Ben Todd | Jun 3, 2017 | 2
Cheapest Ways to Send Money From Canada to the US
In this article I offer the cheapest ways to send money from Canada to the US. The trouble with my tips is that many of them require a portion of your time and attention. There are no quick-fix solutions in this article, if you want the cheapest methods, then you will need to put the effort in.
Cheapest Ways To Send Money From The US To Canada With Currencyfair
Currencyfair is an exchange company that charges a fee and gives you very close to the market rate, which means you may save a lot of money using their service if you use it correctly (if you know how). There are two methods you may use with Currencyfair if you wish the send money from Canada to the US as cheaply as possible.
Why Is Currencyfair A Cheap Way To Send Money From The US To Canada?
Currencyfair has two attributes that you may exploit. Attribute one is the fact that you get an exchange rate that is very close to the market rate means that you may monitor the currency exchange market and make plans to snipe good deals. The other attribute that Currencyfair offers is that it gives you the ability to put your transfer/exchange onto their peer-to-peer market. On the market, you may find somebody who will give you a better price for your Canadian dollars than you may have otherwise got.
Method One – Buy Low And Send High
There are plenty of websites that offer an alert tool. You sign up and set the alert tool to tell you when your currency rises in price or lowers in price. Set it to tell you when the cost of US dollars (buying with CAD) is low and buy them whenever they are low. Set the alert tool to tell you when the cost of US dollars has risen (again, when buying with CAD), and send them to the US when the cost has risen. It is the same as buying low and selling high, except that you are sending when the cost is high.
You are saving money by buying when the price is low, and you are capitalizing on the fact the price of US dollars has gone up by sending when the price has risen. Obviously, this technique requires a fair chunk of time and a little bit of luck, and it calls for a situation where your transfer to your recipient is not urgent. Nevertheless, it is a strong and forward-thinking way to save money when you send money from Canada to the US.
Method Two – Put Your Transfer On The Peer-to-Peer Market And Wait For A Better Rate
Choose the quick trade option with CurrencyFair, and they will give you their rate right now. Put it on their peer-to-peer market, and you may name your own price. Currency prices fluctuate all the time, which means you may pick a price that is close to the current market price and wait for somebody to take you up on your offer. Or, you may place an order to buy very cheap US dollars and wait for somebody desperate to take you up on your offer. On a good week, you can save up to 5% on your exchange from the time you put your money onto the market to the time your exchange happens (however long that takes).
The reason you cannot save an epic amount is because of CurrencyFair’s quick trade function. If people want Canadian dollars quickly, they don’t have to take your offer with the exchange rate that you demand because they can take the rate that CurrencyFair offers. In other words, if you are looking to make a 5%+ saving on your currency exchange, then you will have to get very lucky on the CurrencyFair peer-to-peer market.
Cheapest Ways To Send Money From The Us To Canada With Paypal
PayPal offer an online wallet that allows you to load money and transfer it to other PayPal users. If you wish to transfer the money directly (with or without a fee), then you will need to load money into your account or have others pay you first. However, if your recipient requests the money (with something such as an invoice), then you may pay the request and it is drawn from your linked bank account.
Why Is Paypal A Cheap Way To Send Money From The Us To Canada
PayPal is both quick and cheap. It is quick because transfers take seconds, and they are quick no matter where you are sending to in the world. It is cheap because there is a function that allows you to send money to friends and family for free, and even if you are sending to other people or other countries, then they only pay a small fee when they receive the money. The most expensive part is the exchange because PayPal have crappy exchange rates. Nevertheless, you are able to convert your Canadian dollars into US dollars instantly so that you may send the US dollars to your recipient in the US.
Method One – It Is Very Cheap If You Already Have United States Dollars
If you already have US dollars in your PayPal account, then sending money to your recipient in the US dollars is very cheap or free. If your recipient is a family member or a friend, then you may transfer the US dollars for free. You send the money to the recipient’s PayPal account, and that person is then able to spend the money or withdraw it to his or her bank account.
Send it to family and friends, and there is no fee for you or the recipient. Send it by another method, and there is no fee for you, but the recipient has to pay a fee, which is taken from the transfer itself.
To clear the confusion, it is the recipient who pays the fees, which means you need to look at PayPal’s fee schedule in the US and not the one in Canada. At the time of writing (Sept – 2017), the fee is 2.9% plus $0.30 USD.
Method Two – Ask Other People To Pay You In Canadian Dollars And Use Them To Send Money To Canada
One of the best and easiest ways to avoid the crappy exchange rate that PayPal offers is to have people pay you in US dollars rather than Canadian dollars. Open your mind to this idea and you will see it is full of opportunity. I am not just talking about you doing freelance work for people in the US so that you receive US dollars, there are plenty of ways for you to receive US dollars thanks to PayPal.
Remember that PayPal allows you to hold different types of currency without paying extra fees, and if you can do it, then so can others. If somebody owes you rent, then ask them to pay you in US dollars via PayPal. If you have loaned out your car for a fee, lent somebody money, or paid money into an investment, then ask to be paid back by PayPal with US dollars. When and if somebody or a company owes you money, simply ask for it to be paid in US dollars rather than Canadian dollars.
Send Money From The Us To Canada With A Personal Peer-to-peer Currency Swap
Do the rich get richer? Usually, no, just look at how many rich people go bust before they hit retirement age. But, in my opinion it is easier to get richer if you already have money. The rich may not get richer, but people who know many people will often find it easier to get richer.
For example, a woman who has 50 friends/acquaintances in her phone book will find it harder to make money than a woman who has 500 friends/acquaintances in her phone book. The one with many friends will get more free investment tips, more job recommendations, more chances to meet a successful partner (man, woman or smart mouthed parrot), and she will receive more shopping and buying tips. These are just some of the perks that come with knowing many people.
Just to nail down this tip, think of a man who is looking for a very cheap house to buy. If he has 50 friends, he could email each with a quick hello and ask them if they know anything. If the same guy contacts 500 people he knows, he is more likely to find that cheap house.
The power of having many friends and acquaintances is useful if you are looking for the cheapest ways to send money from Canada to the US. Set up your own peer-to-peer market within a very small group. You are itching to buy US dollars, so find friends who are itching to sell US dollars for Canadian dollars. Maybe your friend has investments in the US that are paying off, or maybe another friend is planning a vacation or investment in Canada and is looking to avoid poor quality exchange rates and nasty fees. Does it pay to know people? In my experience, it does.
Why Is Personal Peer-to-peer Currency Swap A Cheap Way To Send Money-
You are dealing on a one-to-one basis, so things such as fees and a poor quality exchange rate shouldn’t matter. You are doing a currency swap, so you may use the exchange rate that Google shows. There shouldn’t be any form of transaction fee because you are both friends. Plus, if you conduct the transfer with PayPal, then you may send and receive money for free because PayPal allows you to transfer money between friends and family for free. And, PayPal allows you to hold numerous types of currency without paying an extra fee.
Method One – Advertise That You Wish To Swap Currency And Then Arrange It Over An Online Wallet
Maybe you don’t have a friend who is looking to buy and sell currency. If that is the case, you may advertise your desire to swap currency. You may advertise it on local classified advert websites, and on classified advert websites in the US. There are also things such as Google+, Twitter and Facebook where you may advertise your desire to do a currency swap.
How you advertise the currency swap is going to affect the type of responses you get. Most people are going to assume it is a scam, so you need the be careful how you advertise the currency swap. Try different methods, such as saying you need need to buy CAD$200 of US dollars for your vacation in November. You need your recipient to trust that you are not trying to scam him or her. In addition, remember that when you target your swapping partner, that your swapping partner probably isn’t looking at classified adverts because he or she is looking to swap currency. He or she may be online looking for something such as a currency exchange company or advice on currency exchanges. Just keep this in mind when you are searching for your swapping partner.
Conduct the transfers bit by bit. Be aware of things such as charge backs and cover your bases as much as you can. If you conduct the transfers bit by bit, then you both build trust as you trade. For example, if you are looking to swap your $3000 CAD for US dollars, then maybe transfer/swap US$100 worth for the first few transactions before increasing the amount you are transferring and swapping. That way, you both know you are both getting what you asked for, and it is harder to charge back transfers if PayPal sees a repeated and mutually beneficial series of transfers. Plus, save all your correspondence with the other person so that you may prove to PayPal (or whichever company you use), that your transfers are not part of a scam.
Method Two – Have Your Recipient Find You Somebody Who Wishes To Conduct A Currency Swap
This method is mostly for people who have a specific recipient in the US who is willing to work with you to help you save money on your exchange and transfer. Instead of you looking for a person who is looking to swap currency, you let your recipient find somebody.
It may be easier for your recipient to find somebody because your recipient lives in the US and therefore knows plenty of people who have US dollars in his/her/their bank accounts. In addition, when you convince people to swap over the Internet, it is difficult, but your recipient will probably have personal contact with the swapper, which will help increase the level of trust and lower the chances of one of you getting scammed.
Method Three – Sell Something In Canada On Ebay For US Dollars
Yet again, here I am suggesting that small business is the answer to your problems, but hear me out (read me out?). Sell things on the US version of eBay and get paid with US dollars. Or, sell things on the Canadian version of eBay and ask for US dollars. However, it can be tricky selling to people in Canada and asking for US dollars because some of your customers will buy from you without reading your advert description, and they will leave a bad feedback when you start asking for US dollars rather than Canadian dollars. My advice is that you log into the US version of eBay and sell your stuff on there to people in the US only. You may set your eBay settings so that you only sell to people in the US.
You can sell things that are large and small, and there are plenty of ways to make a sale and still make a profit. People are able to make a profit on things as small as bra extenders, which are devices used by women when they put on weight and no longer fit into their bras.
The beauty of this scheme is that you only need to make a tiny fraction of a profit. Most professional eBay sellers are looking to make enough profit to keep their business running, but that is not your goal, which means you can undercut most of your competition. Even if you sell your items for 1% profit, you are still winning because you are being paid in US dollars, which means you are saving a bundle on your currency exchange. While the other eBay sellers are wondering how you can sell at your low prices and remain in business, you are both making money and saving money at the same time.
Conclusion – Want More Tips And Advice?
Some of the tips and advice on this article are only successful if you use your head and business sense, but that is why I think these sorts of tips are the best. There are plenty of ways for people to save money when they are rushing or thoughtless, but the best savings are always reserved for people who are prepared to put a little time and effort into the process.
With that said, if you want a few more tips, try this article: Cheapest Ways to Send Money From The US to Canada. It contains tips that are not featured in this article. It is full of tips for sending money to the Canada to the US, but the same ideas and principles may be used if you wish to send money from Canada to the US.