Guide to Smart International Money Transfers for Newcomers to Canada

For many newcomers to Canada, sending money back home is an essential task, whether it’s for family support or managing financial commitments. However, with a variety of services available, it can be overwhelming to choose the right option.

Here’s a step-by-step guide to help you make informed decisions, so you can send money securely and cost-effectively.

1. Create Your Evaluation Criteria

Before diving into the details of different services, it’s important to know what your evaluation criteria will be. Are you looking for the lowest cost? Fast delivery? Maximum security for peace of mind? Or maybe convenience, such as easily accessible locations for your recipient?

Here are some important considerations:

Cost: Are you aiming for the most budget-friendly option, even if it means a slower transfer?
Speed: Is it important for the money to arrive quickly, even if it costs a bit more?
Security: Do you want the reassurance of a well-regulated and trusted service, even if it involves higher fees?
Convenience: Is ease of use for your family or loved ones back home a top consideration? Would they prefer picking up cash at a local post office, or would a direct deposit be easier?
Availability: Is the service available in the country you’re sending money to?

Once you’ve identified your needs, you can move forward with reviewing your options. This will help narrow down your choices and make the process smoother.

2. Review Your Options

Now that you have your priorities in mind, it’s time to explore the different services available for sending money home. Here are the most common options:

Banks: Banks are a reliable and secure choice for sending money abroad, especially for larger transfers. They are well-regulated and offer traceability, which is crucial for some recipients. However, banks can charge higher fees compared to other options. They are ideal for transfers to countries where security is a top priority.
Money Transfer Businesses: Companies like Western Union and MoneyGram are known for their speed and convenience. They are often a good choice if you need to send money to more remote areas, where banks may not have branches. While they may have higher fees, they offer faster transfers and a wide network of locations for cash pickups.
Credit Unions: Like banks, credit unions offer secure transfers, often at lower fees. They may have fewer international options than banks or money transfer businesses, but they can be a good option for local or regional transfers.
Cheque Cashing Businesses and Currency Exchange Services: These services provide fast access to funds but tend to have high fees. They may be more convenient for smaller, less formal transfers, but they are generally not ideal for sending larger sums of money abroad due to the associated costs and limitations on security and traceability.
Digital Platforms (like PayPal, Wise, or Remitly) offer convenient, often lower-cost alternatives for international transfers. These are especially popular among tech-savvy users and may appeal to those transferring smaller amounts more frequently

Scotiabank’s Money Transfer Options

Scotiabank offers a few specific services that may be beneficial for your money transfer needs. Here’s what you can access:

Direct Bank Transfers: You can send money directly to your recipient’s bank account, which is ideal for larger, secure transfers. Scotiabank is well-regulated, offering a reliable and traceable option for international money transfers.
Western Union Partnership for Cash Pickup: Through Scotiabank’s partnership with Western Union, you can send money to over 500,000 agent locations worldwide, in more than 200 countries. Your recipient can pick up cash quickly and conveniently at locations like post offices, grocery stores, pharmacies, and convenience stores.

This partnership provides flexibility, offering both bank-to-bank transfers and cash pickups, depending on your recipient’s preference.

3. Check Prices and Exchange Rates

After narrowing down your options, it’s time to dig into the costs. Make sure to ask about transfer fees and exchange rates before committing to any service. Many businesses make a profit by offering a higher-than-usual exchange rate, which can significantly reduce the amount your recipient will receive.

Here’s how to check:

Ask for the fees upfront. Banks and federally regulated financial institutions in Canada must clearly tell you what they’ll charge to send money abroad. However, remember that this fee doesn’t always include charges from the receiving side.
Compare exchange rates. An inflated exchange rate could mean your family gets less than expected. It’s important to check the rate being offered and compare it with rates from other businesses to see if it’s reasonable.
Monitor the exchange rate. Keep in mind that fluctuations in the exchange rate can affect how much your recipient will receive, especially if you are sending money over a longer period of time.

4. Ensure Safety and Security

Safety is crucial when sending money internationally. You want to make sure that the service you choose is secure and reputable.

Consider these questions:

Is the service regulated? Look for businesses that are licensed and regulated by government authorities, ensuring they follow industry standards.
Do they offer fraud protection? Many services provide guarantees or insurance for your transfer. Be sure to inquire about their policies in case something goes wrong.
What are other customers saying? Reviews from other users can give you insights into the reliability of a service. Are they known for delivering money quickly and securely, or have there been issues with lost or delayed transfers?

By verifying these details, you can ensure that your money is handled safely and that your recipient can access it without hassle.

Here are some resources to check to ensure the service you’re using is reputable:

Check with Better Business Bureaus

Contact the Consumer Protector Office in Your Province or Territory

Conclusion

Choosing the right service to send money home is a process that requires careful consideration of your priorities, available options, costs, and security measures. By following these steps—starting with identifying your main priorities, reviewing available services, checking prices and exchange rates, and ensuring security—you can make a well-informed decision that works best for you and your family.

Whether you’re planning to move or recently moved to Canada, Scotiabank can help navigate the process with banking packages that help newcomers succeed financially. With StartRight^TM get one free year of the Preferred Package chequing account, unlimited free international money transfers and access to credit cards designed for newcomers.¹

¹Terms and conditions apply; credit is subject to approval.

This article is provided for information purposes only. Any information, data, opinions, views, advice, recommendations or other content included in this article are solely those of the author and not of Scotiabank or its affiliates. It is not to be relied upon as financial, tax or investment advice or guarantees about the future, nor should it be considered a recommendation to buy or sell. Information contained in this article is subject to change without notice. All third party sources are believed to be accurate and reliable as of the date of publication.