Get the Finder app 🥳

Connect your accounts & save

TransferWise vs Xoom

Which one of these low-cost money transfer services should you choose when sending payments overseas?

Updated

Fact checked

Both TransferWise and Xoom offer lower fees than banks, but which one should you use to send money overseas? We compare the fees, exchange rates and speed to help you find the best deal.

The following fees and rates are accurate as of 19 February 2019.

Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
AUD 1 1 - 2 days AUD 22.50 0.696 USD
3,463
Make online transfers at the mid-market rate with transparent fees in 45+ currencies. Show details

Compare up to 4 providers

The "Rate" and "Amount Received" displayed are indicative rates that have been supplied by each brand or gathered by Finder.

Exchange rates are volatile and change often. As a result, the exchange rate listed on Finder may vary to the actual exchange rate quoted for the brand. Please confirm the actual exchange rate and mention "Finder" before you commit to a brand.

Xoom is not available in Australia

Unfortunately, you won't be able to sign up for an account in Australia unless you have a bank account in either the US or Canada.

Which has lower fees?

TransferWise

TransferWise charges a percentage fee as well as a small flat fee. For instance, if you sent $1,000 from the United States to the United Kingdom, you would pay US$6.90.

Xoom

Xoom's fees depend on how you make the payment. Sending money from your bank account won't cost you anything. However, paying by credit or debit card will. For example, for a $1,000 transfer from the US to the UK:

  • Fees when paying by bank account: $0
  • Fees when paying by card: US$30.49

Trophy icon
Winner: Tie

It's tricky to pinpoint a clear winner here, because it depends on how you make the initial payment. Xoom's fee is $0 if you use your bank account to make the payment, but if you pay by card, it can add up.

TransferWise has overall low fees, and the company has announced that it's changing its fee system on March 8, making most fees even lower.

Let's crunch the numbers: Sending $1,000 and $10,000 from the US to the UK

Let's see how TranferWise and Xoom compare when sending two different amounts from the US to the UK.

Sending $1,000 to the UK
TransferWiseXoom
Transfer feeUS$6.90US$0
Exchange rateUS$1 = GBP£0.77340US$1 = GBP£0.7728
Transfer speed1 dayWithin minutes
Total British pounds receivedGBP£768.06GBP£772.80
Receiver getsGBP£4.74 lessGBP£4.74 more
Sending $10,000 to the UK
TransferWiseXoom
Transfer feeUS$57.98US$0
Exchange rateUS$1 = GBP£0.77340US$1 = GBP£0.7728
Transfer speed1 day3-4 days
Total British pounds receivedGBP£7,689.16GBP£7,728
Receiver getsGBP£38.84 lessGBP£38.84 more

Which offers better exchange rates?

TransferWise

TransferWise is one of the few money transfer providers that offers customers the mid-market rate. So if, for example, you're sending money to New Zealand and the mid-market rate works out at 1 AUD = 1.035 NZD, that's the rate TransferWise will give you.

Xoom

Xoom makes a profit by adding a margin on top of the mid-market rate. For example, Xoom's exchange rate for New Zealand is 1 USD = 1.4687 NZD, while the mid-market rate is 1 USD = 1.46003 NZD.

Trophy icon
Winner: TransferWise

By offering the mid-market rate, TransferWise is a clear winner here.

Which is faster?

TransferWise

Paying with a credit or debit card means the money could be available to your recipient within minutes. However, some currencies and payment methods will take longer, and could take up to four days.

TransferWise says 90% of transfers from the UK to Europe happen within 1 business day. On the other hand, if you send $1,000 to Bangladesh, it will take up to 4 business days.

Xoom

Xoom says the money will be available to your recipient within minutes. It can take longer depending on factors such as the country you're sending it to, how you make the initial payment and how the money will be received.

If you send more than US$10,000, it will take another 2-3 business days on top of the normal processing time, while Xoom settles the funds with your bank.

Trophy icon
Winner: Tie

Both TransferWise and Xoom offer payments within minutes, but times vary depending on the method of payment, the currency and country. In this category, it's difficult to pick a clear winner.

General features

Payment methodsReceiving optionsMinimum and maximum transfersTransfer speedsCurrencies
TransferWiseBank transfer, credit card, debit cardBank account onlyMinimum: $1

Maximum: $1,800,000

1 - 2 days45+ currencies
XoomBank transfer, credit card, debit cardBank transfer,

cash pick-up, home delivery

Minimum: $10

Maximum: Varies by country and account verification level

Within minutes - a few days130+ currencies

TransferWise

Head to TransferWise's website and choose the currency and amount you want to send. You transfer your local currency to TransferWise, and they transfer your recipient's local currency out of their bank account in that country. At every stage of the transfer, you will be updated via email. You also have the option of using an app to track your transfer, or checking it through the TransferWise website.

Read review: TransferWise

Xoom

After setting up an online account or downloading the Xoom app, choose the amount you wish to send and the currency, and where the recipient will access the money. Xoom offers a money-back guarantee if your transfer isn't received. There is also 24-hour support, and you can track your transfers via text, email or online.

However, unfortunately for Australian customers, you'll only be able to use Xoom's money transfer service if you have a US or Canadian bank account.

Read review: Xoom

Bottom line

It's a close call between these two international money transfer providers, and both have their advantages. TransferWise offers the mid-market rate with no added margin on top, while Xoom offers no fee if you pay by direct bank transfer. Ultimately what you choose depends on your payment method and the currency you're sending, so make sure to compare a range of services before you make a choice.

Looking for more options?

Use our calculator below to compare fees, exchange rates and transfer speeds of leading international money transfer providers. Just enter the details in the calculator to see what fees and exchange rates you would get.

Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
AUD 2,000 1 day AUD 0.00 0.693 USD
6,930
TorFX guarantees to match any competitor's exchange rate. Conditions apply.
Send money overseas in 30+ currencies with competitive rates for transfer amounts over $2,000.
Go to site Show details
AUD 2,000 1 day AUD 0.00 0.693 USD
6,930
SendFX guarantees to match any competitor's exchange rate. T&Cs apply.
Fee-free transfers in 30+ currencies to over 200 countries.
Go to site Show details
AUD 250 1 - 2 days AUD 0.00 0.693 USD
6,930
$0 transfer fees for Finder customers.
No-maximum limit transfers with competitive exchange rates for 100+ currencies. No transfer fee over AUD$10,000.
Go to site Show details
AUD 2,000 1 day AUD 0.00 0.693 USD
6,930
Better exchange rates for Finder customers.
Send 60+ currencies at competitive rates and no fees. If you find a better eligible quote, WorldFirst will beat it.
Go to site Show details
GBP 3,000 1 day AUD 0.00 0.693 USD
6,930
Global Reach will match any competitor's exchange rates. Conditions apply.
Get no fees for both business and personal transfers when you send your money overseas with Global Reach.
Go to site Show details
AUD 1 1 day AUD 52.00 0.696 USD
6,921
Pay no fees on your first two transfers, up to $3,000.
SingX offers the real exchange rate every time you make a transfer and can help you send money across the world.
Go to site Show details
AUD 0 Same day AUD 2.99 0.688 USD
6,879
Special offers like free transfers and better exchange rates available for new customers.
Quick, affordable transfers around the world with both express and economy options.
Go to site Show details
AUD 1 Same day AUD 0.00 0.692 USD
6,923
Get fast transfers with no fees and a range of foreign currency tools. Go to site Show details
AUD 5 1 - 2 days EUR 3.00 0.689 USD
6,886
Special offer: Zero fees on your first 10 transfers.
Get bank-beating exchange rates and fast transfer times on 15+ popular currencies.
Go to site Show details
AUD 1 Same day AUD 3.99 0.687 USD
6,871
Use promo code 3FREE to send your first 3 transfers with no fee. Conditions apply.
An online money transfer service with cash pick-up, bank account to bank account and airtime transfers available.
Go to site Show details

Compare up to 4 providers


The "Rate" and "Amount Received" displayed are indicative rates that have been supplied by each brand or gathered by Finder.

Exchange rates are volatile and change often. As a result, the exchange rate listed on Finder may vary to the actual exchange rate quoted for the brand. Please confirm the actual exchange rate and mention "Finder" before you commit to a brand.

Related Posts

International Money Transfer Offers

Important Information*
Logo for TorFX International Money Transfers
TorFX International Money Transfers

TorFX guarantees to match any competitor's exchange rate. Conditions apply.
Send money overseas in 30+ currencies with competitive rates for transfer amounts over $2,000.

Logo for SendFX International Money Transfers
SendFX International Money Transfers

SendFX guarantees to match any competitor's exchange rate. T&Cs apply.
Fee-free transfers in 30+ currencies to over 200 countries.

Logo for OFX (Ozforex) International Money Transfers
OFX (Ozforex) International Money Transfers

$0 transfer fees for Finder customers.
No-maximum limit transfers with competitive exchange rates for 100+ currencies. No transfer fee over AUD$10,000.

Logo for WorldFirst International Money Transfers
WorldFirst International Money Transfers

Better exchange rates for Finder customers.
Send 60+ currencies at competitive rates and no fees. If you find a better eligible quote, WorldFirst will beat it.

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Ask a question
Go to site