There are two main ways of sending money to Canada from Australia: via a major bank or through a money transfer specialist. Each method will have its own pros and cons, and the best solution will depend on your particular needs at the time.
The Banks
A bank can be a convenient and relatively secure way to transfer money to Canada, but it won’t be the cheapest.
The Commonwealth Bank, however, says it will waive the $30 international money transfer fee on transfers made from its Netbank or Commbank apps in the destination country’s currency. These payments generally take three business days.
NAB also has similar options if you make the payment from its app in the destination currency, and the bank says the payment will take about 24 hours.
You also need to check the banks’ exchange rate and compare it with other options.
To transfer money to Canada from your bank you will need the recipient’s full name, home address, account number or International Bank Account Number (IBAN) and the SWIFT or Bank Identification Code (BIC) of their bank.
The ACCC report Transparency and Competition in International Money Transfer Services also found that, based on the average transfer with a big four bank of just over $3,000 in February 2024, consumers could each save over $100 per transaction by switching to a low-cost supplier.
Money Transfer Specialists and Apps
There is an increasing number of international money transfer (IMT) specialist services on the market. They include well-known and more established names like Moneygram and Western Union, and new digital online entrants like Wise, Revolut and online foreign exchange currency traders such as OFX and XE.
“The big four banks were the most expensive followed by traditional IMT suppliers, with fintechs being the lowest cost supplier,” the report said, with the ACCC defining a fintech as a “predominantly online or digital IMT supplier who began offering services in Australia in the last one to 15 years”.
If you prefer to make a transfer in person and want the receiver to also pick it up in person, a Western Union IMT can be arranged through many Australia Post outlets. The Australia Post website says that in-person cash transfers can be ready to pick up in minutes at an agent location (subject to some terms and conditions).
There is little information about cost on the website, but it does acknowledge that it makes money from currency exchange, making it unlikely to be one of the cheapest methods available.
“Comparing suppliers’ prices using FX calculators is the best way to understand who can offer the best value deal for a consumer’s transaction,” the ACCC report said.
“Suppliers who do not have an FX calculator are not following the ACCC’s Best Practice Guidance for IMT transparency.”
