I’ve been using XE Trade for a few years for personal currency exchange and international funds transfers for my small business. I started to try CanadianForex a few months ago and have been very pleased with its rates and support.
The basic premise is relatively straightforward and the same as XE Trade: you submit currency exchange deals through their online interface, send them the money in the source currency, and they deliver the money in the destination currency to your account or a foreign account within a few days. Therefore, you can use it for currency exchanges between your own accounts, or to send money internationally (as long as it’s between different currencies). Especially for sending money internationally on a regular basis, using an online service is often much more convenient than a traditional bank.
Here’s my review of CanadianForex, specifically compared against XE Trade.
Creating an account at CanadianForex is very straightforward, although just like XE Trade, you have to provide (for a business account, at least) some sensitive information to them, including:
- A signed bank statement
- A client agreement form signed by 2 directors
- A copy of your driver’s licence
I’ve found CanadianForex’s exchange rates to be better than XE Trade, at least for transferring between Canadian dollars and: US dollars, Euros, and Australian dollars. CanadianForex’s standard fee is $15 for transactions under $10,000 (and no fees for transactions above $10,000); while XE Trade usually charges no fees at all, CanadianForex is still better (as of January 2015) by a significant amount for trades that are more than a few hundred dollars.
Some example comparisons between CanadianForex and XE Trade after deducting the CanadianForex fee:
- Sending approximately $5,500 CAD to Australia (AUD): the recipient got 40 AUD more with CanadianForex
- Sending approximately $8,000 CAD to Germany (EUR): the recipient got 48 EUR more with CanadianForex
- Sending approximately $7,000 CAD to the United States (USD): the recipient got 50 USD more with CanadianForex
In the case of sending money to Brazil, CanadianForex still charges the same $15 fee, whereas XE Trade charges an additional $22 wire fee. This resulted in similar savings as above with CanadianForex.
I’ve also found CanadianForex’s exchange rates to be slightly better than RBC’s foreign exchange rates, at least for transferring US dollars to Canadian dollars within my business account. However, the difference was only a few dollars for some of sample amounts I tested.
The trades happen completely online, although you have to speak to a CanadianForex representative over the phone to complete your initial account setup, and you also receive a verification phone call from them after your first trade.
To book a trade, you must first set up recipients, including their bank account information. Then, you get a quote for the exchange you’d like to make, and click a “Finalise” button. If you’ve set up direct debit, the money will be removed from your account by the next business day. Otherwise, you send CanadianForex the money using your bank’s bill payment system. Once CanadianForex receives the money, they will send an Electronic Funds Transfer (EFT) or wire payment, depending on the destination country, to the recipient.
You can contact CanadianForex by phone or e-mail. This is the same as with XE Trade. However, CanadianForex really emphasizes personal contact by assigning you a specific account manager (for a business account at least) and making you speak to them so that they can walk you through their services over the phone. With XE Trade you can set up your account and trade for years without ever needing talking to a person, let alone be assigned a specific contact.
I once had an issue when XE Trade mysteriously removed one of my recipient records without notifying me, and refused to tell me why when I phoned them. After I pushed for some explanation over the phone, they promised to follow up and never did. The recipient was eventually re-instated, although I was never notified about this. Of course, there is a chance that this could happen with CanadianForex, but I expect that they would be more communicative and cooperative with me in such a case. And to be fair, the situation with XE Trade might have been an edge case.
- Weekends and holidays: CanadianForex is closed on weekends and holidays. In other words, you can sign in to your account but you cannot submit any trades. This is probably a good thing; with XE Trade I discovered that the exchange rate spread was much worse on weekends and holidays versus normal business days.
- There’s currently a promo where you can get points at The Bay when making currency transfers