Whether you are sending GBP to the United States for personal or business reasons, millions of international remittances are sent to the United States every year. With an estimated population of 331 million people and the world’s highest GDP, it is safe to say the United States is a global superpower. As the number of money transfer specialists providing services from United Kingdom to United States continues to rise, it has never been easier to send money to the US safely and securely.
Best Providers for Sending Money to United States from United Kingdom
When considering how to send money United States from United Kingdom there are some key aspects of the transfer that will impact the best provider for your needs.
There are plenty of international money transfer providers for United Kingdom to United States. The fastest provider is WorldRemit. The cheapest transfer provider we found is Wise at 0.5% Above Mid-Market Rate.
If you’re looking for the best combination of price, speed, and reliability we recommend using TorFx when sending GBP – USD.
This means that by using TorFx for online money transfers to United States from United Kingdom, you are likely to save on transfer fees and benefit from fast speeds – so your recipient will get more money and have it delivered in less time.
Alternatively, if you are unable to access TorFx for any reason, our comparison engine has found XE and WorldRemit also to be very good options when sending GBP to USD.
If you are looking to make an international transfer, in some cases you might need to know the SWIFT/BIC code of your recipient in United States. If you’re unsure what it is, check out our SWIFT calculator to figure out the correct SWIFT code in United States.
Understanding the USD/GBP rate
In the United States of America, the US Dollar is used in all 50 states, but what some people don’t know is that it is also used in over 60 other countries outside of the US. These include Central and South American countries like Ecuador, El Salvador and Puerto Rico. Due to its stability and widespread use, the demand for the US Dollar has been strong and steady for the most part. The biggest highs and lows in USD value on record came as a result of major global events such as the Gulf War, the Global Financial Crisis and during Presidential Elections.
Conversely, the GBP/USD rate, which refers to the Pound sterling as the base currency and the US dollar as the quote currency, is the third most traded major currency pair globally.
Figuring out the USD/GBP rate
We do our best to present the best available currency rates and service providers for every feasible foreign exchange scenario. To find the best USD/GBP rate we conducted a case study, using our comparison table, to discover which companies offered the rate closest to the mid-market rate.
As you can see from this case study, the best exchange rates on offer are provided by top international money transfer providers, as opposed to banks. In this instance, the markups incurred for services provided by a specialist money transfer company ranged from 1.7 – 2.4% compared to international bank transfer markups of 7 – 8%.
Will I be taxed for sending money to United States?
Transfers amounting to less than $100,00 USD which are categorised as a “financial gift” will be not taxed, but should be reported to the IRS.
If the amount exceeds $100,000 the recipient will need to declare this amount and complete an IRS Form 3520: gifts from a business or a partnership that exceed $15,601 also must be declared via this form. The IRS Form 3520 is filed annually, used to report transactions received from overseas, including large gifts or bequests, such as stocks, bonds and cash. Depending on the size of the transfer, the recipient in United Kingdom will not always be required to pay taxes on this amount, however, failure to include this information in their annual tax return filing could result in a $10,000 fine. To learn more about taxation laws associated with overseas payments, read our guide: Are Money Transfers Taxed?
Which authorities regulate and monitor money transfers sent to United States?
In 2010, following the global financial crisis, the Dodd-Frank Wall Street Reform and Consumer Protection Act was introduced by the Obama administration, to protect the American economy.
This legislation is enforced by the Consumer Financial Protection Bureau (CFPB) and they are the organisation responsible for monitoring financial markets and enforcing certain rules to protect consumer rights. The CFPB is responsible for reviewing all international money transfers sent over $15.00 USD.
How much do banks in United States charge for receiving international money transfers?
Incoming international payments sent to banks are often accompanied by landing fees. These fees can vary and largely depend on the country the payment is sent from, the currency and the transfer size. Personal and business bank accounts incur different fees for receiving money transfers too. For example, Bank of America fees range from $15 – 45, Wells Fargo fees typically cost between $15 – 30 and CitiGroup transfers incur fees of $10 – 35 on average. Customers can read through our Bank Reviews to find out more about the various charges issued by major US banks.
How much money can be transferred from United Kingdom to United States?
The amount of USD you can receive from United Kingdom will largely depend on the money transfer service you are using. There are providers that specialise in smaller remittance payments, and providers who specialise in larger transfers.
You should also check if there are any government regulations pertaining to the amount of USD that can be received in United States or sent from United Kingdom before making your transfer.
Can I send money with MoneyTransfers.com?
No. MoneyTransfers.com is a comparison website aiming to match you with the best money transfer providers for your needs when transferring money online.
How to find the best exchange rate?
Finding the best exchange rate is crucial to maximising the money received on the other end. Usually, you will receive better exchange rates with money transfer provider compared to a traditional bank. Here’s are a few tips to find the best exchange rate online:
Start looking early: various providers will offer different exchange rates on different days, start looking as early as you can to identify the best provider for your currency pair.
Pay attention to the current exchange rate: staying up to date with the current exchange rate will give you the advantage to buy and sell on time. Currencies fluctuate daily due to supply and demand, so checking it frequently is advised to get the best rate possible. Alternatively, you can sign up with our price alerts to know when your currency reaches the desired price.
Avoid using your bank: banks are trustworthy, reliable and convenient, but they do not provide value for money. They charge high fees and usually have higher costs compared to the money transfer provider. Some money transfer companies will even provide a mid-market rate.
How we compare?
What do we mean by the top provider?
The top provider is the money transfer service that we believe is the most suitable for the country you’re sending money to. In order to keep our service free we factor in the commercial agreements we have with partners into this ranking.
How do we choose providers to display?
We make sure that each table displays the most relevant brands to the country you are sending money to and from. We consider many factors when choosing the providers to display in the table.All of the providers we display are fully regulated to provide money transfer services in the jurisdiction you are searching, relevant regulatory authorities are the FCA, ASIC, Fincen, FINTRAC & AMF. Alongside being regulated the services are manually checked by our team for both quality of service and online trust from such platforms like Trustpilot and Google reviews.We base our rankings primarily on the quality of the service provided, the benefit to the consumer and to keep our service free – the commercial agreements we have.
How do we order our comparisons?
We are affiliated with some of the partners displayed in the tables. However, the order of the providers is based on the quality of the service for the particular country corridor followed by the commercial agreement in place. You don’t pay any extra and the deal you get isn’t affected by our commercial agreement with the money transfer provider. We may receive a commission when you click through to a listing or when you make a transaction.We aim to find the balance between the quality of the service, customer satisfaction and the commercial agreements we have, and continue comparing services in a transparent way.If you have any questions about our listings, please don’t hesitate to email us at contact@moneytransfers.com
What can I use money transfers for?
It might look confusing and unusual to use anything other than a bank to send money for any reason other than a generic transfer, however, there are many more ways to use money transfers.
For instance, you can sign up with a money transfer provider to receive your pension abroad. Many money transfer companies have dedicated teams and resources for that particular reason.
You can save a lot on fees if sending large sums at once. For example, if you’re looking to buy a house abroad you can benefit from the better exchange rate and lower fees by using a money transfer company compared to a traditional bank.
You can use money transfer services for the same reasons you use your bank, but with lower fees, quicker delivery times and better exchange rates. If you are just getting started you can read our selection of guides to help you grasp on the basics.
Can I trust MoneyTransfers.com comparison?
Yes. We’re a team of money transfer experts working tirelessly comparing providers to find you the right provider for your transfer needs. Find out more about us here
Artiom is a marketing graduate from the University of Portsmouth, Artiom’s primary experience is in SEO but he has a broad knowledge of all facets of digital marketing. He optimises the organic experience on MoneyTransfers.com with the content team, manages and creates unique marketing tactics, and generally supports the overall growth of the website.