Find the best way to send money to China

Looking for a way to send money to family, friends or a business in China (or even to your own bank account overseas)? According to MoneySmart, you should avoid Australian banks and go with a money transfer specialist to get better CNY exchange rates and lower fees on international transfers.

Based on the providers we've compared, Revolut is among the cheapest, with competitive exchange rates and fees starting from $0. Need a really fast transfer? Rocket Remit can get money to your recipient in China within minutes.

Best ways to send money to China from Australia

• Online money transfer provider. When buying Australian dollars or Yuan Yuan renminbi, money transfer specialists typically offer better rates and cheaper fees than a local bank.
• Bank transfer. Bank transfers are an easy way to send money to China but they charge extra for the convenience and are often slower. Australian banks generally add a 3% to 6% markup onto exchange rates. Based on our research, NAB adds a markup of 3% when converting AUD to CNY.
• Cash pickup. If you need your money to arrive quickly, doing a cash pickup with Western Union or Remitly gives your recipient instant access to the money sent and they can collect it from an agent location in China.
• Mobile wallet. Mobile wallets such as Alipay allow users to store, send and receive eligible currencies using their phone, often with fees attached.
• Prepaid phone credit. Specifically used to top up a recipient's prepaid mobile phone plan, prepaid phone credit is usually added instantly or within a few minutes.
• Home delivery. If your recipient may struggle to get to a cash pickup location, you may be able to opt for door-to-door cash delivery.

Compare the best money transfer companies to send money to China

Cheapest way to send money to China

As reported by the ACCC, bank transfers are typically the cheapest way to get your money to China. Revolut and Remitly have some of the lowest bank transfer fees of the brands we've compared.

Remember, it's more important to look at the overall cost of your transfer to China and this has a couple of elements:

• Transfer fees. While still cheaper than your Australian bank, money transfer services charge either a fixed or percentage-based fee for making your transfer.
• Exchange rates. Another way money transfer providers make money is to add a margin to the mid-market AUD/CNY exchange rate.

Certain providers may give the mid-market rate but add fees on top and others will have low fees but apply a markup on the exchange rate. This means it is important to compare exactly how many Yuan renminbis your recipient will end up with.

Fastest way to send money to China

Actual transfer times from Australia to China can depend on several factors including transfer amount, payment method and currency.

Here are some of the fastest average transfer speeds to China:

• Revolut — within minutes
• Rocket Remit — within minutes
• Instarem — within minutes

Safest way to send money to China

The safest way to get your money to China is using a provider registered with Australia's industry regulator, the Australian Transaction Reports and Analysis Centre (AUSTRAC). All of the companies we've compared in our table are overseen by a local regulator and comply with the relevant laws and regulations in both Australia and China.

A great way to dive deeper is by reading our reviews of each transfer service and researching first-hand customer feedback on Trustpilot and similar platforms.

Large money transfers to China

If you need to make a sizable money transfer to China, consider using a provider such as TorFX or OFX to secure a better CNY exchange rate and benefit from its expertise handling larger transactions.

Using a large transfer specialist can have the following advantages:

• Tax guidance. Large transfers to China may have tax implications for you or your recipient. A transfer specialist can help get you up to speed on the Australian Taxation Office's latest advice.
• Foreign exchange tools. Advanced tools such as forward contracts, limit orders and stop-loss orders can help you lock in the CNY exchange rate you want.
• Account manager. Some money transfer providers assign a personal account manager who can offer advice and help facilitate transfers.
• Phone service. If you want to talk your transfer through with someone, providers such as TorFX and OFX can provide support over the phone.

Example: Wang transfers money to China

Wang is working in Australia as a financial analyst and he stays in regular contact with his elderly parents back home in China. His parents need some funds to help pay off a mortgage, so Wang plans to send them $2,000 from Australia.

He decides to compare a bank and a money transfer specialist to see which one can save the most money on his transaction.

	Bank	Money transfer company
Exchange rate	1 AUD = 4.62 CNY	1 AUD = 4.68 CNY
Transfer fee	$10	$2.50
Transfer method	Bank account deposit	Bank account deposit
Processing time	2 - 5 working days	Next day
Amount received	9,195.98 CNY	9,352.84 CNY

The money transfer company enables Wang to send an extra ¥156.86, which is transferred straight to his parents' Bank of China account.

How to choose a money transfer company for China

When selecting a provider to transfer money to China, here are the main factors to consider:

• Exchange rates. Banks and transfer services use the mid-market rate to trade with one another. However, not every money transfer provider offers the mid-market rate so compare the CNY you're offered to the mid-market rate to calculate the margin.
• Transfer fees. Are you being charged a flat fee or a percentage of the transfer amount? A provider offering to transfer your money to China for a flat or low fee might work out better if you're sending a large amount.
• Transfer type. Does your recipient have a Chinese bank account or is cash pickup a better option? Each transfer type will have different fees. For example, instant cash pickups tend to be more expensive than bank transfers.
• Transfer speed. If you need your transfer to arrive quickly, you can pay for an express delivery. Companies such as WorldRemit offer instant cash pickups but may charge more. If you're not in a rush, online money transfer services offer the best value.
• Transfer limits. Find out how much you can send with each service. For example, Rocket Remit has a transfer limit of $1,000 while Revolut allows unlimited transfers.
• Discounts. Providers may offer you a free transfer simply for signing up. Others may give a discount for transferring more than a specific amount of Yuan renminbis.

Is this a good time to send money to China?

Compared to a month ago, the Australian dollar is stronger against the Yuan renminbi. Currently, $5,000 is worth ¥23,529.00, whereas a month ago, $5,000 was equivalent to ¥23,183.50. That's an increase of 1.49% over the past month.

Similarly, compared to a year ago, the Australian dollar is again stronger against the Yuan renminbi. A year ago, $5,000 was equivalent to ¥23,064.50. That's an increase of 2.01% over 12 months.

So based on those two data points, yes, it's a relatively good time to send money to China, and your Australian dollars will go further than they would have. But what's more important, however, is the strength of the Australian dollar against the Yuan renminbi and where it goes from here – which is harder to call.

Frequently asked questions

• How can I pay for my transfer to China?

  The most common payment methods for money transfers to China include bank transfer, credit card and debit card. How you pay can influence how quickly your Yuan renminbis arrive and the total cost of your transfer, so consider both when deciding.

• What details do I need to send money to China?

  • Photo identification: Most providers require a driver's license, passport or other Australian government-issued ID.
  • A way to pay: Your options depend on the provider's services. Popular methods include cash, debit or credit card and bank account transfers.
  • Recipient information: You'll need their name (matching their ID) plus contact details. If sending to a Chinese bank account, you'll need their account number, SWIFT and branch details.

• What is required to receive money in China?

  • Transfer number: The reference number – sometimes called a PIN, MTCN or tracking number.
  • Government-issued ID: An official ID, such as a Chinese passport or driver's license.
  • The transfer amount: To know how much has been sent, usually to within 10% of the total.
  • Sender information: The sender's name and address and the transfer's country of origin.

• How much money can I send online to China?

  Each provider has its own sending limit. For example, Revolut and Instarem allow you to transfer as little as $1 while others will have a much higher minimum threshold.

  Remember that some providers will have different maximum transfer amounts as a result of Australian tax policies or because their service is more limited.

• How long will it take for my money to arrive in China?

  The turnaround time for a money transfer to China depends on the provider and how you pay for the transfer. Expect your transfer to arrive within minutes if you pay using cash or with a debit or credit card. Paying by bank transfer can take longer – usually 2–5 business days.

• Can I send money to China without a bank account?

  Yes, you can still send a money transfer if neither you nor your recipient in China has a bank account. Look at cash transfer providers such as Rocket Remit where you can pay with cash and your recipient can collect it as cash or as mobile phone reload on the other end.