Introduction: What You're Really Paying

When sending money abroad from Canada, the advertised fee is just the tip of the iceberg. Canadians lose approximately 30% of remittance amounts to hidden costs—that's billions annually. Understanding the true cost ensures more money reaches your recipient.

Section 1: The Three Cost Components

1. Transfer Fee

• Service charge for processing

• Typically $0-$50

• Most visible but often smallest cost

2. Exchange Rate Markup

• Difference between market rate and rate you get

• Typically 1-5% of transfer amount

• Most money lost here

3. Third-Party Fees

• Correspondent bank charges: $10-$25

• Receiving bank fees: $10-$50

• Currency conversion fees: 1-3%

Section 2: Exchange Rates: The Silent Fee

Market Rate vs. Your Rate

• Market rate: What banks charge each other (Google/XE.com rates)

• Your rate: Always worse—includes hidden markup

• Example: Sending $1,000 CAD to USD

  • Market rate: 0.75 = $750 USD

  • Bank rate (4% markup): 0.72 = $720 USD

  • Hidden cost: $30

"Zero Fee" Deception

Providers advertising "no fees" typically:

• Add larger exchange markups

• Example: 0% fee but 3% exchange markup = $30 on $1,000

Calculate the Markup:

1. Check market rate on Google/XE.com

2. Get provider's rate

3. Formula: [(Market Rate - Your Rate) ÷ Market Rate] × 100

Section 3: Third-Party Fees Breakdown

Common Hidden Charges:

1. Correspondent bank fees: $10-$25 per intermediary

2. Receiving bank fees: 0.1%-0.5% or $10-$50

3. SWIFT/network fees: $15-$30

4. Currency conversion at destination: 1%-3%

Small Transfer Trap:

Sending $100 CAD could result in:

• Bank fee: $25

• Correspondent fee: $15

• Receiving fee: $10

• Result: Only ~$50 reaches recipient

Section 4: Provider Comparison

Banks vs. MSBs vs. Digital Platforms

Case Study: $1,000 CAD to Egypt

Bank:

• Fee: $45

• Rate: 22.25 (3.9% markup)

• Hidden fees: ~$25

• Received: 20,693 EGP (10.6% cost)

Digital Platform:

• Fee: $4.99

• Rate: 22.95 (0.86% markup)

• Received: 22,835 EGP (1.36% cost)

AlrealRemit:

• Fee: $9.99

• Rate: 22.85 (1.3% markup)

• Received: 22,622 EGP (2.28% cost)

Savings with AlrealRemit vs Bank: 1,929 EGP extra for family

Section 5: Cost-Saving Strategies

1. Bundle Transfers

• Send $1,500 quarterly vs $500 monthly

• Reduces impact of fixed fees

2. Time Strategically

• Best days: Tuesday-Thursday

• Avoid: Fridays, holidays, economic announcements

3. Choose Delivery Method

• Bank deposit: Usually cheapest

• Mobile wallet: Varies by country

• Cash pickup: May have extra fees

4. Payment Method Matters

• Bank transfer: Usually free

• Debit card: $0-$3

• Credit card: 2-3% (avoid)

5. Build Provider Loyalty

• Regular customers often get better rates

• Volume discounts available

• Referral programs can reduce costs

Section 6: AlrealRemit's Transparent Pricing

Our Promise:

Example Transfer: $1,500 to Saudi Arabia

Why Our Costs Are Lower:

1. Specialization: Focus on Canada-Africa/Middle East corridors

2. Efficiency: Technology reduces overhead

3. Direct relationships: Fewer intermediaries

4. Transparency: No surprise fees

Conclusion: Take Control of Transfer Costs

Key Takeaways:

1. Compare total delivered amount, not just fees

2. Exchange rates matter more for larger transfers

3. Ask about all fees before sending

4. Choose the right provider for your needs

Your Savings Potential:

• Bank cost: 5-7% of amount

• AlrealRemit cost: 2-3% of amount

• Annual savings on $10,000: $300-$400

• 10-year savings: $3,000-$4,000

Next Steps:

1. Use our cost calculator at AlrealRemit.com

2. Compare total delivered amounts

3. Start saving on your next transfer

Every dollar saved reaches your loved ones.

FAQ