The real cost of sending money home from Canada
Updated November 2026 · 5-minute read
If you support family abroad, transfer costs add up fast. The fee you see is only part of the price, and the rest is often hidden in the exchange rate. Here’s how to see the real cost and keep more of what you send.
The fee is only half the story
The total cost of a transfer has two parts:
- The transfer fee, which the provider shows you.
- The exchange-rate margin: the gap between the rate you get and the real market rate. Many providers advertise “no fee” and earn their money here.
Example (illustrative numbers)
You send $500. The fee is $5 (1%), and your rate is 2% worse than the market rate, which costs about $10 more. Your real cost is about $15, or 3%, not 1%.
What sending money from Canada costs today
The World Bank tracks the total cost of transfers around the world every quarter. For the third quarter of 2025:1
| Sending from Canada | Average total cost |
|---|---|
| $200, to all countries | 5.27% |
| $500, to all countries | 3.80% |
| $200 to India, all providers | 4.28% |
| $200 to India, banks | 6.80% |
| $200 to India, money transfer firms | 2.77% |
India figures are the World Bank’s Canada to India data;2 the bank and transfer-firm averages are our calculation from the listed offers. The worldwide average for sending $200 was 6.36%. The United Nations and the G20 have set a goal of 3% by 2030.1
Six ways to pay less
- Compare the amount that arrives, not the fee. Ask each provider: “If I send $500, exactly how much will my family get?”
- Check the rate against the market rate. Look up the current rate on a currency site and compare it with the rate you’re offered.
- Send larger amounts less often, if your budget allows. From Canada, sending $500 cost 3.80% on average, compared with 5.27% for $200.1
- Look beyond your bank. To India, banks averaged 6.80%, more than double the 2.77% average of money transfer firms.2
- Ask about fees on the other end, such as cash pickup fees or the receiving bank’s charges.
- Use a registered provider. Money services businesses must register with FINTRAC, Canada’s financial intelligence agency, before operating here.3 If a provider isn’t registered, don’t use it.
See what a year of transfers costs with our transfer cost calculator.
Sources
- World Bank, Remittance Prices Worldwide, Issue 54 (Q3 2025)
- World Bank, Remittance Prices Worldwide: Canada to India
- FINTRAC, Money services businesses