Sending Money from Canada

Sending money from Canada to Mexico involves navigating the exchange rate "spread" and various transfer fees. To maximize the amount of Mexican Pesos (MXN) received, you must choose a method based on the urgency of the transfer and the payout method (bank deposit vs. cash pickup). Based on current 2024–2025 market standards and analysis from resources like **MexEdge** and **The Stuff I Use Channel**, here is the breakdown of the most effective methods. ### 1. Digital Transfer Apps (Best for Small to Medium Transfers) For amounts between $100 and $5,000 CAD, digital-first apps offer the best balance of speed and exchange rates. * **Remitly (Best Overall Experience):** * **Features:** Offers "Economy" (3–5 business days) and "Express" (minutes) speeds. * **Typical Cost:** Low fixed fee ($0–$3.99 CAD) but they apply a margin on the exchange rate (usually 1–2% below the mid-market rate). * **Action:** Excellent for promotional rates for first-time users, often allowing you to send money at the true mid-market rate for the first $500–$1,000. * **Wise (Best for Large Amounts & Transparency):** * **Features:** Uses the real mid-market exchange rate (the one you see on Google). They charge a transparent, upfront percentage fee. * **Typical Cost:** Approximately 0.6% to 1% of the total amount. * **Action:** Use Wise if you are sending more than $2,000 CAD, as the transparency of the exchange rate usually outperforms fixed-fee competitors at higher volumes. * **WorldRemit:** * **Features:** Specializes in diverse payout options, including mobile airtime top-ups and bank deposits to smaller Mexican banks like BanCoppel and Banco Azteca. ### 2. Traditional Peer-to-Peer & Bank Options * **Simplii Financial (Global Money Transfer):** * **Features:** If you are an existing Simplii customer, they offer $0 transfer fees to Mexico. * **The Catch:** While the fee is $0, the exchange rate is typically 1.5% to 3% worse than the mid-market rate. * **Source Note:** As highlighted by **Magical Mexico Moments**, "free" transfers often hide the cost in the currency conversion. * **Interac e-Transfer (International):** * Select Canadian banks (like RBC or Scotiabank) now allow international transfers powered by Mastercard or Western Union directly through the e-Transfer menu. This is convenient but rarely the cheapest option. ### 3. Cash Pickup Services (Best for Recipients without Bank Accounts) If your recipient needs cash in hand, you should use services with a deep physical footprint in Mexico (OXXO, Elektra, Coppel). * **Western Union:** * **Network:** Has the largest reach in Mexico. * **Strategy:** Use the Western Union app to "stage" the transfer and pay via bank transfer (Interac) rather than paying with a credit card at a physical location to avoid high cash-advance fees from your bank. * **Pangea Money Transfer:** * A significant competitor in the Mexico corridor, often offering flat fees ($4.95) for transfers to major Mexican retailers. ### 4. Step-by-Step Instructions to Send Money To ensure you get the best deal, follow these steps: 1. **Check the Mid-Market Rate:** Go to Google or XE.com and search "1 CAD to MXN." This is your benchmark. 2. **Compare Real-Time Payouts:** Use a comparison tool like *Monito* or *ScanRemit*. Input your specific amount; for example, if sending $1,000 CAD, see who results in the highest MXN landing in Mexico after all fees. 3. **Verify Recipient Info:** You will need the recipient's **CLABE** (Clave Bancaria Estandarizada). This is an 18-digit number used for all Mexican bank transfers. You do not strictly need the SWIFT/BIC code for app-based transfers, only the CLABE. 4. **Confirm the Identity (CURP):** Some services may ask for the recipient’s CURP (Unique Population Registry Code) for regulatory compliance in Mexico. ### 5. Critical Regulations & Limits * **FINTRAC (Canada):** Any transfer over $10,000 CAD is automatically reported by the service provider to the Financial Transactions and Reports Analysis Centre of Canada. * **SAT (Mexico):** Large or frequent transfers to a recipient in Mexico may trigger an inquiry from the Servicio de Administración Tributaria (SAT). To avoid tax issues for the recipient, ensure the transfer is labeled as a "Remittance" or "Gift." * **Daily Limits:** Most apps (Remitly/Wise) have a daily limit of roughly $2,999 to $9,999 CAD for standard accounts unless you provide additional ID verification (Tier 2 or 3 verification). ### Summary Recommendation * **For the absolute most Pesos:** Use **Wise** for transfers over $2,000 CAD. * **For the best first-time rate:** Use **Remitly** for the promotional "New Customer" rate. * **For cash pickup at OXXO/Elektra:** Use **Western Union** or **Pangea** via their respective mobile apps.