The Great White North boasts the world’s eighth-largest migrant population. That’s about 7.5 million people or 20 per cent of the population. Consequently, it’s clear why there’s a growing demand for remittance providers in the country. Sometimes, however, you’ll need to receive money instead of sending it. Continue reading to discover how to receive money from overseas if you live in Canada.
Sending money to Canada
Whether you’re transferring money to yourself or receiving some from family, it usually starts with a ‘Send money to Canada’ query on Google. And as you’ll soon discover, there are several options out there. But what’s the best way to receive money in Canada? That all depends on things like cost, speed and security.
The most common ways to receive money from overseas in Canada include by:
Receiving money from overseas in Canada via bank transfer
Using your existing bank account to receive an international payment is, above all, convenient. But, unfortunately, it’s also very costly for you and the sender. Even worse if you’re sending money to yourself. That’s because there’s usually a laundry list of fees to pay, such as:
- A transaction fee.
- A sending fee.
- A currency exchange fee.
- A receiving fee.
But that’s not all. Banks usually set their own exchange rates, which is nowhere near as fair as mid-market exchange rates. And what do you get for all of this? Slow delivery times of two to five days, sometimes longer.
Receiving money from overseas in Canada by SWIFT transfer
The main pitfall of SWIFT transfers is that you’ll need to pay a handling fee before the funds are released. Worse, there’s usually no way of knowing what the cost is beforehand.
In addition, your account has to be in the sending currency. So, for instance, to receive a SWIFT transfer in Chinese yuan (CNY), you’ll need to have an account in the Chinese currency.
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Receiving money from overseas in Canada as a cash pick-up
As money transfers move increasingly towards a digital-first world, cash pick-ups remain an essential receiving method. So if you haven’t got round to opening a Canadian bank account yet, cash pick-ups are probably your best option.
“You should also consider safety.”
Firstly, make sure the transfer provider is regulated and have a secure way to collect and transport the funds home.