Pivotal Factors to Consider When Transferring Money to Germany

Rothenburg ob der Tauber, Germany at TwilightThere is a lot to consider if you’re transferring money to Germany from Canada. Choosing a provider and method of transfer can be complicated and you want to make sure you’re making the right choice. At the Currency Shop, it’s important to us that you get the best possible value for your money and we know trying to find the best method for your transfer can be overwhelming.

To help you out, we’ve put together a guide below of all the options we think are best in terms of convenience, ease, and value.

For a quick comparison table of exchange rates and fees, click here.

What will this guide cover?

This guide will cover:

  • Personal transfer – sending money to family or friends in Germany
  • Business transfer
  • Buying or selling a property in Germany
  • Studying Overseas
  • General costs of sending money to Germany
  • Your options to send money to Germany
  • Information you’ll need for the transfer
  • General information

Not Germany you’re after? Read about how to send money to Italy, here.

Personal transfer from Canada to Germany

You can set up a personal transfer from Canada to Germany through a number of methods:

Your bank:

All Canadian banks will support the Euro (EUR), however, they will charge you a high international transfer fee, as well as an uncompetitive exchange rate, but it is an option.

Money transfer companies:

These companies will offer you a better exchange rate and lower fees. Here are some providers that transfer money from New Zealand to Germany:

Our recommendation is OFX due to great value on transfers between CAD and EUR.

Business transfer from Canada to Germany

If your business is transferring money between Canada and Germany, there are two critical things you must consider when finding the best option:

  1. The exchange rate margin: This is the difference between the wholesale exchange rate (www.xe.com) and the rate you will get.
  2. Business products they offer such as forward exchange contracts, foreign currency accounts and limit orders.

You can use any of the money transfer companies listed above. Our choice for business transfers to Germany are HiFX– their exchange rates and zero fee structure will allow you to maximise your overseas receipts or payments. They also offer Foreign Currency Accounts; helpful if you would like to hold the funds a foreign currency and exchange them at a favourable time.

Buying or selling property in Germany

If you are looking to buy a property in Germany, or have sold your property in Germany and needing to send the money back to Canada, we recommend that you look for a provider that has a strong presence in both countries. This will give you local support either side, as well as the flexibility you may need leading up to the settlement.

Our choice would be TorFX for property settlement transfers, as you (the customer) are assigned a local account manager that will be licensed and have a strong global support network to guide you when needed.

Studying overseas

As much as we would like them to, tuition fees aren’t getting any cheaper. Annual payments to universities or other education providers, along with all other expenses, can really add up, particularly abroad. As these payments can be large, you need to know the best method of payment before moving your funds.

  • For larger payments, you should be keeping a keen eye on the exchange rate you’re getting as this will largely affect the amount of money you will get in the foreign currency at the end.
  • For smaller payments, you should keep an eye on the transfer fees.

There are many methods of transferring funds abroad, but we would HiFX as they are great for saving on those hefty costs when paying for bills.

General costs for sending money to Germany

Uh-oh. Time to put together the fees. Calculating the costs can be difficult, as nearly all fees, charges and exchange rates are dependent on how much are you sending, method of sending and method of receiving. The most common fees are as follows:

  1. A transfer fee
  2. Exchange rate margin: the different you will pay between the wholesale exchange rate on xe.com and the rate you will actually get
  3. Bank fees: The fees that you bank will charge for sending the money to the correct account overseas.
  4. Receiving bank fees: The fees the receiving bank will charge you for converting into the correct currency.

Your options for sending money to Germany

There are various methods of sending money to Germany:

Via your bank

Using your bank is an easy and quick way to transfer fees and can normally send the money successfully within 3-5 business days depending on your bank. Generally, banks will have uncompetitive exchange rates which make them unattractive if you’re sending large amounts of money abroad.

Check with your bank and research the fees and exchange rates based on the amount you plan to send over.


Paypal is a convenient and highly popular way of transferring money abroad, and by far the quickest with transfers being completed within minutes (dependent on the type of transfer). It is great for smaller amounts (under $1000CAD) as although the exchange rate is equal to those of banks, the fees are slightly less. It’s particularly handy if you are paying from your own Paypal account directly into another Paypal account.

A money transfer company

There are an overwhelming amount of money transfer companies out there – some older but trustworthy, and others newly emerging in the technological, app-age. In general, these companies are your best option when transferring larger amounts of money (anything between $1000 – $1,000,000CAD). Different companies will have various minimum and maximums set, and the transfer itself will usually take around 1 business day longer than banks or Paypal.

You will need to create an account with the company before sending the money – you can do this online:

  • Register your details on the website – you will likely need I.D handy
  • Account needs to then be approved, and you’ll get your login details
  • Enter the bank details of where you are sending the money i.e. the ‘Beneficiary’ or ‘Recipient’
  • You will get a quote based on the fees and exchange rate for sending the money
  • If you are happy, confirm the details including the given rate.

Information you’ll need for the transferring money to Germany

You’ll need the details of the bank account you are sending the money to i.e. the Beneficiary or Recipient details. These details will be:

  • Account name of your Recipient
  • Their address
  • Their SWIFT code

SWIFT codes

Swift codes for the biggest banks in Germany:

Deutsche Bank AG : DEUTDEFFXXX

Commerzbank AG : COBADEFFXXX




General Information

There are pros and cons to every method of payment you choose. Paypal and money transfer companies like Western Union (who offer cash pick-up) are your fastest options, with transfers being completed within minutes. Paypal will not offer a competitive exchange rate, like Western Union, but it is arguably a lot more convenient. Banks will take 1-2 business days and other money transfers companies will take roughly 2-3 business days.

Do check the details of your chosen method, as all will have their own restrictions, fees and charges. Banks and Paypal will not have a minimum amount, but most money transfer companies will so do check before you send.

Case Study

Katharine has moved from Germany to Canada on a working holiday visa. As she will be in Canada for at least a year, she has decided to set up a bank account with a Canadian Bank.

Katharine wants to send home some money to her brother for his birthday and decides to do it through her bank. It was processed fast, with minimum hassle and her brother receives the payment exactly on his birthday.

What Katharine didn’t realise is by transferring outward international payments, the exchange rate and the fees are all deducted from the amount being transferred and converted, so when Katharine’s brother told her how much she paid in EUR, she was upset to know he didn’t get the amount she wanted him to. Consequently, Katharine sent another transfer to make up the difference, costing her more money in fees.

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