Send Money Abroad

How to Find the Cheapest Way to Send Money Abroad

The cheapest way to send money internationally depends on three factors: the corridor (where you are sending from and to), the amount you are sending, and how quickly you need the money to arrive. For most people, online money transfer services like Wise (formerly TransferWise), Remitly, or OFX offer the best combination of low fees and competitive exchange rates.

Banks are typically the most expensive option. A typical bank wire transfer charges $25-$50 in fees, plus a 2-4% markup on the exchange rate. On a $1,000 transfer, that could mean paying $65-$90 in total costs. By comparison, Wise typically charges $3-$8 for the same transfer and uses the mid-market exchange rate with no markup.

Understanding Exchange Rate Markups

The exchange rate is where most of the cost of an international transfer is hidden. When a bank or money transfer service quotes you a rate, it is almost always worse than the "mid-market rate" (the real rate you see on Google or USDConverter). The difference between the mid-market rate and the rate you are offered is the markup, and it is essentially a hidden fee.

For example, if the mid-market rate for USD to INR is 84.00, your bank might offer you 81.50. On a $5,000 transfer, that 3% markup costs you approximately $150 in lost value, on top of any flat fees. Always compare the rate you are offered against the mid-market rate on our converter to see the true cost.

Transfer Speed: How Fast Can You Send Money?

Transfer speed varies dramatically by method and corridor. Cash pickup services like Western Union and MoneyGram can deliver money in minutes, but charge higher fees. Online services like Wise typically take 1-2 business days for most corridors, though some routes (like USD to INR) can be same-day. Bank wire transfers are the slowest, often taking 3-5 business days due to the SWIFT network and correspondent banking.

Cryptocurrency transfers are the fastest for tech-savvy users. Stablecoins like USDC or USDT can be sent anywhere in the world in under 10 minutes for a fraction of a cent in fees. The challenge is that both sender and receiver need crypto wallets and the ability to convert to local currency.

Tips for Saving Money on International Transfers

• 1. Always compare rates — Use our rate comparison tool to see what different services charge.
• 2. Avoid banks for small transfers — The flat fees make bank wires uneconomical for amounts under $5,000.
• 3. Send larger amounts less often — Consolidating transfers reduces the number of flat fees you pay.
• 4. Watch the exchange rate — Rates fluctuate daily. Use rate alerts to send when rates are favorable.
• 5. Consider crypto for large transfers — For amounts over $10,000, stablecoin transfers can save hundreds in fees.
• 6. Check for first-transfer promotions — Wise, Remitly, and others often waive fees on your first transfer.

Is It Safe to Send Money Online?

Reputable online money transfer services are regulated by financial authorities in the countries they operate in. In the US, services like Wise and Remitly are registered with FinCEN and hold state money transmission licenses. In the UK, they are authorized by the FCA. In the EU, they hold e-money or payment institution licenses.

Always verify that the service you use is properly licensed. Check their website for regulatory information, read reviews, and start with a small test transfer if you are using a service for the first time.

Frequently Asked Questions