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The cheapest ways to transfer money overseas
We break down the best ways to transfer money for cheap from Australia.
Key takeaways
- Online money transfer services commonly offer lower fees and better exchange rates than banks.
- Wise passes on the mid-market rate providing transparent pricing for international transfers.
- For larger transfers, some services waive fees like OFX for over $10,000 helping reduce costs.
While lots of people still use their bank to move money overseas, it's far from the cheapest option.
Compared to Australian banks, dedicated money transfer providers typically offer lower fees, better exchange rates and more options to send and receive cash internationally.
But there's a number of ways to send money overseas. We've ranked them below in terms of likely cost:
Cheapest ways to transfer money internationally
1. Online money transfer services
Based on our experience, money transfer services provide the best value for money for international transfers.
Money transfer providers specialise in foreign exchange and therefore offer much better exchange rates than the banks and other providers.
Transfer services like Xe and Remitly normally add a margin of 0.4% to 2% onto the mid-market rate (which is the exchange rate that banks and money transfer services use when transferring to each other).
Providers like Wise pass on the mid-market rate with no exchange rate margin, and charge a transparent transfer fee instead, making them one of the cheapest ways to send money overseas.
If you're looking to use a money transfer service, it's normally best to deposit the funds via bank transfer.
Some providers charge extra fees for credit card and debit card payments that can increase the cost of the transfer.
2. Bank transfers
Major Australian banks can safely transfer your funds but are more expensive than dedicated money transfer companies, especially for large transfers.
While some major banks now waive the fees on international money transfers, they make up for it by offering much less competitive exchange rates.
If you're sending AUD $5,000 to the US, for example, CommBank will add a margin of around 2.5% on to the exchange rate.
You can also be charged a separate transfer fee of up to $30 per transaction.
3. Cash pickup
Cash pickup services can be a convenient and quick way to get your money to more exotic destinations. It's also a 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.
However, cash pickups are likely to attract higher additional fees than using an online service.
4. PayPal
Digital payment processor PayPal offers transfers to over 200 countries in more than 25 currencies.
If you and your recipient both have PayPal accounts, it can be a convenient way to transfer money overseas.
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.
In terms of exchange rates, PayPal generally offers similar rates to the banks.
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.
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
Compare money transfer services to send money overseas
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How we picked these
Finder Score for money transfer
We review money transfer providers for different features to assign them a score out of 10. The higher the score, the more competitive the product.
Best providers to send money overseas
We’ve highlighted four of the top providers to cover every scenario:
XE - For small transfers
If you wish to send a small amount of money overseas to your recipient, 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 you're 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 - For 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 - For the best 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 - For 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 175 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 keep your costs down when sending money overseas
- 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.
We recommend checking the current guidance from the Australian Securities and Investments Commission (ASIC) via their Moneysmart website, which suggests that shopping around can save consumers significant amounts on large transactions.
Our expert says: How I send money overseas
"Whenever I need to transfer money overseas or convert currency, I use providers like Wise and Revolut as they offer more competitive exchange rates. However, the cheapest option will vary based on how much you're looking to transfer and where you're looking to send it, so make sure to compare a range of options to find the best deal."
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Hi I want to send $4,000 aud to my fiance who is working on a contract in Nigeria. I’m having a lot of trouble doing this and its urgent. Is there any way you can help me please? I can send it but before it gets received, its knocked back
Hi Linda,
Thanks for your question.
You may want to try one of these international money transfer services that advertise they can send money to Nigeria. Please let us know how you go.
Hi,
Am from Melbourne, I need to send US$100 from Australia to company called NANO67 in the UK, if i send through PAYZA how much do they charge? i have already asked this matter from them but they did not reply to me yet, do you trust Payza? how reliable they’re? they said there going to reply to me in 24Hrs when i open my account with Payza
Hi Paul,
Thanks for your question.
Please see a review of Payza fees and charges. We are not in a position to comment on a service’s reliability – our regulatory body, the Australian Securities and Investments Commission is in a much better position to do this.
You may compare other money transfer services you can use to send money overseas and compare their rates, fees, and transfer time. Please ensure to read through the relevant product disclosure statement and terms and conditions to ensure that you got everything covered before you initiate a money transfer.
Cheers,
Shirley
I understand that finder.com.au is a comparison site and assume that quoted conversions are based on actual customer prices. Is this correct as I have setup an account from the list and the quoted exchange does not reflect that on your site?
Hi Currency,
Thanks for your question.
The quoted conversions are generated from figures that are provided to us by the international company services. In some cases there are discrepancies due to the volatile nature of exchange rates and your transfer amount.
Cheers,
Shirley
Would like to send a large amount of money ($500,000) to Poland – If I was to transfer $10,000 every week into a Bank account in Poland – Does the person I am sending the money have to pay tax on each deposit and how much?
Hi Christine,
Thanks for your question.
Please note that finder.com.au is an Australian comparison site and can only provide general advice regarding products issued in Australia. Please have your recipient ask his or her bank if they would need to pay tax on the money sent on each deposit and how much, as this will depend on the tax regulations of Poland.
Cheers,
Shirley
Any idea how much most Canadian banks such as CIBC or Western union would charge if I were to go in and send all of my 44,000 Canadian dollars to a Chinese bank account? I read someone had to pay 174$ plus 27$ transfer fee to get 150$ to the US!!!
Hi Brendon,
Thanks for your question.
Outgoing wire payments for amounts in between $10,000 – $50,000 is $50 per payment.
On their website it states “outgoing wire fees will be charged in Canadian currency. For wires from foreign currency accounts (including U.S. accounts), the equivalent fee will be charged in the same currency as the account using an exchange rate set by CIBC on a date determined by CIBC.”
For more information, please get in touch with CIBC directly.
Cheers,
Shirley