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TransferWise vs Xoom

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

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.

I want to send

to

Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
AUD 1 1 - 2 days AUD 22.50 0.686 USD
3,416
Make online transfers at the mid-market rate with transparent fees in 45+ currencies. 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.

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

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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
TransferWise Xoom
Transfer fee US$6.90 US$0
Exchange rate US$1 = GBP£0.77340 US$1 = GBP£0.7728
Transfer speed 1 day Within minutes
Total British pounds received GBP£768.06 GBP£772.80
Receiver gets GBP£4.74 less GBP£4.74 more
Sending $10,000 to the UK
TransferWise Xoom
Transfer fee US$57.98 US$0
Exchange rate US$1 = GBP£0.77340 US$1 = GBP£0.7728
Transfer speed 1 day 3-4 days
Total British pounds received GBP£7,689.16 GBP£7,728
Receiver gets GBP£38.84 less GBP£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.

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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 methods Receiving options Minimum and maximum transfers Transfer speeds Currencies
TransferWise Bank transfer, credit card, debit card Bank account only Minimum: $1

Maximum: $1,800,000

1 - 2 days 45+ currencies
Xoom Bank transfer, credit card, debit card Bank transfer,

cash pick-up, home delivery

Minimum: $10

Maximum: Varies by country and account verification level

Within minutes - a few days 130+ 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.

I want to send

to

Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
AUD 200 1 day AUD 0.00 0.683 USD
6,835
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 0.683 USD
6,835
Limited offer: $50 Myer gift card for first time users transferring over $5,000 in May 2019. T&Cs apply.
Send 60+ currencies at competitive rates with $0 transfer fees for Finder customers. WorldFirst will beat any eligible quote from another provider.
Go to site Show details
AUD 250 1 - 2 days AUD 0.00 0.683 USD
6,835
$0 transfer fees for Finder customers.
$0 transfer fee on transfers over AU$10,000, $15 flat fee applies otherwise. 24-hour customer service available with a local support team.
Go to site Show details
AUD 200 1 day AUD 0.00 0.683 USD
6,833
Low minimum transfer amount of just AU$200, with no set-up fees or transfer fees. Go to site Show details
AUD 1 1 - 2 days AUD 45.00 0.686 USD
6,831
Make online transfers at the mid-market rate with transparent fees in 45+ currencies. Go to site Show details
AUD 5 1 - 2 days EUR 3.00 0.683 USD
6,827
Special offer: Pay zero fees on your first 5 transfers
Get bank-beating exchange rates and fast transfer times on 15+ popular currencies.
Go to site Show details
AUD 1 Within an hour AUD 3.99 0.683 USD
6,825
An online money transfer service with cash pickup, bank account to bank account and airtime transfers available. Go to site Show details
AUD 3,000 1 day AUD 0.00 0.683 USD
6,834
Global Reach will match any competitor's exchange rates. Conditions apply.
No transfer fee when transferring more than £10,000 or equivalent. Send money in over 130 currencies. No maximum transfer amount.
Go to site Show details
AUD 1 1 day AUD 0.00 0.683 USD
6,828
With global payments provider XE, enjoy fast and secure transfers and a range of foreign currency tools and calculators while benefiting from $0 transfer fees. Go to site Show details
AUD 200 1 - 2 days AUD 50.00 0.687 USD
6,834
Exclusive: Finder customers receive $15 off their first transaction. T&Cs apply.
Quick and simple international money transfers with zero-margin exchange rates. There's a flat 0.5% transfer fee for most transfers. Earn loyalty points on sign up, referral and every transaction.
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.

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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 WorldFirst International Money Transfers
WorldFirst International Money Transfers

Limited offer: $50 Myer gift card for first time users transferring over $5,000 in May 2019. T&Cs apply.
Send 60+ currencies at competitive rates with $0 transfer fees for Finder customers. WorldFirst will beat any eligible quote from another provider.

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

$0 transfer fees for Finder customers.
$0 transfer fee on transfers over AU$10,000, $15 flat fee applies otherwise. 24-hour customer service available with a local support team.

Logo for FlashFX International Money Transfers
FlashFX International Money Transfers

Low minimum transfer amount of just AU$200, with no set-up fees or transfer fees.

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