Whether you're sending money home to family, friends or your own bank account overseas, you need to research. Most people still use banks but they charge extra for the convenience. Money transfer services focus on one thing: sending money across borders. Compared to Australian banks, these providers typically have lower fees, stronger exchange rates and more options to send and receive cash.
Cheapest ways to transfer money internationally
1. Online money transfer services
Based on our experience, money transfer services provide the best value for money. Banks struggle to compete as they offer multiple financial products while money transfer providers specialise in foreign exchange. Transfer specialists normally add a margin of 0.4% to 2% onto the mid-market rate. Funding your international transfer via bank transfer is the cheapest option, some providers charge extra fees for credit card and debit card payments.
2. Bank transfers
Major Australian banks can safely transfer your funds but are more expensive, especially for large transfers. Banks rely on existing links between banks and banking systems worldwide and it'll often be called a telegraphic transfer. However, two downsides are the high fees and weak exchange rates you'll receive in comparison to other options. If you're sending AUD $5,000 to the US, Commbank will add a margin of around 4.13% on to the exchange rate.
3. Cash pickup
Cash pickup services can be a convenient and quick way to get your money to more exotic destinations. And a particularly useful option if your recipient doesn’t have a bank account. Western Union and Remitly offer cash pickups - sometimes within minutes. Once processed, your recipient generally has instant access to the funds at a specific location.
4. PayPal
Known for digital payments, PayPal offers transfers to over 200 countries and supports 25 currencies. This is useful if you and your recipient both have PayPal accounts. PayPal calculates its transfer fee as a percentage of the amount you're sending - meaning it's often better for sending smaller amounts of money. Its exchange rates are similar to banks, if not slightly worse.
5. International money order
You can get an international money order, similar to a cheque, issued by your bank or local Australia Post Offices and mailed to your recipient. There’s a charge for the printed money order and you’ll have to pay the amount you wish to send upfront. While money orders can be issued and sent straight away, they will take a couple of days to reach your recipient. Your recipient may be charged a fee by their own bank to cash in the money order.
6. Bitcoin
Although complex for the average person, it’s possible to use Bitcoin to send money overseas. You and your recipient both require Bitcoin wallets. You can load your wallet with AUD that is then converted to Bitcoin and transferred to your recipient overseas via a decentralised network. Your recipient then receives your Bitcoin in their wallet and can convert and withdraw it in their chosen currency. However, the value of Bitcoin is volatile, and there may be additional risks associated with using it for money transfers.
Compare money transfer services to send money overseas
Finder survey: What do people think is the cheapest way to transfer money overseas?
Response
Female
Male
I do not send money overseas
46.22%
37.11%
Bank transfer
29.53%
30.8%
International money transfer
16.34%
22.82%
Mobile wallet
4.75%
6.12%
Cash pickup
2.11%
1.86%
Money order
1.05%
1.3%
Source: Finder survey by Pure Profile of 1110 Australians, December 2023
Best providers to send money overseas
We’ve highlighted four of the top providers to cover every scenario:
XE - small transfers
If you wish to send a small amount to your recipient of money overseas, for example, under $2,000, certain money transfer services specialise in small international remittances. XE doesn’t charge transfer fees but instead, adds a margin to the exchange rate so check your happy with the amount your recipient will receive. XE’s online currency calculator won’t show you how much your transfer will cost as it only shows the mid-market rate. Once you create an account, you can see the exchange rate you’ll get.
TorFX - large transfers
If you need to send a large amount of money to your recipient, for example, more than $10,000, TorFX allows you to do so with no added transfer fees. Instead, it adds a markup to the exchange rate. There’s no limit on how much you can transfer when TorFX handles your transfer over the phone. However, you will be limited to sending up to $50,000 when using its online services.
Wise - exchange rates
If you’re after the best exchange rate going, you can’t get any better than the mid-market rate. This is the “true” exchange rate between two currencies that the banks and other money transfer services use. Banks and other money transfer services will usually add a markup to this rate in order to make a profit, which can vary from 0.1% to 10%. However, there are select services that don't. Wise is renowned for passing on the mid-market rate to customers so you’ll always get the “true” exchange rate alongside transparent fees.
Remitly - cash pickups
If your recipient doesn’t have a bank account, one of your options is a money transfer with cash pickup. Remitly offers cash pickups delivered to specific locations and can send money to more than 100 countries. Your recipient will need to bring an ID that matches the name on the transfer but you can choose how to pay for it and how quickly you need the funds to reach your recipient.
How to minimise costs when making a money transfer
Shop around. The best way to save is by comparing rates, fees and transfer speeds of each provider, closely looking at their benefits and drawbacks. Use your currency's mid-market rate as a baseline to compare against the rates you're offered. You want a provider whose rate is closest to the mid-market rate with the lowest transfer fees.
Be aware of hidden fees. Avoid surprises by reading the fine print for fees that could apply to your transfer, including charges your recipient will need to pay.
Forex tools. Movements in an exchange rate can be unpredictable. However, with a forward contract, you can lock in a favourable exchange rate for a future transfer and avoid missing out. Similarly, with a limit order, a transfer will be executed only when your specific target rate is reached.
Sending larger transfers. Providers such as OFX waive fees when you send more than $10,000 in one go. Even the slightest change in the exchange rate can make all the difference in the amount your recipient receives.
Make regular transfers. You may be able to save money on exchange rates or pay lower transfer fees by setting up a plan to automate regular payments overseas.
How do I send money with a money transfer specialist?
Although the process differs by company, to send money overseas you'll generally need to do the following:
You'll provide your full name, contact info and date of birth. Most providers also require ID and proof of address.
Specify who is receiving the funds by providing their name and contact information. If you're sending money to a bank account, you'll need to include the bank name, SWIFT code and your recipient's account number.
Enter how much money you're sending and in which currency it'll be received.
For most providers, you'll see a summary of your transfer showing the amount you're sending, the exchange rate, any fee you'll pay and the total your beneficiary will receive.
Payment methods vary by company but could include credit or debit card, bank account, cash or mobile wallet.
You should receive confirmation that includes a tracking number or receipt for monitoring the progress of your transfer online or with a company branch.
How do I send money from my bank?
Please note that the process is different for every provider. The example below shows just one of the ways you can initiate a transfer.
You will also need to know your recipient's SWIFT/BIC code, account number and account name.
Choose which transaction account that you'd like the funds to come from.
Here is another version of what it could look like on your screen (Citibank).
One online money transfer service that doesn’t charge any transfer fees is XE. Instead, it adds a margin to the exchange rate so check that you’re happy with the amount your recipient will receive. You’ll need an account to get a transfer quote as XE’s online currency calculator only shows the mid-market rate.
Yes. There are multiple ways you can send money to a friend abroad, including making an online money transfer or a bank transfer. If your friend doesn't have a bank account, providers like Remitly, Western Union and MoneyGram offer cash pickup services at agent locations across the globe.
If you have the details of the bank overseas, then you can either use your bank to make the transfer or use a specialist money transfer provider. Depending on the service, the funds will arrive in a matter of days.
There is no limit on how much money you can send overseas from Australia. The most important thing to remember is that any amount over AUD$10,000 needs to be reported to AUSTRAC. This is to prevent money laundering or terrorist activity.
Transfer speeds vary greatly depending on the provider, where you're sending your money to, how you're paying and how your recipient will access your funds. It could be anywhere from 10 minutes to several business days. Be sure to confirm the timing of your transfer before handing over your money.
Once you're paid for your transfer, you will be given a transaction reference number. Use this number to check on the progress of your funds, often through your service's website.
Kate Steere is a deputy editor at Finder, specialising in fintech, cryptocurrency and banking. She has previously written for The Motley Fool UK and Fitch Solutions, where she covered a wide range of personal finance topics and kept a close eye on market trends. Kate has a Bachelor of Arts in Modern History from the University of East Anglia. When not working, she can usually be found curled up with a good book or heading out for a run.
I have got a US dollar account that I want to send to my son in Egypt and he doesn’t have a bank account. is there a way to send Us dollars from Australia?
Our guide for sending money to Egypt should guide you to the companies that can help you to send money to your son. You may also check with the provider if it is possible for your son to receive the amount in US dollars as well. Once you have chosen a particular provider, you may then click on the “Go to site” button to proceed with your transfer or get in touch with their representatives for further assistance. Hope this helps!
hi which is the best, cheapest and safest exchange company to send approx $15k to spain, from my AUD bank account, to a bank account over there? Looking for best ex rate too obviously.
thanks,
matt
Usually, transferring money from your bank account is an expensive way of sending money overseas. In the table above, you can compare different money transfer service providers. Using our comparison tool above, I’ve put your figures, and based on the results, the options that you may want to consider are:
Moneycorp and World First – both offer competitive rates too and without fees. World First takes 2 business days before the funds can be received while Moneycorp processes the transfer on the same day.
You would know if the service providers are safe and legit if they are registered and with ABN.
What is the cheapest way to transfer money from my Australian bank account (Australian dollars) into my US bank account (US dollars, with Wells Fargo bank)?
I need to send US$1,162 and later two instalments of US$581each, at different times. The recipient prefers not to use electronic transfer. How do I avoid high fees on sending these instalments and the hidden costs at the other end that will affect the transferred amount, and the recipient won’t receive the amount promised from me because of those hidden fees? Would you be able to help me please? Apparently my bank is not accepted in USA.
Since your recipient prefers to use electronic transfer it narrows down your options a lot. You may want to compare international money transfer services that allow cash pick up.
These services typically won’t charge you recipient fees and have relatively competitive exchange rates.
Usually international bank-to-bank transfers charge heft fees and exchange rates.
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I have got a US dollar account that I want to send to my son in Egypt and he doesn’t have a bank account. is there a way to send Us dollars from Australia?
Hi Elham,
Thank you for leaving a question.
Our guide for sending money to Egypt should guide you to the companies that can help you to send money to your son. You may also check with the provider if it is possible for your son to receive the amount in US dollars as well. Once you have chosen a particular provider, you may then click on the “Go to site” button to proceed with your transfer or get in touch with their representatives for further assistance. Hope this helps!
Cheers,
Reggie
hi which is the best, cheapest and safest exchange company to send approx $15k to spain, from my AUD bank account, to a bank account over there? Looking for best ex rate too obviously.
thanks,
matt
Hi Matt,
Thank you for your question.
Usually, transferring money from your bank account is an expensive way of sending money overseas. In the table above, you can compare different money transfer service providers. Using our comparison tool above, I’ve put your figures, and based on the results, the options that you may want to consider are:
You would know if the service providers are safe and legit if they are registered and with ABN.
Hope this helps.
Cheers,
May
Wanting to send money to friend in Lagos Nigeria
Hi Sharon,
Thanks for your comment.
If you want to send money to Nigeria, you can compare money transfer companies that can help you with our guide about sending money to Nigeria.
I hope this helps.
Cheers,
Anndy
What is the cheapest way to transfer money from my Australian bank account (Australian dollars) into my US bank account (US dollars, with Wells Fargo bank)?
Hi BWard Powers,
Thanks for your question.
This will depend on how much you intend to send, but our comparison tables show that World First, TorFX and OFX are worth looking at.
Hope this helps.
I need to send US$1,162 and later two instalments of US$581each, at different times. The recipient prefers not to use electronic transfer. How do I avoid high fees on sending these instalments and the hidden costs at the other end that will affect the transferred amount, and the recipient won’t receive the amount promised from me because of those hidden fees? Would you be able to help me please? Apparently my bank is not accepted in USA.
Hi Annette,
Thanks for your question.
Since your recipient prefers to use electronic transfer it narrows down your options a lot. You may want to compare international money transfer services that allow cash pick up.
These services typically won’t charge you recipient fees and have relatively competitive exchange rates.
Usually international bank-to-bank transfers charge heft fees and exchange rates.