Whether you are an expat, a student, a traveler, or a business owner, you may have various reasons to transfer funds across the Pacific Ocean. However, sending money internationally can be a daunting task, especially if you are not familiar with the process, the options, and the costs involved.
We prepared this quick guide to help you find the best way to send money from Canada to Australia. Read on and be better informed.
Table of Contents
Understanding Currency Exchange Rates
One of the most important things to understand when sending money from Canada to Australia is the exchange rate, the price of one currency when compared with another currency. This determines how much money your recipient will receive in Australia after converting your Canadian dollars. For example, if you send 1,000 CAD and the exchange rate is 1.11 AUD/CAD, your recipient will receive about 1,110 AUD (minus any fees or charges).
Exchange rates are not fixed or constant. Rather, they fluctuate constantly due to various factors, such as supply and demand, interest rates, inflation, and geopolitical events. For example, if there is a high demand for Australian dollars or a low supply of Canadian dollars, the exchange rate will increase. Conversely, if there is a low demand for Australian dollars or a high supply of Canadian dollars, the exchange rate will decrease.
Here are some tips and tricks to get the best exchange rate possible:
- Compare different providers. Money transfer service providers may offer different exchange rates depending on their margins and fees. You can use comparison tools or websites to find the provider that offers the most favorable rate for your transfer amount and destination.
- Time your transfer. Exchange rates can change significantly over time due to market fluctuations. You can use currency tools or alerts to monitor the exchange rate movements and take advantage of favorable market conditions. For example, you can set up a rate alert to notify you when the exchange rate reaches your desired level or a limit order to automatically execute your transfer when the exchange rate hits your target.
- Use a multi-currency account. A multi-currency account is an account that allows you to hold multiple currencies in one place. You can use a multi-currency account to avoid multiple conversions and save on exchange rate fees. For example, you can use a Wise multi-currency account to hold Canadian dollars and Australian dollars in one account and convert them at the mid-market rate whenever you need.
Comparing Transfer Options
Another important factor to consider when sending money from Canada to Australia is the number of transfer options available to you. These various options for sending money internationally include the following.
- Banks are traditional institutions that offer international money transfers as part of their services. You can use bank transfers or a card to send money from Canada to Australia through a wire bank transfer or a SWIFT transfer.
- Online money transfer providers are digital platforms that specialize in international money transfers. You can use your bank account or card to send money from Canada to Australia through an online platform or a money transfer app.
- Specialized remittance providers are companies that focus on specific regions or delivery methods for international money transfers. You can use cash or your card to send money from Canada to Australia through a physical agent location or a kiosk.
Each option has its own advantages and disadvantages depending on various factors, such as fees, exchange rates, speed, and convenience.
Our Recommended Money Transfer Services
Based on our research and analysis, we have selected some of the best online money transfer services for sending money from Canada to Australia. Here is a list of our recommended money transfer services with a brief description of each service:
- Wise is a popular online money transfer provider that offers low fees, transparent exchange rates based on the mid-market rate, fast speed, and high security. This service provider also allows multi-currency accounts and debit cards.
- Western Union is a global remittance provider that offers multiple delivery options, such as bank account, cash pickup, mobile wallet, and home delivery. They charge variable fees and exchange rates depending on the option you choose and also provide loyalty programs and discounts.
- Remitly is a specialized remittance provider that offers low fees, competitive exchange rates, fast speed, and high security. They also provide express and economy options, delivery guarantees, and referral bonuses.
All the above money transfer services are regulated by ASIC in Australia and FINTRAC in Canada.
Step-by-Step Guide to Sending Money Online
The following are the simple steps in sending money from Canada to Australia using an online money transfer provider.
- Register an account with your chosen money transfer provider using your email address or phone number.
- Verify your identity and provide the necessary documentation, such as your passport, driver’s license, or bank statement.
- Enter the recipient’s details, such as their name, address, phone number, and bank account information.
- Enter the amount of money you want to send and choose the payment method, such as your bank account, debit card, or credit card.
- Review the transaction details, such as the fees, exchange rate, and delivery time, and confirm the transfer.
- Follow any additional instructions provided by the money transfer provider, such as confirming your payment or tracking your transfer status.
Sending Money Overseas Shouldn’t Hassle You
Sending money from Canada to Australia can be a simple and convenient process if you follow the proper steps. Furthermore, by choosing the best money transfer company for your needs and preferences, you can save time and be sure that the money you send will reach its set destination. You can also ensure a smooth and hassle-free experience by planning ahead, checking the details, and tracking your transfer when you send money overseas.