EUR to CAD

Why people send euros to Canada

Sending money from the eurozone to Canada is usually about something big. Maybe you're sorting out university tuition in Ontario or British Columbia, those funds are often due a long way before any classes start. Or you're moving to Canada from Germany, the Netherlands or Austria, and need to transfer your savings ahead of time to your new Canadian bank account. Some families in Italy or Portugal regularly send support to relatives living in Vancouver. Then there are businesses: cross-Atlantic trade between EU countries and Canada works more smoothly since the provisional CETA agreement began in 2017, and companies bill each other in both euros and Canadian dollars.

These payments aren't small. Tuition deposits and moving costs can easily be several thousand euros, so even a fraction of a percent in margin means a real loss or saving for you.

Right now, the mid-market rate stands at 1.5610. If you send 5000 euros at that rate, it would turn into 7,804.80 CAD before the provider applies any fees or their own markup.

About the euro and Canadian dollar

The Canadian dollar is steered by the Bank of Canada, and it's been floating (that is, not pegged to another currency) since 1970. Most Canadians call their currency 'the loonie' because of the bird on the coin. The euro, on the other hand, is set by the European Central Bank. Both currencies float, so their exchange rate shifts on the open market instead of staying tied to a set level.

Two details shape this currency pair. Canada sells a lot of raw materials and energy, so the loonie reacts to oil and commodity prices quite a bit. And because most Canadian trade is with the United States, US economic data and the US dollar also move the Canadian dollar. EUR/CAD usually follows the direction of EUR → USD; if the euro is having a tough time against the dollar, you'll see a similar story against the loonie.

This past year, EUR/CAD shifted by -3.58%, swinging between 1.5583 and 1.6332. That range helps when you want to judge if it's a good time to transfer for something like tuition.

How funds get to Canada

Canadian bank accounts require three codes: an institution number, a transit number (which shows the branch), and the account number itself. You'll need all three, and a single wrong digit may mean delays or a returned payment. It's safest to ask the person receiving money for a void cheque or a letter from their bank, these lay out all the correct numbers in one place.

Once the money's in Canada, people often use Interac e-Transfer for local payments. But that's only for transfers within Canada. When you send money from Europe, it typically arrives as a standard local deposit or, in less direct cases, is routed through the big global banks acting as intermediaries. Going the local route helps avoid unexpected deductions, as we explain in our guide on intermediary bank fees.

If you're expecting regular payments, for instance, you work for a European employer or rent out property abroad, you might want to look into multi-currency accounts. There, our guide to multi-currency accounts covers all the mechanics and possible benefits.

Cost factors and comparing providers

Big amounts mean you need to compare using realistic figures. For EUR 5000, the lowest-cost choice in our comparison is Wise with a payout of 7,769.05 CAD. Using OFX, the transfer would cost you 0.70% in total, while Xe charges 0.90% for the same sum. By total cost, we mean fees combined with the rate markup, what actually gets subtracted from your original amount.

Some banks highlight low fixed fees, but their exchange rates can be poor, sometimes that "free transfer" ends up costing you the most. Always check the payout amount your recipient gets. And if you have two providers with similar results, it can be smart to choose the one offering a rate guarantee or a confirmed delivery time, especially if you're racing to meet a tuition deadline.

For details on how we crunch the numbers, you can read about our process on How we compare.

Timing, time zones and sending larger sums

When you're sending to Canada, mind the clock: eastern Canada is five or six hours behind central Europe, and the west coast is nine hours behind. If you send funds in the European morning, Canadian banks are still open the same day. Don't cut it too close to the deadline with tuition or important payments, a week ahead leaves room to correct any errors, like a typo in a bank number, without stress.

If you're dealing with a large sum (maybe a down payment for a house, or bigger business payments) and rates could move against you, ask your provider about a forward contract. This lets you fix today's rate for a later date. There's more on this in our FX forward contract guide. Sometimes, when you transfer larger amounts, your bank or provider will also need documents proving where the money came from, so keep your payslips, sales contracts or property documents accessible.

If you might send to other countries too, have a look at EUR → AUD for Australia or check the CAN-to-EUR route on CAD → EUR.