Money Transfer, and Western Union.
But how do you know the right one for you?
That’s what this section is about.
Here are five main factors to consider before you choose an app:
Transfer fees: Some companies charge a percentage. Others charge a flat fee. Fees usually depend on how much you’re sending and the speed of the transfer service. The company that charges one of the lowest fees and still delivers a superb service is Wise (formerly known as Transfer Wise).
Exchange rates: Most money transfer companies add a little markup to the official currency exchange rate. Watch out for that.
Transfer speed: How fast your recipient can access the money from when it’s sent. Generally, faster companies charge a very high transfer fee. PayPal is a good example.
Funding options: Some providers provide more options on how to fund your account.
Customer support: As with every online service, customer support is critical. So that when you have a need to reach out to them, you’ll have a rep ready to assist you.
Use these online services to send money from Canada to the US
Money transfer apps are easy when sending money from Canada to the US. They get rid of the physical stress and exorbitant fees that physical banks charge.
Best Apps to send money from Canada to the US
The best apps we’ll consider are:
- XE Money Transfer
- OFX and
- Western Union
Wise is one of the best options for sending money from Canada to the US. It was formerly known as Transferwise, and it’s a UK company. Two former Skype employees founded it.
Wise offers one of the cheapest transfer fees. And you can send as low as one dollar. You can deposit money via Bank transfer, debit card, credit card, and SOFORT transfer.
Wise uses an average conversion rate of $0.8033 per CA$1.
You can easily download the Wise mobile app from the Google Play Store and Apple App Store. You can also use the web interface if you’re on a PC.
WorldRemit: Best for almost instant cash pickups
With WorldRemit, you can easily send money from Canada to the US and have the receipt pick up cash from their locations. This feature comes in handy if you’re sending money to someone that doesn’t have a bank account.
This feature makes it one of the good ways to send money from Canada to the US. The downside of WorldRemit is its slightly lower exchange rate.
They trade at $0.78104 per C$1, meaning that if you send C$100 to a friend in the US, the person will receive $78. But with Wise, it can be as high as $80.
You can easily download the WorldRemit mobile app from the Google Play Store and Apple App Store. You can also use the web interface if you’re on a PC.
TOP TIP: On WorldRemit, you pay nothing the first time you send money from Canada to the US. This is a good option if you’re looking for a free way to send money from Canada to the US. But if you make several transfers, it may be wiser to use Wise.
XE Money Transfer
Another option to consider if you want to send money from Canada to the US is XE. The company has been around since 1993 and offers FREE money transfers. However, to make up for that, their exchange rate is much costlier, which you should keep in mind.
Unlike WorldRemit, they don’t offer cash pickup. Nevertheless, this is the preferred method if you want to send large figures abroad because there is no maximum transfer limit.
Like Wise and WorldRemit, XE’s mobile app is also on Google’s Play Store and Apple’s iOS App Store.
Remitly: Best for multiple funding options
This option is best if you like to have multiple funding options. For example, you can fund your Remitly account via bank transfer, debit card, credit card, Sofort, IDEAL, SEPA, and Passbook.
Remitly also has a fee for its services. However, the company also offers a money-back guarantee (plus fees) when you send money from Canada to the US and are dissatisfied with their service.
You can easily download and use the Remitly mobile app from the Google Play Store and Apple App Store. You can also use the web interface if you’re on a PC.
OFX: Best for currency hedging and large transfers
OFX is another option to consider if you want to send money from Canada to the US. The company was established in 1998. Like the rest, you can fund your account (via bill payment, electronic fund transfers, and direct debit) and quickly send it to your recipient in the US.
One little con with OFX is that the minimum transfer amount is $150. So for individuals that want to send lesser amounts, you will have to consider other options.
Transfers from Canada to the US via OFX usually take just one business day. To get started, you can download the OFX mobile app (from Google’s Play Store and Apple’s iOS App Store).
This goes without saying. You can send money from Canada to the US via Western Union. But this service is almost as costly as sending via local banks.
Western Union is a household name, so many people prefer to send money through them. This is a good option to consider if you don’t mind the extra fees.
Just like WorldRemit, Western Union is known for its instant cash pickup services. This can be a great option when you need the cash to land in the US in minutes.
But if you can afford to wait and you’d also like to save on the fees, you may consider other sending options.
Western Union’s exchange rate averages at $0.78 per CA$1. If you send CA$100, your recipient will get $78 in the US.
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This list won’t be complete without including this giant!
While PayPal is known for charging high fees, it can be the perfect solution if you send money from Canada to the US in seconds or minutes. Once the recipient has a PayPal account, you can quickly fund your account and finish your transactions in minutes.
The #1 con with PayPal is its slow customer service. Next to that is that the PayPal admin is notorious for freezing user accounts. Freezed accounts often take weeks and sometimes months to get unfrozen.
But overall, if you’re in haste and don’t mind paying higher fees for the service you need, Paypal is an excellent option.
Paypal’s mobile apps can be downloaded from the Google and Apple app stores.
How to Send Money from Canada to the US for free
You can easily send money from Canada to the US for free through XE money transfer.
It’s easy. Just sign up and get started. However, remember that your recipient may receive a significantly lower amount in USD. So always compare before you start with any service to ensure maximum value for your money.
When you need to Send Money from Canada to the US, fast
PayPal, Western Union, and WorldRemit are the best bets when you’re in haste. But you should expect higher transfer fees for this instant service.
Summarily, we can’t recommend a specific money transfer service. They all have pros and cons, making them suitable for specific situations.
Wise is the best for savings. PayPal, Western Union, and WorldRemit are superb for transfer speed, but this means you will pay more. Etc.
So, depending on your exact situation, you will find the money transfer service that suits your situation in this article.