How to Send Money Abroad as a Canadian: Wise vs Banks vs PayPal (2026)
Here’s a number most Canadians don’t know: if you’re sending $2,000 CAD per month to cover expenses abroad, your Canadian bank is likely taking $40-80 of it every single transfer — not as a visible fee, but hidden in the exchange rate they give you. Over a year, that’s $480-960 in money that quietly disappears. Enough to cover a month of rent in Chiang Mai or two weeks of groceries in Lisbon.
The way you move money from Canada to your life abroad is one of the most overlooked financial decisions in the entire move. Get it right once and it saves you hundreds every year on autopilot. Get it wrong and you’re paying a tax on every dollar you spend for as long as you live overseas.
Here’s how the options actually compare.
All figures in CAD. Fee structures change — verify directly with each provider before transferring.
The Core Problem: The “Spread”
Before we compare providers, you need to understand how banks make money on your international transfer — because they don’t want you to understand it.
There’s a real exchange rate — the mid-market rate — that banks and currency markets use to trade with each other. You can see it on Google, XE.com, or any financial site. When you send money abroad, your bank doesn’t give you this rate. They give you a worse rate — typically 2-4% worse. The difference is their profit, and they never call it a fee.
Example: If the real rate is 1 CAD = 13.5 MXN, your bank might give you 13.1 MXN. On a $2,000 transfer, that’s $60 gone. Not listed anywhere on your statement as a charge — just a worse rate that you’d never notice unless you checked.
This is why comparing providers matters. The question isn’t “which has the lowest fee?” It’s “which gives me the closest to the real exchange rate?”
The Comparison
| Provider | Exchange Rate | Transfer Fee | Total Cost on $2,000 CAD | Speed |
|---|---|---|---|---|
| Wise | Mid-market (real rate) | 0.5-1.5% (~$10-30) | $10-30 | 1-2 business days |
| Canadian bank wire | 2-4% markup | $15-50 per transfer | $55-130 | 2-5 business days |
| PayPal | 3-4% markup | $0-5 | $60-85 | Instant to 3 days |
| Western Union | 2-5% markup | $5-30 | $45-130 | Minutes to 3 days |
| XE | Mid-market (real rate) | 0.4-1.5% (~$8-30) | $8-30 | 1-4 business days |
| Remitly | Close to mid-market | $0-5 | $15-45 | Minutes to 3 days |
| Your bank’s app (Interac) | 2-3% markup | $0-3.50 | $40-63 | 1-3 business days |
Annual Cost Comparison (sending $2,000/month)
| Provider | Monthly Cost | Annual Cost | Annual Savings vs Bank |
|---|---|---|---|
| Wise | $10-30 | $120-360 | $540-1,200 saved |
| XE | $8-30 | $96-360 | $564-1,200 saved |
| Remitly | $15-45 | $180-540 | $480-1,020 saved |
| Canadian bank | $55-130 | $660-1,560 | — |
| PayPal | $60-85 | $720-1,020 | -$60 to $540 |
The math is simple: switching from your bank to Wise saves a Canadian expat $500-1,200 per year. That’s real money — a return flight to Canada, three months of phone bills, or 150 pad thais in Chiang Mai.
Why We Recommend Wise
We’re not going to pretend to be neutral here — Wise is what we use, what we recommend, and what most Canadian expats we’ve talked to end up switching to after their first bank transfer abroad. Here’s why:
- Mid-market rate. Wise gives you the real exchange rate — the same one you see on Google. No markup, no hidden spread. The fee is separate, visible, and typically 0.5-1.5%
- Transparent pricing. Before you confirm, Wise shows you exactly how much the recipient will get, exactly what the fee is, and exactly what exchange rate you’re getting. Compare that to your bank, which shows you.. a confirmation number
- Multi-currency account. Hold and manage money in CAD, MXN, EUR, and THB simultaneously. Useful for managing expenses across countries or holding money when the rate is good
- Debit card. The Wise card lets you spend directly from your multi-currency balances at the real exchange rate. Use it for daily purchases abroad without converting large sums in advance
- Fast. Most transfers arrive in 1-2 business days. Some currency pairs are same-day
- Canadian-friendly. Accepts transfers from Canadian bank accounts, Interac e-Transfer, and debit. No hoops
Full disclosure: we earn a commission if you sign up through our link. You pay exactly the same fees either way — the commission comes from Wise, not from you. We recommend Wise because it’s genuinely the best option, not because of the commission.
When the Bank Is Fine
Wise wins on recurring transfers and daily spending. But banks aren’t always wrong:
- Large one-time transfers ($20,000+): Some banks offer better rates on very large amounts if you negotiate. Call your bank’s foreign exchange desk (not the branch) and ask for a preferential rate. On a $50,000 home equity transfer, even 0.5% savings matters
- You already have a foreign currency account: Some Canadian banks (RBC, TD) offer USD or EUR accounts. If you already hold the destination currency, there’s no conversion needed
- Mortgage or legal payments: Some transactions require a bank wire for legal/compliance reasons. In these cases, the bank fee is a cost of doing business
When PayPal Is Fine
PayPal is convenient for small, one-off payments — splitting a bill with someone, paying a deposit to a property manager who only takes PayPal, buying something online in a foreign currency. For these, the convenience justifies the higher cost.
PayPal is not fine for recurring monthly transfers. At 3-4% markup, you’re paying $720-960/year more than Wise on $2,000/month. That’s not convenience — that’s a subscription to a worse deal.
What About XE and Remitly?
Wise is our top pick, but it’s not the only good option. Two other services worth knowing about:
XE
XE is best known for its exchange rate website, but it also offers money transfers. The rates are competitive — often matching or coming close to Wise’s mid-market rate with fees in the 0.4-1.5% range.
Where XE shines:
- Rate alerts. XE’s rate alert system is excellent. Set a target rate and get notified when it hits — useful if you’re flexible on timing and want to transfer when the CAD is strong.
- Wide currency coverage. XE supports transfers to more countries and currencies than most competitors.
- No minimum transfer. Useful for small, irregular transfers.
Where it falls short: No multi-currency account or debit card. XE is a transfer service, not a financial account. You can’t hold balances in multiple currencies or spend directly from it. For daily spending abroad, you still need Wise or a local bank card.
Check current XE rates for your transfer.
Remitly
Remitly focuses on speed and simplicity, especially for transfers to Mexico, Thailand, and other popular remittance corridors. It’s designed for people who want to send money quickly without comparing rate charts.
Where Remitly shines:
- Express transfers. Send money in minutes to many destinations. Useful for urgent transfers — rent due today, unexpected expense.
- Bank deposit, cash pickup, or mobile wallet delivery. The recipient doesn’t need a bank account. In Mexico, this means cash pickup at OXXO or Elektra. In Thailand, cash pickup at banks or mobile wallet delivery.
- Simple pricing. Two tiers: “Express” (faster, slightly higher fee) and “Economy” (slower, cheaper). Easy to understand.
Where it falls short: The exchange rate isn’t always mid-market — Remitly includes a small spread on top of fees, though it’s much less than banks. For large recurring transfers, Wise or XE will save you more over time. Remitly is better for occasional or urgent sends.
Check current Remitly rates for your transfer.
The Bottom Line on Alternatives
For your main monthly transfer: Wise. Best rates, multi-currency account, debit card.
For rate monitoring and flexible timing: XE. Excellent rate alerts.
For speed and cash pickup: Remitly. Minutes, not days.
There’s no rule that says you can only use one. Many expats use Wise as their primary, with Remitly as a backup for urgent sends.
The Practical Setup (Do This Before You Leave)
- Create a Wise account from Canada. Verify your identity (Canadian ID, takes 1-2 days). Link your Canadian bank account. Do a small test transfer ($100) to make sure everything works
- Order the Wise debit card. It arrives in 1-2 weeks. Activate it. This becomes your daily spending card abroad — tap to pay at the real exchange rate, no conversion fees on most currencies
- Set up a recurring transfer. If your expenses are predictable (rent, for example), set up an automatic monthly transfer from your Canadian account to your Wise multi-currency balance. One less thing to think about
- Keep your Canadian bank account open. You still need it for CPP/OAS deposits, Canadian bill payments, and as a backup. Don’t close it — just stop using it for international transfers
- Watch the rate. Exchange rates fluctuate daily. If you see a particularly good CAD rate, transfer a larger amount and hold it in your Wise multi-currency account. This isn’t day-trading — it’s just being smart about timing on transfers you’d make anyway
Country-Specific Notes
Mexico (CAD → MXN)
Cash is still king for many daily transactions. Withdraw pesos from ATMs using your Wise card (fee-free at most ATMs, though the ATM operator may charge $3-5 CAD). Many landlords prefer cash or local bank transfer for rent — Wise can send directly to a Mexican bank account.
Portugal (CAD → EUR)
Europe is largely cashless. Your Wise card works everywhere contactless/chip is accepted — which is almost everywhere. Direct SEPA transfers from Wise to a Portuguese bank account are fast (often same-day) and cheap. You’ll need a Portuguese bank account eventually (for NIF, utilities, rent) — Wise doesn’t replace that, but it feeds it.
Thailand (CAD → THB)
Thailand is increasingly cashless in Bangkok (QR payments, PromptPay) but cash-heavy in smaller cities. Wise transfers to Thai bank accounts are straightforward. ATM withdrawals work but Thai ATMs charge a flat 220 THB (~$9 CAD) fee per withdrawal — withdraw larger amounts less frequently to minimize this.
The Bottom Line
Moving money abroad is something you’ll do every month for as long as you live overseas. A 2% difference in exchange rates sounds small until you calculate it over 3-5 years of expat life. On $2,000/month, that’s $2,400-6,000 in unnecessary fees over 5 years. Switch to Wise, set it up before you leave, and never think about it again.
The 10 minutes it takes to create a Wise account is the highest-return financial decision of your entire move.
For the full cost picture: Mexico vs Portugal vs Thailand cost comparison. For the costs nobody warns you about: Hidden Costs of Moving Abroad. If you’re a retiree, see how CPP and OAS work abroad and our RRSP withholding tax guide. For filing taxes on foreign income: Canadian tax filing from abroad.
Download our free Budget Worksheet for Retirees — includes a line for transfer fees so you see the real cost of every dollar you spend abroad.
This guide is for informational purposes only. Visa requirements, costs, tax rules, and healthcare policies change — always confirm details with official sources and qualified professionals before making decisions. All costs in CAD unless noted.
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