Find & Compare The Best Way To Send Money To Mexico

Sending money to Mexico has been one of the most competitive corridors recently, attracting many providers and bigger investment than other destinations. Hence, you will most assuredly get a reasonable price and service when transferring money with any top provider. A few years back now, the overall cost of sending money has been decreasing globally. We recommend using providers with the cheapest price.

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United States

Pesos to dollar exchange rates

The current exchange rate for the Mexican Peso (MXN) is 19.6372 MXN per American Dollar (USD). The MXN reached a high of 19.8071 MXN per USD, and a low of 18.9376 MXN per USD during the last 90 days. The average exchange rate for the MXN was 19.2373 MXN per USD during the last 90 days.

Trying to wait for the best exchange rate is relatively difficult if not impossible. You shouldn’t follow anybody’s advice relating to this topic, especially if the person is not making millions trading on same information.

FX markup is the difference between a peso-dollar exchange rate that providers get on the market vs. an exchange rate that you get from a provider

FX markup is changed daily by the provider to maximize profit and all provider has a different FX markup. In fact, some providers even apply different FX markups for varying sending-receiving methods.

The best way to maximize this is to compare your favorite provider’s FX markup to its average in the previous months. Hence, the best time to send money is when the FX markup is at or below the average trend.

Key Trends

Due to the mix of nationalities and a close connection with its birth or ancestry home, the world’s largest corridor for sending money has been USA-to-Mexico. Hence, USA outnumbers most countries when it comes to sending money to Mexico.

The remittance volume from USA to Mexico had increased rapidly until 2008, during the US financial crisis when it experienced a fall, but its now gaining momentum to its peak level.

California and Texas have around 35% and 25% respectively of Mexicans-Chicanos living there. Immigrants from Mexico arrive in large numbers to Chicago, Phoenix, and NYC metropolitan areas typically sends more money. Recently, the number of immigrants has been reducing due to showdown in construction industry and increase in deportations by the US government.

Mexicans-Chicanos use two methods for sending money to Mexico from USA, these methods include:

  1. Online channel (a provider’s website or mobile app)
  2. Via a cash agent

Despite the high cost of transferring via cash agent, a great majority of Mexicans still use this transfer method, because:

  • Migrants sending money to Mexico seems satisfied with a current offering
  • Significant portion of senders still don’t have a bank account
  • In relation to other major migrant groups, Mexicans have the lowest level of education and income
  • The “undocumented” migrants who get paid in cash and don’t pay taxes (they are concerned that by placing money into a bank account they could be reported to IRS)
  • Numerous Mexicans, even the legal USA residents work in the field and are paid in cash, for them going to put the money into a bank account is an extra step with a potential tax liability

For people that haven’t tried sending money online through a smart phone or website, try doing so when next you want to send money to Mexico and you will see first hand how easy and time friendly the mobile app is, you would save yourself some cash as well. You could review all of your past transaction any time you want to.

Top providers for sending money to Mexico

We have lots of well-established providers for sending money from USA to Mexico. Sending money from a linked bank account in USA to a linked bank account in Mexico is the least expensive method. You could get this done through provider’s mobile app or website.

Some top providers are:

The best way to send money to Mexico

The best money transmitter varies among each of us because of our varying preferences among cost, convenience, speed, and customer service. No one provider can be outstanding in all factors.

But if you’re still sending money to Mexico with a cash agent, you could save 70-80% by sending money online. You could experience a minor delay for your money to deliver but such huge savings should be worth the wait.

I will be stating the best provider to use based on some factors, which are:

  • The fastest service: MoneyGram, Xoom
  • The cheapest service: TransferWise
  • Quality service: TransferWise
  • Availability of cash pick-up locations: Western Union, MoneyGram
  • Consistency of experience: TransferWise

If you need to send money to another country, you can start by reading about: