Your to-do list before going to Canada

Cash, wire transfer, money transfer or ATM withdrawals—these are a few of the options available to access your funds. Now, you have to find the cheapest, most convenient one.

Cash

Bringing cash gives you immediate access to your travel funds. However, if you lose your money or if it’s stolen, it’s gone. It can be wise to bring a small amount of cash (Canadian dollars or another strong currency you can exchange when you arrive) but carrying too much cash is a big gamble.

ATM withdrawal

ATMs accepting foreign cards are widely available in Canada, and your non-Canadian issued card may also be accepted by payment terminals in shops. It’s an easy way to access your funds, but do keep weekly/daily withdrawal limits and foreign transaction fees in mind. Try to withdraw one lump sum rather than regular withdrawals to avoid big fees.

Note that ATMs operated by the five big Canadian banks—Bank of Montreal (BMO), Scotiabank, the Canadian Imperial Bank of Commerce (CIBC), the Royal Bank of Canada (RBC), and Toronto-Dominion Bank (TD)—are always cheaper and safer than out-of-network ATMs, often found in convenience stores and bars.

Check to see if your home bank has a partnership with a Canadian bank; if so, a portion of the fees may be waived when you use the partner bank’s ATMs.

Bank-to-bank wire transfers and international money transfers

When carrying cash isn’t that safe and withdrawing large sums of money isn’t a practical option, you can use a money transfer service—either a bank-to-bank wire transfer or a money transfer through a third-party company. To find the cheapest option, shop around.

Bank-to-bank wire transfer

After opening your Canadian bank account, you can initiate a transfer from your home bank account to your new bank account in Canada. The time it takes for the transfer to complete depends on the financial institution, but it’s usually around five business days. For any international money transfers between two banks, remember to expect international transaction fees.

International money-transfer services

Money transfer companies offer a faster service and competitive fees.

This is how it works: first, you transfer the desired amount from your home bank account to the bank account of the company set up in your home country—this way, you skip the international transfer fee. Once the amount has been received, the third-party company transfers the amount from its Canadian bank account to your Canadian bank account, once again bypassing the “foreign transaction” fee.

It usually takes around two or three business days for the transaction to be completed.

Find the best exchange rate for money transfers and cash

Compare the rate offered by different companies and services on a given day because exchange rates are in constant fluctuation. Bank-to-bank wire transfers are often the most expensive option with fees and a poor exchange rate. For best overall value, travellers tend to favour money transfer services.

To get the best currency exchange deal, consider the following:

• Exchange rate
• Fixed fee, if any
• Commission fee charged as a percentage of the amount to be exchanged

Be very careful with companies advertising “zero commission fee” or “no fees”—they usually also offer a terrible exchange rate.