Millions of people work overseas to support their families back home, and many companies sell their products or services to consumers in other countries. To match the money transfer needs of these people and businesses, a wide variety of money transfer companies have sprung up in recent years – offering bank-beating exchange rate margins and fees when sending money abroad. In our reviews we’ll take you through the best companies around and what to look for in a money transfer provider.
An international money transfer involves sending money to another person or business abroad, either through a bank or a specialised money transfer company. Depending on the method used to transfer funds, your beneficiary can receive money in a variety of ways, from a direct deposit into their bank account to a cash delivery right to their door. Most international money transfers are enabled through the SWIFT network. However, newer technology and peer-to-peer networks are being increasingly used to bring down the costs and transfer times.
When it comes to making an international money transfer, you have a wide choice of service providers. The growing number of online money transfer companies can save you money and time over traditional banks, and if you take the time to compare your options you can even find services dedicated to specific types of transfers or transfer corridors.
The amount of different options open to people nowadays means that it can feel overwhelming trying to tell the difference between the different options available. To help you in your hunt for the perfect money transfer company, here is a quick summary of what you should look for:
When someone has to make an international bank transfer, the first option they will consider is their bank. It is the most obvious choice because you already have an account and all you need to do is visit the branch or login your online account and make a transfer. However, be careful with this as transfers using banks are typically the most expensive way of transferring money abroad. You’ll often be charged high fees, and an exchange rate margin of up to 5% on top.
You will usually be able to make the same transfer at a much lower cost by choosing the right money transfer company – with providers around that charge zero fees and exchange rate margins of just 1-2%. On top of this, banks may not be the quickest way to make international money transfers, with online money transfer companies typically being able to process transactions faster and offer a wider variety of delivery options.
Transferring money with your bank can be tempting because of how well known and trusted the large banks’ brands are, but these companies have leveraged this trusted position to charge large fees on international transfers. Finding an online money transfer provider is almost always your best option for international transfers.
The first step to making an international money transfer is to select a money transfer provider. If you want to compare your options instantly, you can use our comparison tool to display the best options for the transfer you’re planning to make. After you’ve found a provider, simply follow the following 6 steps:
This depends on the service you’re using to transfer your money, but from a user perspective international money transfers work similarly to domestic transfers you would make with an online bank account. You’ll need to be registered with a service to facilitate the transfer (e.g. an online provider or a bank), and agree to whatever applicable fees and enter all relevant payment information before authorising the transfer. Depending on the delivery and payment method you select, this can take anywhere from seconds to between 3 and 5 days.
Behind the scenes, typically most international money transfers are enabled by the SWIFT network. The Society for Worldwide Interbank Financial Telecommunication (SWIFT) payment system enables banks and money transfer providers to send and receive information pertaining to financial transactions securely, and in a standardised way. It allows money to be transferred from one bank to another anywhere in the world, in different currencies, quickly and efficiently. Because of the communication enabled by the SWIFT network, it is not necessary physically to send money around the world and transfers can be made faster by crediting people’s accounts.
Some money transfer companies rely on P2P networks to send money overseas, which means the company has a pool of money in different countries which it can use to pay out faster. When you’ve credited money to the company, they can verify that on their system and quickly transfer funds to your recipient out of the pool in their country. P2P transfer providers are generally quicker, but are best suited for only small transfers. This is because for larger amounts it may be difficult to find matching transactions at the other end.
There is no one-size-fits-all answer to this question as it is heavily dependent on a variety of factors, including the provider you use, the currencies you’re transacting with, and the size of your transfer. There are various types of fees that you will have to consider to work out the cost of your international money transfer, which include:
Yes, you can send money to any country in the world, but only if you select a money transfer company that serves your chosen transfer corridor. There are money transfer companies that have a network across more than 200 countries, so you can easily transfer money anywhere as long as you shop around.
Transferring money from one country to another may take a few seconds to a few days depending on the payment method you choose, currency, the countries involved, and the amount being sent. You may be able to make instant or same day money transfers to most destinations, but again this will depend on your provider and faster transfers often attract extra fees or larger exchange rate margins.
When selecting a money transfer provider to send your money abroad, you’ll want to bear in mind all the information we have given on this page – with particular close attention paid to the payment/delivery options, fees charged, and exchange rate margin offered. These three factors will have the largest impact on the speed and cost of your transfer, and also help you see if the provider offers the specific service you’re looking for (e.g. cash pickup).
To help you unpack all of this, we have written in-depth reviews of all the most notable money transfer providers, created a list of top 10 money transfer companies and also created a free-to-use comparison tool which will show your options instantly if you enter the details of the transfer you’re looking to make.
With international money transfers, you can send any amount of money anywhere in the world – as long as you select the right provider. When using these services you may have to pay a fixed transfer fee as well as a margin on the exchange rate. These fees and rates vary between providers so it’s important to choose a company that is transparent about the fees charged – and also to check your provider supports the payment and withdrawal methods you’re looking to use.
It is also important to choose a company that is regulated in the countries in which they operate, and that the company has effective security systems in place to ensure that your money is secure and reaches the destination safely. Finding a company with a good reputation for customer service can make finding out this information easy to acquire – and it is also all covered in our in-depth reviews.
If you have a transfer you’re looking to make and want to see your best options right away, then just enter the details into our comparison tool and we’ll show you the companies that can best serve your needs.