Transferring large sums of money internationally in 2024

We’ll cover each of these points in detail throughout this guide - but let’s start with an overview of the key things to consider when sending a high value money transfer:

• Price – including both transfer fees and the exchange rate used

• Safety – how money transfer providers protect my money

• Paperwork needed - documents required to process my payment safely and legally

• Dedicated support - how responsive a provider is if I have questions or concerns

You’ll be able to find the Canadian Dollar to US Dollar exchange rate using our price comparison, with a simple Google search, or with a reputable currency conversion app. Right now, the mid market rate for exchanging 1 Canadian Dollar to US Dollar = 0.69679

The mid-market exchange rate is the rate used by banks and money transfer services trading on global markets. Some providers add a markup - a percentage fee - onto the rate used to convert your money from Canadian Dollar to US Dollar. That pushes up the price, and is often the most expensive single fee you’ll pay when sending money.

To give an example of how this works, let's look at how a couple of different providers operate for large amount transfers. We’ll cover these services in more detail later - but here we’ve modeled a payment of 200,000 CAD to USD as a quick comparison. You can see the exchange rate used, the transfer fee - and, most important of all, how much the recipient gets in the end:

*Fees and exchange rate correct at time of writing - 20th February 2024

This comparison illustrates why it’s important to look at both the fees and the exchange rates used for sending money overseas. On the face of it, Wise looks the most expensive, as you’ll need to pay a transfer fee. However, even taking this fee into account, your recipient would get more in the end with Wise. That’s all down to the exchange rate being used.

As you can see, Wise and OFX use different exchange rates. Wise uses the mid-market rate while OFX adds a margin to the rate used to convert your funds. OFX doesn’t have any transfer fee to pay for this transfer - but the cost has been added in the form of an exchange rate markup instead. As an exchange rate markup is a percentage fee, it can quickly add up when sending a high value payment. Use our tools to compare providers on both exchange rates and fees, to avoid surprise costs and make sure you get the best deal out there for your specific situation.

The safest way to send a large amount of money is to use a reputable and regulated money transfer company or bank.

Money transfer companies often operate online or through apps, and are convenient and easy to use. If you have questions or concerns you can usually talk to a member of the support team by phone or in-app chat. Digital money transfer companies have been built with safety in mind, and have lots of security measures in place to keep customers and their money safe, including both manual and automatic anti-fraud measures, secure account access and encryption. Money transfer companies which specialize in high value transfers often allow uncapped payments, and may have lower fees for sending large amounts of money. Double check the provider you pick is registered with FINTRAC - all the information you need is likely to be displayed in a footer of the provider’s website for convenience.

Major Canadian banks offer service in branches, by phone, online and through apps. It’s pretty common to find banks have maximum transfer limits for online and in-app payment, so depending on the bank you choose you might have to arrange your large value transfer in a branch or by phone. The fees for sending money overseas with a bank are often cheaper when you arrange the transfer online or through the bank’s mobile app - but being able to talk your payment through with a member of the bank’s staff can be reassuring. Banks are fully regulated, and use safe and reliable methods to process high value transfers.

Before you send a high value transfer you’ll need to check the limits that apply to make sure your payment will be possible. Limits may apply to the amount you can send in a single transfer, per day, per month or in a 180 day period. Some providers have different limits depending on how you pay, or depending on whether you’re arranging your transfer online or by phone for example. Here’s a roundup of the usual limits for some major Canadian banks and providers.

Tax guidelines for large money transfers

It’s important to understand if there are any tax implications when you send a large value overseas payment. Whether or not you need to report the transfer or pay any tax will depend on the type of payment and where it’s going.

If a transfer of 10,000 CAD or more is received into a Canadian bank, the bank has to report this to FINTRAC. This doesn’t necessarily mean you need to pay any tax on it - the purpose of the payment will determine this. If it’s a gift, for example, you may find there’s no tax. But if it’s income, and you’re a Canadian resident, it’ll be subject to Canadian tax like any other personal income would be.

As with most tax matters, it’s complicated. Getting individual tax advice is important to make sure you don’t fall foul of the law.

Which countries are popular for large money transfers?

Banks and money transfer services can support large value transfers to most countries around the world. Often people use high value transfers to send money to loved ones, invest or buy property overseas. Some of the most popular currency routes include: The UK, Australia, Thailand, The US.

Dedicated customer support for large money transfers

When you send a high value payment overseas it’s crucial that you trust the provider you use, and know how to get help should you ever need it. Some providers, like Wise or OFX, have a dedicated team that deals with high value transfers and offer personalized support and guidance. You can call OFX 24 hours a day to talk through your payments, and you’ll be able to get support from Wise by phone, email or using the in-app chat function.

Conclusion - Large money transfers abroad

Sending a high value transfer can be nerve wracking, but it doesn’t have to be. Using our tools can help you pick the right provider for your specific needs, looking at the fees and exchange rates available, as well as other crucial factors such as safety and customer feedback. Use this guide to make the process of sending a large amount transfer seamless, and get your money moving in no time.

How to send large sums of money overseas?

You can send large sums of money overseas with your bank or with a specialist digital provider. Specialist services can often provide lower overall costs compared to banks, as well as better exchange rates.

Is there a limit on bank transfers in Canada?

Banks may impose their own limits on transfers, which can be pretty low, particularly when sending money online. It’s sometimes possible to send more in a branch, although that may come with higher fees.

Is my information secure when sending money?

Banks and money transfer services must follow data protection laws and keep all of your personal and financial information safe. You’ll be able to view your preferred provider’s data protection policy online if you have concerns about how your data is held and handled.

What are the costs to send a large amount of money?

The costs for a large value transfer can vary a lot depending on the bank or provider you pick. You’ll need to review both the transfer fee and the exchange rate available to see the full cost - it’s common to find that transfer fees are low or even waived entirely, but an extra cost is added into the exchange rate instead. Choose a provider which uses the mid-market rate or as close to it as possible to keep the costs down.

Why was my large amount money transfer declined?

High value transfers may be delayed or declined if they go over the bank’s transfer limits, or if there’s a problem with checking your documents for verification. Double check the bank’s rules and ask for advice if you’re struggling with your payment.