Choosing The Best Way To Send Money Out Of Canada
Do you need to send money outside Canada? Are you confused about the best way of doing this? You're not alone. There are many different ways of transferring money to individuals and companies overseas, and each of them has its own benefits and complexities. In fact, the best way to send money really depends on what you are trying to accomplish and who will be receiving the money. For example, you might be trying to send top-up funds to roaming offspring(!), or completing a business transaction. There are potential pitfalls in figuring out both, but for enterprise it may be worth consulting the Canadian BBB for best practices.
If you want to make a large personal purchase in another country - such as buying a vacation home or investment property - then you need to choose a method that can deal with large amounts and offers good exchange rates. When most people need to do this, they go to their bank and put through an international transfer to the recipient's foreign account. However, while this is a viable option, you may not get the best exchange rate if you do this. While exchange rates don't matter so much if you are making a $100 purchase, you can end up losing a lot of money if you need to send $100,000 or more in local currency. Before you go to your bank by default, contact one or more currency brokers to see what they have to offer. If you do this, you can often get a better exchange rate, and some will even lock in the rate for a period of time if you need to make multiple transfers such as several monthly mortgage payments.
On the other hand, sending money through your bank or through a currency broker can be relatively slow - it can take up to a week for the money to show up in the recipient's account. If you need to get money somewhere quickly - for example, if a friend or family member runs into trouble when traveling abroad - then your best option is an international money transfer service such as Trans-Fast Remittance LLC. You may pay a little more when you use one of these services, but the money will arrive quickly - often the same day - and the recipient will be able to pick up the payments in cash provided that they have valid identification. Because of this, these types of services are also good if you need to send money to someone who does not have a bank account.
Finally, if you need to make a small purchase from a company abroad, use your credit card and ask to pay in US dollars. If you do this, you won't have to pay any transaction fees or currency exchange fees, provided that you pay your credit card bill right away. You may also be protected from fraud under the terms of your credit card agreement - although you should take steps to make sure you are not a victim of internet fraud. If you don't want to use a credit card, then an alternative approach is to use PayPal - although not all companies accept this. Under no circumstances should you send cash through the mail - if anyone asks you to do this, then the chances are that you will never hear from them again.
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