Author, Andy Brown
Below I’ll explain the simplest way to transfer money from Canada to the UK. This will help you avoid high fees and charges and get the transfer done quickly and efficiently.
To transfer money from Canada to the UK, you have two options:
- Use a bank
- Use a currency broker
Your first instinct may be to go to your bank as a recognised and familiar option.
However, it is highly likely that your bank isn’t the most cost-effective or the easiest option.
Contacting a currency broker can save you time and money.
Exchange rates are the most important part of your transfer as it tends to be the main cost for an international money transfer.
Currency brokers generally have much better exchange rates than the banks.
This is because banks aren’t currency exchange specialists and don’t offer particularly competitive rates.
They’re aware that international money transfers are something the majority of people aren’t overly familiar with.
Therefore, banks make their exchange rate costs and fees hard to find and understand.
Banks rely on their captive audience to use them as a ‘safe option’, hiding behind jargon and making people do complex calculations to find out the exact costs.
Here’s some advice to help you cut through to what matters.
Banks can charge 3%-4% more than brokers on large currency transfers.
That means if you’re transferring $100,000 to the Canada to the UK, it could cost you an extra $3,000-$4,000 if you use a bank.
You may not immediately realise that exchange rates differ massively between providers, but this highlights that you can stand to lose significant money if you don’t shop around.
4 Simple steps to transfer money from Canada to the UK
- Register & Identity check
New customers will need to register and create an account. As part of this, an ID check is carried out on your details.
This is usually a quick and painless process, but they differ slightly by provider.
At Key Currency, you’ll only need to do this the first time you trade.
- Secure your exchange rate
Exchange rates change every second. Your provider will give you a live CAD to GBP exchange rate at the time you wish to make your transfer.
If you’re happy with the rate, you can ask to lock it in.
Once the rate is secured, you’ll be able to proceed with the transfer, and your broker or bank will inform you of the necessary details to make the transfer, usually by email.
- Send in your Canadian Dollars
When you have the relevant details, you’ll be able to send in your Canadian Dollars.
Your bank or broker will then use these funds to purchase your currency (Pounds Sterling) at the agreed rate.
- Receive your converted currency
After sending your money in, the beneficiary will soon receive the converted currency.
Your currency broker or bank will notify you when the transfer has been completed.
It’s as simple and as painless as that!
How long will it take to transfer money from Canada to the UK?
Money transfers from Canada to the UK typically take between 1-3 working days for your money to arrive.
As Canada is part of the commonwealth, they have a great relationship with the UK and you won’t have many barriers to overcome in comparison to some other currency pairs.
This means your provider should be able to complete the currency exchange reasonably quickly and the funds should land in no more than a few days.
Plus, banks and brokers use the same SWIFT payment system, so there won’t be a huge advantage either way in transfer times.
As traditional big banks can be cumbersome, I would add that bureaucracies can sometimes slow them down.
The best way to transfer money from Canada to the UK
Should you use a money transfer specialist or a bank?
Some people decide to use their bank without looking at other options and exchange rates.
If you’re making a large, important transfer, we would always recommend comparing the market and the exchange rates on offer.
Generally, currency brokers and transfer specialists can deliver better exchange rates for larger transfers.
This makes currency brokers typically the cheapest way to transfer money from Canada to the UK.
Banks may be a better option for smaller transfers if costs are less important.
Why currency brokers are different from banks
It can be easy to get sucked into exchange rate market forecasts.
Big banks typically have higher costs on their exchange rates for international transfers.
Even though many advertise international transfers as ‘fee free’ or ‘without fees’, the main costs from big banks are built into exchange rates.
Currency brokers are specialists in international transfers. They have highly skilled staff who can provide expert support from start to finish.
One clear benefit is they will also be able to keep an eye on exchange rates for you.
If the CAD to GBP exchange rate reaches a certain level that suits you, currency brokers can alert you and make the transfer at the right time.
Banks have a much more hands-off approach to currency exchange.
This means no currency exchange expertise, no bespoke service, and no pre-arranged alerts.
So, there are several significant differences between banks and currency brokers that can impact the service you receive and on the bottom line.
How to avoid fees when transferring money from Canada to the UK
Many banks state that you can transfer money internationally without any fees.
Make sure you understand exactly what this means.
It means that in some instances, banks won’t charge ‘transfer fees’ for international transfers.
Let’s be clear that there is still a hefty charge built into the exchange rate.
Most currency brokers will be cheaper than the costs built into bank exchange rates.
However, many currency brokers will still charge smaller additional transfer fees.
At Key Currency, we do not charge any fees. The exchange rate we quote is the exchange rate you will get and there are no fees to worry about.
This gives you clarity and makes your international transfer as simple as possible.
Is it safe to use a currency broker?
Make sure your currency broker is FCA regulated.
The FCA (Financial Conduct Authority) is the official regulator of financial companies in the UK.
All authorised money transfer companies are required to keep all client funds in safeguarded bank accounts that are separate and ring-fenced from company funds.
You can check here that a company is on the FCA register.
- For transferring from Canada to the UK, you can use a bank or a currency broker
- You are likely to be charged 3%-4% more in exchange rates if you use a bank
- Transfers from Canada to the UK typically take 1-3 working days
- Currency brokers have specialised skills and techniques that can make your transfer easier
- Make sure you use an FCA regulated broker that will protect your money
Who are we?
Key Currency is an independent, British based currency broker.
Our rates are competitive across the industry.
We are also transparent and you won’t find any hidden fees.
We don’t force our customers to use online platforms.
You get your own representative who will help you through the transfer from start to finish.
You can even check which of us you are dealing with – all our faces are on our website. Not hiding behind a faceless online platform.
We are real people you can trust.
Key Currency is Authorised by the FCA (No. 753989) and Registered with HMRC (No.12888761).
We also have a 5-star customer rating on Trustpilot, which is the result of over 1000 customer reviews.
If you feel our service could be of use to you, simply request a free quote.