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The cheapest ways to transfer money overseas
We break down the best ways to transfer money for cheap from Australia.
Whether you're sending money home to family, friends or your own bank account overseas, you want to make sure you're not paying more than you need to.
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 actually give you the mid-market rate without any margin, 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 4.13% 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.
Compare money transfer services to send money overseas
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How we picked theseFinder 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
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 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 - 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 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 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.
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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after using torfx and paying all transaction fees
in UK, my bank cibc charged me 15 percent on 200.00 dollars, that was sent in canadian dollars.
why.
Hi Alan,
Thanks for your question. finder.com.au is a comparison service, we allow you to compare factual information on a range of financial products.
For any further information relating to specific account enquiries and issues, please speak to your TorFX consultant directly.
All the best,
Shirley