When looking to send money abroad, there are a wide range of options available. Banks have historically dominated the money transfer market, but in recent years there has been a flurry of new online money transfer providers keen to undercut the competition. These services often offer better exchange rates, lower fees, and shorter transfer delivery times, so it’s a good idea to shop around for the cheapest way to send money abroad.
Updated:
25/10/2022
Read time:
17 minutes
If you’ve ever transferred money internationally before, you’ll know the frustration at having to navigate expensive fees and unfair exchange rates just to send your own money to someone else – this can be apparent even when looking for the cheapest way to send money through a mobile app or PayPal account.
In this guide, we’ll cover your cheapest options when sending money abroad, different ways to send money and why comparing providers should be the first thing on your to-do list, and our top recommendations for the cheapest international money transfer from particular countries.
What is the cheapest way to send money internationally?
The cheapest way to send money internationally is almost always by using a money transfer provider. These are companies that specialise in helping users send their money abroad in other currencies.
However there are a range of money transfer providers to choose from, each offering different benefits and drawbacks; and their overall cost will depend on things like:
It’s always a good idea to compare money transfer providers before sending money abroad, as you’ll be able to see which provider offers the best value for your money.
Why are money transfer providers the cheapest way to send money abroad?
Money transfer providers are specialists in sending money abroad, which means their focus is on providing the best service in the industry, compared to institutions like banks who operate on various fronts. The majority of them operate digitally, giving them lower overheads than brick-and-mortar banks and postal services.
They also often rely on P2P money pools in the countries they operate, which enable peer-to-peer selling and buying of different currencies. It’s an extremely inexpensive way of sending money abroad, which enables money transfer providers to offer lower fees than banks.
Save Money with Money Transfer Providers
P2P transfer services and lower overheads mean money transfer providers can offer international transfer at far lower rates than traditional banks, so it’s always worth comparing providers to see how much you could save before initiating your transfer!
How do I send money internationally with a money transfer provider?
To get the best and cheapest deal when sending money internationally with a money transfer provider, you should always compare your options first. Using our comparison table you’ll be able to compare providers by the fees they charge, the speed of the transfer, and any features or deals they offer.
Once you find the best deal, register with the chosen provider with a few of your details, and when you’ve signed up you’ll be ready to start sending money abroad.
How can I get the cheapest deal when sending money abroad?
Here are some of our best tips for getting the cheapest deal when sending money internationally:
Avoid using credit and debit cards: You may have to pay an extra fee to process credit and debit card payments
Avoid big banks: Banks almost always charge higher fees than money transfer providers
Send larger, more infrequent amounts: To avoid paying fees so often, try to make larger money transfers more infrequently
Open a bank account that doesn’t charge additional fees: If you want to send money via bank transfers and you know it’s going to be a regular occurrence, look for a bank that charges minimal or no fees for international transfers
Compare your options: The best and easiest way to find the cheapest international money transfer is by comparing your options with moneytransfer.com
What is the cheapest provider to send money internationally?
One off amounts
For one-off transfers, you’ll be better off using a money transfer provider as these are dedicated to quick and cheap international money transfers.
Formerly known as TransferWise, Wise charge fixed fees and commissions for the various money transfer corridors they facilitate, and regularly offer the cheapest deals for international money transfers.
Regular transfers
If you’re making regular transfers abroad to a single place, you may want to think about opening a bank account in this location. This would ideally be with a bank that offers services in both the origin and destination of the transfer, as these are likely to allow international money transfers without any fees.
Instant transfers
For instant transfers where the recipient needs the cash immediately, for example during an emergency, you are likely to have to pay more. While cost might not be the number one priority for these transfers, it’s still important to look for the best deal to make sure you get value for your money.
TorFX and XE both offer transfers in hours, with amongst the lowest international transfer fees and exchange rate markups. If you and the recipient have PayPal accounts this can facilitate a transfer in minutes, but this typically costs a little more.
Large amounts
Larger transfers can be quite expensive when you take into account the fees and charges involved, so it may pay off to look for a money transfer provider that specializes in bigger amounts. Even the smallest rate change can be significant for these sums, so it’s always good to compare your options to make sure you find the best deal.
OFX regularly rate amongst our highest providers and they specialize in high-value international money transfers, with an upper limit of two billion USD. We recommend using OFX for transfer of over 50,000 USD.
What should I keep in mind when sending money abroad?
When sending money abroad, it’s important to bare the following in mind to ensure you get the cheapest deal for your transfer:
Transfer limits: If you need to send a large amount of money, be sure to check transfer limits so you know you’ll be able to send the total amount you need to while paying the least in fees and exchange rate markups
Guaranteed rates: Some providers offer guaranteed rates to protect the amount of money you are sending from changes in international currency markets – which ensures your transfer cost stays fixed
The Hidden Fees of Money Transfers
A reliable money transfer provider will always provide you with an upfront view of the exact fees you should expect to pay for your transfer – if it doesn’t, that’s a big red flag!
Comparing international money transfers
The easiest way to find the cheapest deal on your international money transfer is by comparing providers with moneytransfers.com. You’ll be able to see which providers offer the lowest fees, the quickest transfers and any deals or promotions that could knock the price down even further.
Just tell us how much you want to send, and the origin and destination of the transfer, and we’ll show you the top providers who can set your transfer up. Once you’ve picked the one you want, you can sign up in minutes and start sending money.
What is a free money transfer? There are a lot of external factors that dictate whether a money transfer will be “free” and one of these factors is destination. Domestic transfers, for example, are typically free regardless of the financial provider, because the money is simply being sent between two accounts in the same country, […]
Europe is home to 44 countries, but not all of them use the euro. This makes sending money to the continent less straightforward than you may have originally anticipated. Those looking for cheaper alternatives when sending an international money transfer, must always consider the destination country, currency and costs involved. To reduce the cost of sending money to Europe, we have put together this guide which outlines the best ways to save money on European remittances.
Bank charges can drastically affect the value of your international money transfer, so it pays to be in the know. In this guide we will outline how to steer clear of the types of fees which commonly catch customers out.
The wide variety of global service providers offering “free money transfers” can appeal to those searching for the best deal. However, nothing in life is free, and in a bid to reduce any disappointing outcomes, we outline what to expect when dealing with free money transfers.
Finding the right money transfer service is important. We compare the top 10 money transfer providers.
Your Questions Answered
Is PayPal the cheapest way to transfer money?
Although PayPal is often a convenient and affordable way to transfer money domestically, it is rarely the cheapest way to transfer money abroad.
If you want to find the cheapest way to transfer money to UK, check out our guide to sending money to the UK.
This is because PayPal charges a relatively large currency conversion fee on top of the mid-market rate, as well as fixed fees on top of that compared to other peer-to-peer transfer providers.
Many money transfer providers provide international money transfers at a fraction of the cost compared with traditional banks.
For example, TransferWise will transfer your money at the mid-market rate with a small, transparent fixed fee for any transfer you make. Other providers, such as XE, will charge no fee for a bank-to-bank transfer, although they will add a markup on the mid-market exchange rate.
Alternatively, a handful of banks do allow you to transfer money overseas with no fees if you are sending the money to a linked overseas bank. If both you and the person you are sending money to have an open account with the same banking group, this is typically the best way to move money between your accounts for free.
Is it cheap to send money instantly?
Often, you will need to choose whether cost or speed is your big priority for money transfers abroad, as the faster a transfer can be processed, the higher the cost involved. While this will differ depending on the provider, you will usually get much lower rates for a transfer that will take several working days compared to an instant transfer.
What is the cheapest way to send cash abroad?
The cheapest way to send cash abroad is almost always by using a money transfer provider.
International providers such as MoneyGram and Western Union also provide this service.
What is the cheapest way to transfer money to Europe?
The cheapest way to transfer money to Europe from the UK is to find a money transfer provider that offers low fees and favourable exchange rates when transferring GBP to EUR.
Our top recommended money transfer providers for this include OFX, XE, and TransferWise.
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
Is PayPal the cheapest way to send money?
There is no one “cheapest” way to send money, as it depends on several factors such as the amount being sent, the currencies involved, and any fees or exchange rates. However, PayPal is generally more expensive than a standard money transfer provider due to the set fees and exchange rates involved.
What are the three key things to consider from a money transfer provider?
1) Exchange rate: This will determine how much will the recipient actually receive for the amount you send.
2) Transfer fees: Consider how much will it cost for you to make the transfer and therefore the overall impact of the transfer itself.
3) Delivery speed: How quickly will the recipient receive the funds is something to consider.
Within all of these we should consider what impact this has on the cost of your money transfer approach.
Is it cheaper to send money through your bank or a money transfer provider?
When sending money, banks often have higher fees and less competitive exchange rates, while money transfer providers will generally have lower fees and more competitive rates – as well as a number of different pick up options.
Are international money transfers through a bank more expensive than money transfer providers?
It depends on the specific bank and provider you are comparing. Generally speaking, banks tend to have higher transfer fees and less competitive exchange rates compared to specialized money transfer providers. However, it is important to compare your options and consider factors such as transfer fees, exchange rates, and speed of delivery before deciding on a method of international money transfer.
What is the cheapest way to send money to Europe from the USA?
One of the cheapest options for sending money to Europe is to use a bank transfer service, such as TransferWise or OFX. These services typically have lower fees and better exchange rates than traditional wire transfers through a bank. It is also important to consider the receiving country’s banking system and potential additional fees. Find out more on sending money from the USA to Europe.
What is the cheapest way to send money from the USA to the UK?
One option is to transfer the funds through a peer-to-peer money transfer service like Wise, which typically charges lower fees and offers better exchange rates compared to traditional banks or money transfer companies. Another option is to use a prepaid debit card, such as the Monzo, which allows you to load funds in US dollars and recently launched in t
What is the cheapest way to send money from USA to India?
There are a few options to consider when sending money from the USA to India, including online transfer services, cash pick-up services, and international wire transfers. Each option may have different fees and exchange rates, so it is important to compare and choose the best option for your specific needs. Find out how to send money from the USA to India.
What is the cheapest way to send money to Mexico from the USA?
Many international money transfer companies offer competitive exchange rates and low fees for sending money to Mexico. It is important to compare prices and services before choosing a provider, as some may have additional fees or charges for certain payment methods. Using a bank to transfer funds internationally could also be an option, but they tend to have higher fees than dedicated transfer companies. Find out the best options for USA to Mexico money transfers.
What is a free money transfer? There are a lot of external factors that dictate whether a money transfer will be “free” and one of these factors is destination. Domestic transfers, for example, are typically free regardless of the financial provider, because the money is simply being sent between two accounts in the same country, […]
Europe is home to 44 countries, but not all of them use the euro. This makes sending money to the continent less straightforward than you may have originally anticipated. Those looking for cheaper alternatives when sending an international money transfer, must always consider the destination country, currency and costs involved. To reduce the cost of sending money to Europe, we have put together this guide which outlines the best ways to save money on European remittances.
Article Factchecked by Elliot Laybourne on 20th July 2022
Elliott is a former investment banker with a 20 year career in the city of London.
During this time he held senior roles at ABN Amro, Societe Generale, Marex Financial and Natixis bank, specialising in commodity derivatives and options market-making.
During this time, Elliott’s client list included Goldman Sachs, JP Morgan, Credit Suisse, Schroders Asset Management, and the Pennsylvania State Public School Employees Retirement System, amongst others.
Mehdi is a writer and editor with over five years of experience in personal finance, writing for brands including MoneySuperMarket, Equifax and The AA. He graduated from Brunel University with a BA and MA, and likes to spend his free time hiking, travelling, and reading.