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Sending Money To Canada

If you are emigrating to Canada or investing in property abroad, transferring money to Canada at the best exchange rate can make thousands of pounds difference.

There are 2 elements to think about when transferring money abroad. These are firstly when to secure your exchange rate, and secondly, who to buy your currency from.

Timing is important, specially in troubled times in financial markets. It pays to have a basic understanding of what is moving exchange rates, so that you don’t end up buying at the wrong time. Is there an anticipated change in Canadian interest rates which might make the Canadian Dollar more expensive? Is there some inflation data out in the UK which could affect the Pound?

Speaking to a dedicated currency company should help you make sense of the market, since in most cases this will be the first time you have dealt with exchanging a large sum of money.

You should start to look at rates as soon as you have exchanged contracts on your UK property, the reason being that currency brokers will also be able to offer fixed exchange rates up to 2 years in advance, so if rates are preferable you can lock in – before you have received the proceeds of your property sale.

Similarly, if you already have funds available but don’t need your currency yet, it is worth your while monitoring rates straight away.

This could make a difference of tens of thousands of dollars, compared to leaving the timing to chance when you are a week away from completing on your Canadian purchase.

In 2008, Canadian dollar exchange rates varied from 1.69 to nearly 2.05 – a difference of 21%.

For any currency transaction, your bank is unlikely to offer you the best available deal. Checking with a specialist currency company is quick and easy and could get you a rate up to 4% better. If you are moving a large amount, the extra thousands of dollars are better off in your pocket – and even on relatively small transactions the saving could still be significant. Generally, if you are sending more than £3,000 overseas, it is normally worth using a broker.