Tips for Getting The Best Exchange Rates While Sending Money To India

Every single day, thousands of people watch their money disappear due to poor exchange rates and hidden fees. Even a tiny rate difference can cost your family hundreds of Rupees back home.

• But what if you could get the best exchange rates?
• What if you could squeeze maximum value from every transfer?
• What if hidden fees stopped devouring your money?

As a money transfer service that has helped hundreds of thousands of Canadians send money to their loved ones back to India, we know the ins and outs of how exchange rates work, and we have prepped this guide to help you get the best out of them.

Let’s dive in and explore.

Quick skim - Getting the best exchange rates while sending money to India

Before we jump in, here’s a quick overview

Now let’s discuss each in detail as we progress.

Tip 1: Time your transfers to get maximum value

When it comes to sending money to India, timing is everything. Bad timing can cost you hundreds so find best time to lock in rates

Because exchange rates jump around like crazy all day long. External elements, including political situations, market sentiment, economic news, and global events, also influence these factors. That’s why it’s impossible to predict the surges and crashes.

For example, lower inflation in India in April 2025 strengthened expectations of RBI rate cuts, which initially supported the rupee but also introduced uncertainty and fluctuations in the exchange rate.

So, timing is the key if you want to make the most out of your transfers (you do it when everything favors you the most).

Track the trends that actually matter.

As we discussed, everything that happens across the planet, whether big or small, typically has a butterfly effect on global currency rates.

• Political chaos moves markets.
• Economic reports shake things up
• War hits forex and stock exchanges
• Even a single tweet can send rates flying

When Trump tweeted about slapping tariffs on Canadian goods, the U.S. dollar shot up 0.0228% against the Canadian dollar. This happened in just five minutes. The Mexican peso got hit even harder. Trump's tariff threats sent the dollar soaring 0.0508% against the peso almost instantly.

So when a 280-character message can move entire currencies, imagine what significant global events can do. The India-Pakistan conflict in May 2025 led to the Indian rupee experiencing its worst single-day decline in over two years, with a drop of approximately 1% against the U.S. dollar.

Hence, you must keep track of trends that could potentially impact your transfers. Watch these patterns for just a few days, and you'll start spotting when rates typically peak.

Let technology do the heavy lifting.

Yes, as exchange rates fluctuate wildly and you can’t predict their direction, it’s essential to keep an eye on these fluctuations.

But staring at rates all day is neither healthy nor a productive use of your time. So what do you do?

Set up rate alerts instead and let the technology do the heavy lifting. Services like RemitBee ping you when rates hit your sweet spot (the targeted rate you prefer). It’s a lifesaver:

• No more stress watching
• No more hourly rate checks
• No more missed opportunities

You can go about your day without worrying about fluctuations and looking out for the best window to make your transfers. The moment the markets hit your desired rate, you’ll get an alert.

Skip weekends for transfers.

Forex markets close or operate with limited hours on weekends, meaning fewer participants (banks, traders, institutions) are active.

As the markets slow down, liquidity dries up, and rates get stingy — it means higher risk for providers, so they charge more to cover potential losses.

For example, on a Saturday or Sunday, the USD/INR exchange rate offered by money transfer services or banks often includes wider spreads (the difference between buying and selling rates).

On weekends (Saturday and Sunday), market activity is low due to markets being closed or operating at limited capacity. This results in low liquidity, and exchange rate spreads tend to be wider and less favorable. In practical terms, this means you could lose more INR per USD transferred, as providers adjust for the increased risk and reduced competition.

In contrast, on weekdays (Monday to Friday), markets are open and actively trading , leading to high liquidity . Exchange rates during these days are usually tighter and more competitive, which results in better transfer rates essentially, you get more rupees for your dollars.

That’s why it’s preferred to plan your transfers for busy weekdays instead, as competition keeps rates sharp during the work week.

Tip 2: Compare multiple transfer Services for better rates

Some providers advertise low or zero fees but offer poor exchange rates with hidden markups. Others charge transparent fees but provide near mid-market rates, saving you money overall.

The gap between best and worst rates can absolutely crush your transfer value, as some services quietly pocket hundreds while others actually play fair.

Without comparing rates and fees, you may unknowingly lose hundreds or even thousands of rupees on large transfers.

Use comparison tools that offer real-time rates.

You can visit the official websites of these service providers and find out exactly what rate they are offering. You can also use RemitFinder and similar online currency tools that display real-time rates across all providers.

That eliminates the guessing game and the need to call service providers for an hour-to-hour update. You can easily find out who offers the best value in seconds flat.

Ignore the upfront fee trap completely.

Low fees don't always mean low costs. This is where they get you. Sneaky providers hide brutal markups in exchange rates and then display "minimal fees" in your transaction details.

They're betting you won't do the math, and that's essentially true for a lot of people. For example, if the mid-market rate is ₹61 per CAD, a provider might offer ₹59.20 instead, effectively charging a hidden fee of approximately 3%.

On a $10,000 CAD transfer, this can mean nearly ₹18,000 less received than expected, far outweighing any advertised low fees.

Additionally, banks and intermediaries often apply SWIFT and processing fees that further reduce the final amount. This markup is rarely shown separately and can add up to 1-3.5% above the market rate, quietly eating into your transfer value.

So, even if the visible fee appears low, the actual cost may be significantly higher due to these hidden exchange rate markups and other charges.

Consider transfer speed options when available.

Most money transfer providers offer standard delivery speeds, but some services like Remitly provide both express and economy options. When these speed choices are available, faster transfers typically cost extra through either higher fees or worse exchange rates.

If your transfer isn't life-or-death urgent and you have speed options, the economy choice often delivers better value.

For example, with Remitly, sending $1,000 CAD via express might get you ₹59,500 INR, while choosing economy could earn you ₹800-1,000 INR more. Those extra hours of waiting can mean significantly more rupees hitting your recipient's account.

Hunt for promotions but compare promotional vs regular rates.

First-time user deals can slash costs, just like seasonal promotions. But here's the critical part: always compare the promotional rate with the provider's regular ongoing rates.

Many companies offer attractive first-transfer rates to hook new customers, then switch to significantly worse rates for subsequent transfers.

Some providers don't even clearly highlight that their advertised rate is a limited-time promotional offer that will change after your first transaction or when you transfer larger amounts.

Before committing to any provider, ask these key questions:

• What rate do you offer after the first transfer?
• How do your regular rates compare to competitors?
• Does this promotional rate apply to all transfer amounts, or only smaller ones?

For example, Provider A might offer ₹60.5 per CAD for your first transfer, but then drop to ₹58 for regular transfers.

Meanwhile, Provider B offers ₹59.8 consistently for all transfers. In this case, Provider B delivers better long-term value despite the lower initial rate.

Read every word of that fine print, as some "special offers" come with worse exchange rates attached. For example, ₹58.5 per CAD instead of ₹61.

Although the fee is waived, the poorer exchange rate can result in thousands of rupees in additional costs for large transfers.

Similarly, seasonal promotions may advertise low fees but include hidden markups in the exchange rate.

The key is to calculate the total cost (including both fees and exchange rate) for both promotional and regular transfers, rather than focusing solely on the advertised discount, to avoid paying more overall despite the special offer.

Tip 3: Understand transfer fees and hidden charges

Money transfer fees work differently than you might expect. Hence, understanding all the costs upfront helps you choose the best service and avoid expensive surprises.

Know the three usual culprits that mess with your transfer fees

Every transfer faces three different predators that could monetarily punish you if you don’t understand what different costs mean and how they work:

Flat fees: These charge the same amount regardless of the amount sent. If the flat fee is $5, you pay $5 whether you send $100 or $1,000. This makes flat fees better for larger transfers.

Percentage fees: These take a slice of your transfer amount. A 1% fee means you pay $1 on a $100 transfer, but $10 on a $1,000 transfer. These fees increase with the size of your transfer.

Payment method fees: These depend on how you fund your transfer. Credit cards often trigger cash advance fees from your bank (usually 3-5% plus interest). Debit cards and bank transfers typically incur no additional costs.

Therefore, you should opt for a money transfer service like RemitBee, which charges clear, flat rates for transfers under $500 CAD. That way, you know exactly what you're paying upfront. Don’t overpay on hidden charges see our guide on send money without paying extra fees .

How exchange rate markups work.

The real money drain happens in the exchange rate. It’s a little more sophisticated than that.

So, the mid-market rate is the "true" exchange rate you see on Google or financial news. It's the rate banks use when trading with each other. Now, many transfer services advertise this mid-market rate, then add a hidden markup of 2-4%.

This means if the real rate gives you ₹82 per dollar, you might only get ₹79 per dollar after their markup. On a $1,000 transfer, this 3% markup costs you ₹2,460 (approximately $30). That's often more than any upfront fee.

Calculate the total cost.

Your focus should be on what your recipient actually gets in their hands, not what’s being advertised. Hence, to find the best deal, calculate what your recipient actually receives:

1. Take your send amount
2. Subtract all fees
3. Multiply by the actual exchange rate offered
4. Compare the final amount across different services

A service with higher upfront fees but better exchange rates often delivers more money than "zero-fee" services with poor rates.

Tip 4: Choose the right transfer method for your needs

Different transfer methods offer different combinations of speed, cost, and convenience. Understanding these tradeoffs helps you choose the best option for each situation.

The key is matching the transfer method to your specific needs rather than always using the same approach.

How different payment methods work.

There are several methods available for you to make your transfer, and the key is to choose the one that fits your situation.

Bank Transfer/EFT (electronic funds transfer)

Bank transfers and EFT typically provide the best overall value. They offer competitive exchange rates and low fees, though they take 1-3 business days to process. This method works well for regular, planned transfers.

EFT allows you to link your bank account directly to the money transfer service, enabling automatic debits for your transfers. Many providers offer better rates for EFT payments since they have lower processing costs compared to card transactions.

Interac e-Transfer

Interac e-Transfer is a popular Canadian option that many money transfer services now accept. While convenient and familiar to most Canadians, e-Transfer typically comes with:

• Higher fees compared to direct bank transfers
• Processing times of a few hours to 1 business day
• Daily and weekly limits (usually $3,000 CAD per day, $10,000 CAD per week)
• Potential additional charges from your bank (Around $1-1.50 CAD/e-Transfer)

e-Transfer works well for smaller, occasional transfers, but may not be cost-effective for larger amounts due to the fee structure and limits.

For example, on a $5,000 CAD transfer, the e-Transfer fee plus potential rate markup could cost you an extra ₹1,500-2,500 INR compared to a direct bank transfer.

Bill payment

Some money transfer providers allow you to fund transfers through your bank's bill payment system. You add the provider as a payee in your online banking and send funds, just as you would for any other bill.

Advantages

• Can often be scheduled in advance
• Familiar process for most Canadians
• Uses your existing online banking security
• No additional fees beyond what the transfer service charges

Disadvantages

• Takes 1-3 business days to process
• Limited to business hours processing at some banks
• May have daily/monthly limits depending on your bank

Debit cards

While debit cards enable faster processing, they often include additional fees from both the transfer service and your bank. Your bank may charge this as a cash advance or international transaction fee, adding 1-3% plus potential daily fees.

Some Canadian banks also charge foreign exchange fees for domestic money transfer services, so be sure to check with your bank about their specific debit card policies for money transfers. On a $2,000 CAD transfer, these combined fees could reduce your recipient's amount by ₹600-1,200 INR.

Credit cards

Credit cards typically carry the highest fees and may incur cash advance charges of 3-5% plus interest, which begins accruing immediately. Most experts recommend avoiding credit cards for money transfers unless absolutely necessary.

Additionally, credit card funding often results in:

• Lower transfer limits
• Potential impact on your credit utilization ratio
• Immediate interest charges with no grace period
• Higher exchange rate markups from the transfer provider

Which method should you choose?

You need to choose a payment method that best suits your needs. Here’s a breakdown of how we would suggest you take it up:

Consider your recipient's banking situation.

Recipients with bank accounts can receive direct deposits, which are usually the most cost-effective option. The money is deposited directly into their account with good security.

However, recipients without bank accounts need alternative pickup methods. Mobile wallet services, such as Paytm or PhonePe, are particularly effective in urban areas.

These transfers go through India's UPI (Unified Payments Interface) system, which has revolutionized digital payments across the country.

UPI enables instant transfers to mobile wallets and bank accounts linked to phone numbers, making it one of the most convenient and widely-used receiving methods in India today.

Cash pickup locations often serve rural areas but typically come with higher costs.

Moreover, recipients in remote areas may only have access to cash pickup services, even though these carry higher fees. Services like Western Union or MoneyGram have extensive pickup networks.

Some providers also offer direct deposits to prepaid cards, but those come with high fees and lower exchange rates, making them less attractive than traditional bank deposits or UPI transfers.

Tip 5: Maximize value with larger transfers or bulk payments

Transfer fees work on a per-transaction basis, not per dollar. This means making multiple small transfers costs significantly more than sending the same total amount in fewer, larger transfers.

So, understanding this structure helps you plan more cost-effective transfers.

How do transfer fees scale with transaction size

Most money transfer services employ a combination of fixed fees and percentage-based fees, which often decrease as transfer amounts increase.

Your $2,000 transfer often costs way less per dollar than two separate $1,000 transfers.

So, fixed fees apply to every transfer regardless of the amount. If a service charges $5 per transfer, you pay $5 whether you send $100 or $1,000.

While percentage fees often decrease for larger amounts. Many services offer better rates once you cross certain thresholds.

For example, a service might charge:

• 1.5% fee on transfers up to $1,000
• 1.2% fee on transfers between $1,000-$5,000
• 1.0% fee on transfers above $5,000

Here's how the math works out when comparing multiple small transfers to fewer large ones over the same period.

Sending $200 five times per month:

• 5 transactions × $5 fixed fee = $25 in fees
• Plus 5 separate exchange rate spreads

Sending $1,000 once per month:

• 1 transaction × $5 fixed fee = $5 in fees
• Plus 1 exchange rate spread
• Total savings: $20 per month

When consolidating transfers makes sense

Consolidating works best when both you and your recipient can handle the timing change without creating financial stress. Consider the following common scenarios where larger, less frequent transfers are effective.

For regular family support: Instead of weekly $250 transfers, consider monthly $1,000 transfers if your family can manage the timing.

For business payments: Batch multiple supplier payments into larger, less frequent transfers when possible.

For education expenses: Send semester fees in a single transfer rather than making monthly tuition payments.

Important considerations before consolidating

Before switching to larger transfers, consider how this change will impact both your budget and your recipient's financial planning. These factors can make or break the strategy.

Your recipient's cash flow needs: Make sure they can manage with less frequent, larger amounts.

Your own budget: Only consolidate if you can comfortably send larger amounts without financial strain.

Exchange rate timing: Larger transfers mean more exposure to rate changes, which can work for or against you.

Account verification for higher limits

Transfer services typically require identity verification before allowing large transfers. Completing this process early gives you access to better rates and higher limits.

Most services require verification to unlock higher transfer limits. This typically involves:

• Providing a government ID
• Proof of address
• Sometimes, income verification for huge amounts

Verified accounts often get access to:

• Higher daily and monthly limits
• Better exchange rates on large transfers
• Priority customer service

Plan ahead and complete verification before you need to send large amounts, as the process can take several days.

Consolidate transfers to slash your costs.

Stop bleeding money on multiple tiny transfers. Instead of sending $200 every month, consider $600 quarterly if your cash flow allows it. Each transfer you avoid saves fees and gets better rates.

Your recipient gets more money. You pay less to send it. Everyone wins except those greedy fee collectors.

Stop losing money on every transfer to India with RemitBee

You now know the secrets. But knowing and doing are two different things.

Most people read guides like this, nod along, and then go back to using the same expensive transfer service that has been quietly stealing their money for years.

Don't be most people. Switch to RemitBee and enjoy:

• Transparent flat fees with no percentage markups are eating your transfer alive
• 1 day delivery that’s fast enough for urgent needs, cheap enough for regular use
• Fee-free transfers on amounts over $500 CAD
• We offer highly competitive exchange rates
• We'll ping you when rates hit your target

Send Money to India with RemitBee

Join thousands of Canadians who've already made the switch.
Your first transfer shows you exactly how much you've been overpaying.

Frequently asked questions

Here are some frequently asked questions about this topic:

How do you get the best exchange rate when transferring money?

To get the best exchange rate, monitor currency trends and set up rate alerts with your transfer service. Compare different providers, and choose one that offers the mid-market exchange rate with low fees.

What is the best time to send money to India?

The best time to send money is when the exchange rate is favorable. Monitor trends and avoid sending money during weekends or holidays when the market tends to be less active, leading to poorer rates.

Which app is best for sending money from Canada to India?

RemitBee is a great option for sending money to India from Canada. It offers competitive exchange rates, low fees, and fast transfers, especially for amounts over $500 CAD, where you can benefit from fee-free transfers.

How to easily transfer money to India?

To transfer money easily, use a user-friendly transfer service like RemitBee, which provides simple mobile or online transfers, along with real-time tracking and transparent fee structures.