What fees do banks and transfer services charge?

Choosing an international money transfer service in Calgary largely depends on understanding the structure of fees and hidden costs that can significantly impact the total cost of a transaction. Canadian banks, traditional money transfer operators, and new fintech platforms use different pricing models, creating a complex environment for consumers trying to find the best solution. Understanding all the components of the cost — from obvious fees to hidden markups on exchange rates — is critical to making informed financial decisions.

Canadian bank fee structure

Canadian banks use a multi-tiered fee structure for international transfers, which includes both fixed fees and percentage markups. Royal Bank of Canada (RBC) charges a minimum of CAD 45 for outgoing international wire transfers, with an additional CAD 35 if an IBAN code is not provided. With RBC International Money Transfer, customers can transfer funds to 200 countries with no direct transfer fees, but the bank applies competitive exchange rates with its own markup. Incoming transfers cost CAD 17 for amounts over CAD 50.

Toronto-Dominion Bank (TD) has a varied fee structure: CAD 16 for transfers to TD Canada Trust accounts and CAD 50 for transfers to other banks. TD Global Transfer allows you to transfer up to CAD 6,500 per day with a delivery time of 1-5 business days. Incoming international transfers cost CAD 17.50.

Bank of Montreal (BMO) uses a formula of 0.2% of the transfer amount plus a $10 CAD communication fee. This means that a transfer of $10,000 CAD will cost $30 CAD ($20 CAD + $10 CAD). BMO also offers transfers via Western Union for $9 CAD plus 1% of the amount. Incoming transfers cost CAD 14.

Canadian Imperial Bank of Commerce (CIBC) has a progressive fee structure: CAD 30 for amounts up to CAD 10,000, CAD 50 for amounts between CAD 10,000.01 and CAD 50,000, and CAD 80 for amounts over CAD 50,000. CIBC Global Money Transfer advertises itself as commission-free, but the bank applies its own exchange rates with a markup. Incoming transfers cost CAD 15.

Scotiabank offers one of the lowest fees among major banks — only CAD 1.99 for transfers to selected countries, free for Ultimate Package holders. Scotia International Money Transfer supports over 50 countries with delivery within 1-3 days. Incoming transfers cost CAD 15.

Hidden costs of bank transfers

The biggest hidden cost of bank transfers is the exchange rate markup, which can range from 1% to 5% of the transfer amount. Banks use the mid-market rate as a base but add their own margin to make a profit. For example, if the actual CAD/USD exchange rate is 0.75, the bank may offer a rate of 0.70, keeping the difference as profit.

Intermediary bank fees are another source of unpredictable costs when using the SWIFT system. Each intermediary bank may charge between 15 and 30 CAD for processing the transfer. For complex transactions that pass through several intermediaries, these fees can quickly add up.

Receiving bank fees vary from 10 to 20 CAD and are charged on the transfer amount before it is credited to the account.

Fees of traditional transfer operators

Western Union has a complex fee structure that depends on the transfer amount, payment method, and destination country. According to the 2024 European rates:

  • up to 10 EUR — 2.90 EUR,

  • up to 100 EUR — 5.90 EUR,

  • up to 1,000 EUR — 41.80 EUR.

The exchange rate markup is usually 1.9-2.2%. For Canada, the US, and Mexico:

  • up to 50 EUR — 4.90 EUR,
  • up to 500 EUR — 10.50 EUR,
  • up to 1,000 EUR — 12.50 EUR,
  • over 1,000 EUR — 4% of the amount.

MoneyGram offers a flat fee of CAD 1.99 for the first transfer. Fees vary depending on the amount, payment method, and delivery method. The exchange rate markup is lower than Western Union.

Canada Post, in partnership with MoneyGram, offers transfers of up to CAD 100 for CAD 4.

Fees of modern digital platforms

Wise charges a commission of 0.35%–1.5% (average 0.7%) and uses the mid-market exchange rate. For 1,000 CAD, the commission is 7.09 CAD. 64% of transfers are completed in <20 seconds.

RemitBee offers free transfers for amounts over CAD 500 and charges between CAD 2.99 and CAD 8.99 for smaller amounts. The exchange rate markup is 0.5–1.0%.

Remitly has Economy (3.99 CAD, free for amounts >1,000 CAD) and Express (from 4.99 CAD). The exchange rate markup is 0.5–2%.

Local currency exchange providers

  • Interchange Financial — exchange rates 1–3% better than banks, no commissions.

  • Express Forex Services — best exchange rate guaranteed, fast service.

  • ICE Canada — over 50 years in business, online booking at competitive rates.

  • Calforex — widest selection of currencies available.

Cryptocurrency solutions

Calgary Bitcoin Exchange — commission from 3.5%, price match guarantee. Vancouver Bitcoin Calgary — best prices, over 400 reviews.

Bitcoin ATM — commission 10–20%, LocalCoin ATM — transaction plus fixed fee, Instacoin ATM — 10 CAD fixed plus market price.

Comparative analysis of total cost

When comparing the total cost of transfers, all cost components must be taken into account. To transfer 1,000 CAD to Ukraine:

  • Wise: 7.09 CAD (0.84% commission) + real average market rate = lowest total cost

  • RemitBee: Free for amounts over 500 CAD + small markup on the exchange rate (0.5-1%) = competitive cost

  • RBC: 45 CAD commission + 2-4% markup on the exchange rate = 65-85 CAD total cost

  • Western Union: 15-25 CAD commission + 2.2% markup on the exchange rate = 37-47 CAD total cost

  • BMO: 30 CAD commission (20 CAD + 10 CAD) + 2.5% markup on the exchange rate = 55 CAD total cost

Strategies for minimizing fees

  • Consolidate transfers — send larger amounts less frequently instead of frequent small transfers. Many providers offer better rates for larger amounts.

  • Compare real-time exchange rates — check rates before each transfer, as they can fluctuate significantly throughout the day. Use rate alerts from apps (Wise, XE) to find the best time to transfer.

  • Alternative payment methods — Some providers offer discounts for bank transfers compared to card payments. For example, Wise charges lower fees for ACH transfers than for card transfers.

  • Use promotional offers — new platforms often offer free or discounted transfers for new customers. RemitBee offers the first transfer up to CAD 250 for free.

Money transfer fees in Calgary vary significantly depending on the provider, amount, and currency pair. Modern digital platforms (Wise, RemitBee) usually offer the best value thanks to transparent fees and competitive exchange rates. Traditional banks remain more expensive due to high fixed fees and significant markups on exchange rates, but they provide maximum security and support. The choice of the optimal service depends on your priorities: cost, speed, convenience, and security of transactions.