International Money Transfer Options
How to transfer money abroad and save yourself thousands in the process
A common challenge for expats and travellers is to transfer money to or from Australia, UK, South Africa, NZ, the USA and Canada between banks. Bewildering arrays of choices exist, including using expensive international bank transfer services.
Finding a secure and inexpensive money transfer service is super easy and over time can easily save you thousands. There are several options, and the best one for you depends on your specific situation. Below, you’ll find comparisons, reviews, and promo codes to help you choose.
In general, there are two situations in which travellers, expats and working holidaymakers fall into:
Situations - What's Best for You?
Situation 1
The primary aim is to work
You have bank accounts in both countries (or your recipient has one)
You are sending reasonably large sums of money - greater than £1,000 GBP / $2,000 USD
What to do in this situation?
There are two main options for Situation 1:
Option A:
Use a dedicated Money Transfer Company with zero or low fees and a competitive exchange rate (typically 0.5%-2% difference to the mid-market rate)
Option B:
Use your bank, but be prepared to pay fees up to $100/£50 and face less favourable exchange rates (typically 2%-4% difference to the mid-market rate).
If Situation 1 best describes your circumstances (you plan to settle in one location for a while and you have a local bank account), you can save a lot of money, time and hassle by transferring money with a service that facilitates international bank-to-bank transfers.
These online money transfer companies are highly cost-competitive and more user-friendly than traditional banks.
Situation 2
No bank account in the destination country
Just passing through the country
You are sending smaller sums - less than £1,000/$2,000
What to do in this situation?
Your best option is:
Use a Remittance Company
If Situation 2 best describes your situation, you may wish to utilise an established, global money transfer company such as MoneyGram, Remitly, WorldRemit or Western Union.
Sending money through these companies is nearly always in-person, cash transactions. Outlets exist nearly everywhere in the world.
Money Transfer Company
Money transfer companies allow you to transfer money quicker, easier and at a much lower cost than using your bank.
Fees are low.
Exchange rates are competitive often lower than half a percent.
Bank-to-Bank Transfer
You can transfer money from your bank to another account overseas whether it be your bank account or someone else’s.
Your bank will charge a fee for this service ranging from $35/£26 to $50/£38.
The receiving bank will also charge you a fee for receiving funds internationally the cost can go as high as $40/£30 per transaction – usually, this just means less of your money arrives as the amount is deducted automatically.
However, the main cost is usually hidden in the exchange rate offered. For amounts over $1,000/£2,000, exchange rates are usually significant*.
Remittance Companies or PayPal
If you don’t have a local bank account or are just passing through a country, services like MoneyGram or Western Union allow you to transfer cash for in-person pickup.
PayPal may also be a good option especially for smaller amounts – less than a few hundred dollars (recipient and sender both need PayPal accounts).
*Banks earn income from international transfers through fees and the exchange rate offered.
In our tests, exchange rates offered by banks are typically 2-4% more than those offered by a money transfer company. For instance, if you transfer $1000/£500 from the UK to Australia, Canada, Europe, or the USA, you’ll often receive about $75/£50 less in your account due to bank fees and poor exchange rates.
Situation 1:
Option A: Money Transfer Companies
In recent years, online money transfer companies have emerged that are inexpensive and user-friendly compared with transferring money through your banks.
To use one of these services, you’ll need to create an account with them and be able to access your sending bank account via online or phone mobile banking.
The key is to choose a service based on the amounts you intend to send.
Of course, it is also important to choose a reputable company as your money will be transferred to them before it gets to you.
The companies we compare here are all secure and trustworthy. They are registered with the FCA in the UK, ASIC in Australia, FCAC in Canada, FinCen in the USA, and other regulatory bodies where they operate.
How it Works
- Register online with the transfer service of your choice.
- Input transaction details, including the amount you want to transfer.
- Get approved by the the transfer company – You may need to upload an ID and take a selfie for your first transaction
- Transfer funds through your bank using the account details from your transfer company.
- Get your money! Your transfer service will deposit your funds in your destination account.
Leading Money Transfer Companies
Below are three of the largest international money transfer services that we use ourselves. They also have offices in the UK and overseas.
To activate their promo codes, please use the links on this page. We also appreciate it if you sign up through these links. Please note that using our link does not cost you any additional fees for using their service.
| Wise (formerly TransferWise) | OFX | TorFX | |
|---|---|---|---|
| Fee Per Transfer | Depends on the sending and receiving method. You will pay a fixed fee and a variable of 0.30 – 0.60% | AUD $15, GBP £7, CAD $15, USD $5, NZD $12 for transfers below AUD $10,000 / GBP £3,000 / USD $5,000 | No fees: transfers over £3,000/$10,000 |
| Min. Transfer Amount | Depends on the recipient country | $250 AUD (or equivalent) | £100 |
| Exchange Rates Cost ** | Mid-market rate | 0.75% – 1.5% (rate gets better as amount increases) | 0.5% – 2% (rate gets better as amount increases) |
| Countries Served (includes) | Over 70 countries including Australia, UK, USA, South Africa, New Zealand, Canada, Poland, Europe, Japan. | Over 170 countries including the UK, Australia, New Zealand, Singapore, South Africa, Canada, Hong Kong, Europe, and the USA | US, Europe, Australia, Singapore, and South Africa |
| Support | Email and chat support 24/7 | Phone support 24/7 | Phone support 24/7 |
| Option to pay by credit card? | Yes, payments can be made by credit cards and debit cards in AUS, NZ, or SA but not to credit cards issued by UK banks. (This attracts extra fees) | Yes, payments can be made to credit cards in NZ and AUS only | No, only bank-to-bank transfer |
| App for Smartphones? | Yes | Yes | Yes |
| Option to lock in an exchange rate? | Yes | Yes | Yes |
| Free Rate Alerts to phone or email? | Yes via email | Yes via email | Yes |
| Bottom Line | Wise is our preferred service for relatively smaller amounts – below £5,000/$7,000 Why? 1. Excellent rates for smaller amounts. 2. You can see the exchange rate you will get without logging in so you can compare with your bank easily. You can find a full review here. | OFX is our preferred service for amounts greater than £5,000/ USD 7,000/ AUD 10,000 Why? 1. Customer service is available by phone or online 24/7 with offices in Australia, Canada, NZ, USA, UK, and Hong Kong. 2. Ability for travelers to pay off credit cards in Australia or New Zealand. 3. The exchange rate gets better when you send higher transfers. Click here to get your transfer fees removed. Clicking the links on this page for OFX activates a promotional code for your free transfers. You might also like our review of OFX. | TorFX is our top choice for money transfers over £5,000, $7,000 USD, or $10,000 AUD. Why? 1. Their customer service is excellent and available 24/7. This is backed up by their strong Trustpilot rating. Plus, the exchange rates get better the more you transfer. 2. Higher transfer amounts mean better exchange rates. However, you can only make transactions over the phone. You’ll need to call their customer service to get a quote for the exchange rates and intermediary fees. Read the full review of TorFX on our partner site. |
Examples
- Transferring funds to the UK from overseas
- You need to transfer money from Australia (ANZ, Westpac), Canada (CIBC, BMO), Europe (PBN BNP Paribas, Deutsche Bank), and the US (Bank of America, US Bank) to the UK.
- After locking in a good exchange rate, just move the money online from your account to the money transfer company’s account under your name. The amount will then be sent automatically to your chosen account in the UK (Barclays, Lloyds, HSBC).
- Transferring funds from the UK to overseas
- You need to transfer money from the UK to your bank back home.
- After locking in a favourable exchange rate you would simply move money online from your account in the UK (Lloyds, Barclays, HSBC, Bank of Scotland) to the money transfer company account in your name.
This amount is then automatically paid to your nominated account in your home country.
have personally used international money transfer services for almost a decade now and love the savings and service you get over a bank. For me the best part though is the ability to lock in a rate in real time - this in itself is fantastic and I regularly find myself saving a few hundred dollars with just a few checks. I also found that even though I tend to like doing most everything online, you can pick up the phone anytime (24 hrs) and get someone who can help you if you have any questions at all - I love the piece of mind this brings.
Option B: Transfer Money Using Your Bank
Most banks provide international transfer services. Since you can usually transfer money online through your existing bank account, this method is convenient, though often more expensive. Transaction fees can generally range between £ 9.5 GBP (Lloyds) for standard services and up to £ 25 GBP (Barclays) for priority services.
For example, transferring from an Australian bank usually costs about AUD $10 – 30, while transfers from Canada can range from 30 – 80 CAD or the USA can range from $20 to $40.
Furthermore, the receiving bank may charge a fee as well which comes off the original amount you send.
International money transfer companies offer more favourable exchange rates and low or sometimes no fees.
However, if you’re looking to make a one-off transfer and avoid the hassle of setting up any new accounts, and don’t mind paying these fees, this may be the option for you.
HSBC, Barclays, Lloyds and Royal Bank of Scotland all offer overseas funds transfer services.
How it Works
- You will need to be able to send money online with your current bank.
- You will usually need to know the address of the receiving bank, the account details of the receiving account, the account name and often the receiving bank’s SWIFT code (an international bank identification system – ask your current bank for their SWIFT code).
- It’s a good idea to check with your bank about exchange rates.
- You can use this method to send an international money order online to your own home bank account or to a third party.
Banks vs. Transfer Companies
| Transfer Companies | Banks | |
|---|---|---|
| Fast Money Transfer |
| |
| Low or Free Money Transfer |  | |
| Best International Money Transfer Rates | | |
| Lock in Exchange Rates Online | | |
| Get Money to Your Account Fastest | | |
| Security | | |
Both Banks and Money Transfer Companies have to meet the needs set out by financial regulators in the countries they operate. This includes security.
Option 3: Wire Cash through Global Companies
If you’re visiting a country for a short time and simply need some cash, you may wish to utilize an established, global money transfer company such as Travelex, MoneyGram or Western Union. Sending money through these companies almost always involves can give you an option to have in-person, cash transactions. Outlets exist nearly everywhere in the world.
This is great if you need small amounts of cash on short trips. You’ll be able to access these companies from nearly anywhere, you won’t need a bank account or internet access to receive cash, and your money will arrive fairly quickly. You can send money to yourself from your own account this way and you must pick up the cash in person.
In the UK, Travelex MoneyGram will also transfer cash to a bank account, and can also organise an in-person pick-up in the UK, for smaller transactions this is often a great way to go.
Pros
- No location is too remote
- No internet access is required,
- No local bank account is required, send and receive cash.
- Send a money order online to third parties — or to yourself if you’ll be there to pick it up.
- Sending your international money order online occurs quickly
- Credit cards are an acceptable mode of payment but incur additional fees
Cons
- Money transferred in cash making large sums unmanageable,
- In-person pick-up is required — you must go to the actual Western Union representative and fill out a form.
- Your recipient must pick it up in person.
- A quick-fix solution — not a long-term solution.
- You can’t send a money order online to yourself — unless you’ll be back at home immediately to pick it up.
How much does it cost?
The cost of transferring money through MoneyGram or Western Union depends on your payment method, receiving method, and currencies involved.
Therefore the amount ending up with your recipient will depend on the exchange rate and the transaction fee (percentage) that Western Union charges.
For example, if you send £500 to Australia, your recipient will receive between AUD 935 and 965, not including any in-branch fees. To get more detailed cost information, visit your nearest Western Union or MoneyGram branch, or check their official website where you can use the send money calculator.
Best For
Receiving relatively small sums of emergency cash from your friends/ family back home.
Organisations such as Western Union and Travelex MoneyGram seem to be a better option for people traveling in remote locations and who are not settled there (no bank account or address).
Their services are also suitable for travellers overseas who need quick cash sent from home by family or friends. A money order — UK to Australia for example is easy to arrange.
Worst For
The amount of money that actually ends up in your pocket. Consider both the exchange rate and fees to calculate and compare companies.
Table of Contents
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