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A move abroad calls for more than just a money transfer.
You'll start by transferring funds to a new country, and end up living there like a local.
This makes our recommendations a bit more interesting.
I'll go into much more detail later on, but for now the summary is:
Avoid banks: while they might advertise low or no fees, their exchange rates can be 3% or more higher than the best alternative. While they are convenient and tempting, banks are very expensive for currency transfers.
Use a money transfer company instead: specialist companies will offer you a much better deal overall. Some will give you access to the mid-market rate plus fees, and others have zero fees but a slightly inflated exchange rate. Both routes outperform banks. To find out which is best for you, compare live rates with our search tool.
Open a multi-currency account: many expats who live abroad still have ties to their original country. You might be receiving income or pension distributions, paying bills on any committments you still have, or sending money to/from friends or family. Opening a multi-currency account gives you a global account for seamless and cost-effective money transfers.
Example: relocation costs & FX impact
Let's look at some of the main cost categories that are typically involved when relocating abroad.
For the purposes of this example, we'll assume an American couple with their funds in USD is moving to Europe.
Payment | USD amount sent (example) | EUR amount received (bank) | EUR amount received (specialist) | Potential saving |
|---|---|---|---|---|
Real estate - deposit | $50,000 | €53,595 | €55,340 | €1,745 |
Real estate - final payment | $250,000 | €268,055 | €276,700 | €8,645 |
Shipping | $10,000 | €10,700 | €11,070 | €365 |
Transfer of savings | $150,000 | €160,825 | €166,020 | €5,195 |
Transfer of retirement accounts | $450,000 | €482,515 | €498,060 | €15,545 |
Grand total | $910,000 | €975,690 | €1,007,190 | €31,495 |
Money transfer companies for moving abroad
Of all the sources of stress when moving to another country, foreign exchange doesn't need to rank high on the list.
For me, managed FX services (also known as currency brokers), are the best ways of bringing a controlled calm to the process.
Wise, Xe and othjer more online-focused companies do offer cost-effective, secure & reliable alternatives. However, with highly personal service, advice, and support by phone and email, FX brokers have the edge for large or complex money moves.
Not to mention they also offer great rates, ability to lock-in rates for future transactions, and in some cases, rate match guarantees.
Currency brokers suitable for moves abroad
Managing money in multiple currencies
Many expats or those who have emigrated keep close ties with their origin country.
You might have friends and family back home, making regular or occasional trips back to visit.
There could be income that continues to be generated back home - like investment proceeds, dividends or rental property income.
You may also continue to pay costs in your country of origin, from school fees to mortgage payments.
That's why multi-currency accounts are so helpful for those with an active life in more than one country.
