How We Calculate Transfer Costs
Most comparison sites only show you the transfer fee. We show you the full picture — fees plus the hidden cost of the exchange rate margin.
Why Transfer Fees Alone Are Misleading
When you send money internationally, providers make money in two ways:
- Transfer fee — a flat or percentage charge displayed upfront. Example: $5.00 flat fee.
- FX margin — a markup applied to the exchange rate. If the mid-market rate is ₹62.50 per CAD, they might give you ₹61.00 — pocketing the 2.4% difference silently.
A provider with a $0 transfer fee and a 2.5% FX margin costs more than a provider with a $5 fee and 0% FX margin on most transfer amounts above $200. Comparing fees alone leads to the wrong choice.
The True Cost Formula
We apply this formula to every provider for every amount you enter. The provider with the lowest total_cost is ranked first. The provider with the highest amount_received gives your recipient the most money — which is the same ranking.
Worked Example — CAD $500 to India
| Provider | Transfer Fee | FX Margin | FX Loss | Total Cost | Recipient Gets |
|---|---|---|---|---|---|
| BESTWise | CAD $4.75 | 0% | CAD $0.00 | CAD $4.75 | ₹30,955 |
| Remitly | CAD $7.50 | 1.0% | CAD $4.93 | CAD $12.43 | ₹30,474 |
| Western Union | CAD $7.50 | 2.5% | CAD $12.31 | CAD $19.81 | ₹29,951 |
Based on approximate mid-market rate of CAD 1 = ₹62.50. For illustrative purposes.
About Our Exchange Rates
We currently use approximate mid-market rates based on recent averages. These rates are updated periodically and are clearly marked as estimates on every comparison page.
In the future, we plan to integrate live exchange rate data. Until then, the relative rankings between providers are accurate — a provider with 0% FX margin will always beat a provider with 2.5% margin regardless of the exact mid-market rate.
Always verify the current rate directly with your chosen provider before completing a transfer. Rates fluctuate throughout the day.