When sending money abroad, it is easy to focus on the transfer fee but overlook the exchange rate, which can make a significant difference in the value you, as the sender, receive, or the reason the receiver receives the full amount they need or comes up short.
Imagine you are sending $1,000 from Canada to Nigeria, at a rate of ₦1,200 per Canadian dollar, your recipient would get ₦1,200,000. But if the provider adds a hidden markup and offers ₦1,150 instead, your family gets ₦50,000 less. And this can happen without any change in the “transfer fee.” That’s the invisible cost of a poor exchange rate.
Understanding how exchange rates work and why they fluctuate is very important, so you can use them to your advantage.
Understanding Exchange Rates And How To Use Them To Your Advantage
To break it down, an exchange rate tells you how much one currency is worth in another. These rates are determined by the foreign exchange (forex) market. Also, the foreign exchange market is where currencies are traded globally.
Factors that affect exchange rates include:
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Inflation: Countries with lower inflation typically see their currency value rise compared to others.
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Interest rates:Higher interest rates often attract more investment. So, it boosts currency demand and value.
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Political Stability:Investors favor stable countries, which can strengthen their currency.
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Market Speculation: Traders buying and selling currencies based on predictions can push rates up or down.
Exchange rates don’t sit still; they can change by the day or even by the hour. That’s why timing and transparency matter when you’re sending money abroad. But before we show you how to make the most of them, you also need to understand how hidden fees also affect the value you’ll get for your international transfers.
The Hidden Costs Of Transfers
Traditional banks and some money transfer companies often advertise “low fees”. However, they hide their profit in the exchange rate. They provide you a rate that’s lower than the real mid-market rate and keep the difference.
For example:
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Mid-market rate: ₦1,200 for 1 CAD.
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Provider’s rate: ₦1,150 for 1 CAD.
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On a $1,000 transfer, you lose ₦50,000, effectively an extra fee you never see.
These hidden markups can cost you far more than a flat transfer fee. Especially for large or regular transfers. Imagine losing ₦50,000 every day because of a poor exchange rate.
How To Get The Best Rates: Timing, Tools, And Transparent Platforms
Winning the exchange rate game is about three things:
1. Checking rates before you send.
This helps you avoid providers with large markups.
2. Timing your transfers.
If you see the currency strengthening, you might wait (if your transfer is not urgent).
3. Choosing a transparent provider.
One that shows you the real rate and lets you transfer at that rate without hidden costs.
This is exactly where CadRemit comes in, the cross-border deal platform to send money from Canada, the USA, and Europe to Nigeria with great rates and no hidden charges.
Getting The Best Exchange Rate With CadRemit’s Currency Converter
One of the biggest challenges in remittances is knowing exactly how much your money will be worth after conversion. CadRemit solves that with its Currency Converter, which gives you real-time, accurate exchange rates so you can plan your transfer.
How it works:
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1. Add the amount you want to send.
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2. Choose if you want to convert CAD to NGN, USD to NGN, or Euro to NGN.
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3. View the conversion instantly with the exact rate CadRemit will use when you transfer.
There are no surprises. What you see in the converter is the rate you get when you send money on the CadRemit app.
Benefits:
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Real-time accuracy: Based on the latest market data.
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No hidden markups: Transparent, honest rates.
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Instant decision-making: See if today’s rate is favorable before sending.
This means you’re in control, whether you’re sending money for family expenses, tuition fees, or business payments.
Regions You Can Send Money To With CadRemit
CadRemit supports multiple high-demand remittance countries. This gives you flexibility and choice:
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From Canada to Nigeria, the USA, and Europe.
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From the USA to Nigeria, Canada, or Europe.
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From Europe to Nigeria, the USA, or Canada
This broad coverage means you can send money to your family, friends, or business partners quickly and securely and benefit from CadRemit’s competitive rates.
How To Use CadRemit To Get Value For Your Money
If you want to get the most value out of your transfers, here is how:
1. Check Rates Daily
Exchange rates move constantly. Use CadRemit’s Currency Converter to track rates before sending. Over time, you will learn when your currency is stronger against the recipient’s currency.
2. Plan Non-Urgent Transfers
If your transfer isn’t urgent, wait for favourable rates. Even a difference of ₦20 per CAD or USD can add up significantly on large transfers.
3. Use Instant Transfers For Urgent Needs
CadRemit gives you the choice of speed. If the recipient needs the money now, you can send it instantly at the same transparent rate you see in the converter.
4. Leverage CadRemit Rewards
With the new CMT Points reward program, your transfers don’t just move money. They also earn you points that can be converted to any of our supported currencies. So while you focus on the exchange rate, you’re also getting rewarded.
You could be losing money on transfers if you’re sending at high exchange rates, or if your platform hides extra fees in its rates. Those hidden markups quietly eat into the amount your recipient gets.
So how do you fix this? Start by understanding how exchange rates work, use tools like CadRemit’s Currency Converter to check the real rate before you send, and then transfer with CadRemit to get the best value for your money.
Clinton Nwachukwu
CadRemit Editorial
