It’s fairly common in the US for people to send large amounts of money abroad. The best way will depend on your specific situation. When making your decision, it is important to take into consideration things like transfer fees, exchange rates, IRS tax regulations, and more.
What are the best ways to transfer large amounts of money overseas?
You will find that money transfer specialists often offer the most competitive exchange rates for your transfer and charge lower fees than what you’ll find at your bank. There are certain providers such as OFX and Currencies Direct who specialize in helping people make large transfers overseas.
These types of companies exist to make the process of sending money overseas faster and more straightforward.
Pros
Could save you $1,000’s if you use a money transfer service over a US bank.
Diverse payment options, including payment by credit card, debit card, bank account and more.
Many transfer specialists offer step-by-step guidance for the entire process and it can be sent entirely online.
You can fix your exchange rate for up to 12 months and transfer later.
Cons
Many options exist, so finding the best one may seem tricky.
Some money transfer specialists don’t have transparent fees and exchange rates.
You have to trust a company with your money, so vetting them is important.
We’ve vetted our favorite money transfer specialists for you to save time and money. However, if you would rather compare providers yourself, you can use our comparison table to look at transfer speeds, fees and exchange rates. When you have made your choice, simply click Go to site.
Compare money transfer specialists
Our table lets you compare the services you can use to send money abroad. Compare services on transfer speeds and fees, then click Go to site when you're ready to send.
While most banks are able to initiate an overseas transfer, they tend to be the most expensive option. When dealing with smaller transfers, the ease of using your local bank can be worth the fees and unfavorable exchange rate. But for larger transfers, you’ll see a noticeable cut taken. It is also worth keeping in mind that your bank may have wire transfer limits in place, so you’ll need to ask ahead of time if you plan on making a large international wire transfer over $10,000.
You have two choices when sending a bank-to-bank transfer:
Wire transfer. This is where you can send money directly from your bank account to another bank account, usually by filling out a form with the contact and account details of the recipient. This tends to be the more expensive option, and you should double-check how much your bank charges for outgoing international transfers before sending money.
ACH (automated clearing house) transfers. This transfer is made via the ACH network and it tends to be cheaper per transaction than a wire transfer.
Pros
You already trust your bank with your money.
You can typically initiate the transfer online, in-person or by phone.
You don’t have to trust any companies with your money.
Cons
More expensive than other options.
Typically far slower than other options.
Have to pay with funds that are already in your bank account.
3. Cash Pickup
Sending money for cash pickup is a convenient way to make an international money transfer, particularly if you or your recipient is under or unbanked. There are several companies that offer cash-to-cash transfers including Ria Money Transfer, MoneyGram and Western Union. Finding the right company for your transfer is important, so make sure to compare your options.
Pros
Recipient doesn’t need a bank account.
Sender doesn’t need a bank account.
Cash transfers often transfer faster than bank-to-bank transfers.
Cons
Most cash-to-cash specialists have a maximum sending limit.
Large amounts of cash will have to be picked up by the recipient, which could be dangerous.
Higher fees are typically applied to cash-to-cash transfers, compared to using an international money specialist that transfers to a bank account.
4. International bank draft
An international bank draft is issued by a bank on behalf of the payer. It allows another bank, typically in another country, to draw funds directly from the issuing bank. International bank drafts can be drawn in a foreign currency, removing the need to speculate on future exchange rates.
Overall, international bank drafts operate similarly to domestic orders sent within the US, except that they are created in a foreign currency.
Pros
Accepted in many parts of the world.
Relatively cost effective when compared to wire transfers between international banks.
Can only be cashed at a bank by the person listed on the international bank draft.
Cons
Slow, as they have to be physically mailed or hand delivered between countries.
Difficult and time consuming to replace if lost or stolen.
5. Prepaid debit cards
With some services, you can send funds via a prepaid debit card. The sender loads a prepaid debit card with cash funds. The recipient can then withdraw them using the prepaid debit card. Alternatively, you can transfer money from the prepaid card to a bank or card account.
Prepaid debit cards tend not to charge transfer fees. However, you will most likely have to pay an activation fee or monthly fee.
Pros
Relatively cost effective when compared to bank transfers
Recipient doesn’t need a bank account
You can lock in a set exchange rate
Cons
Most prepaid debit cards carry an activation fee or a monthly fee
There may be a limit on how much you can load onto the card
6. Cryptocurrency
If you hold cryptocurrency, you can send it to a wallet anywhere in the world. Many cryptocurrencies will also let you trade cryptocurrency for fiat currency (a government-issued currency like US dollars or euros). Which means it is possible to exchange US dollars for a cryptocurrency like Bitcoin, then trade your cryptocurrency for euros.
However it’s not a simple process, and you’ll likely encounter percentage-based fees at each step, which makes it an expensive option. Here are the key steps to take when transferring money overseas using bitcoin:
Transfer funds to an online cryptocurrency exchange.
Use your local currency to buy cryptocurrency, which goes into a digital wallet.
Sell your cryptocurrency for a foreign currency.
Withdraw your funds from the exchange platform.
Pros
You can send money directly to your recipient’s cryptocurrency wallet address, removing the need for companies as intermediaries.
Your transaction can’t be canceled.
Cons
Requires a lot of technical know-how to avoid errors.
Prices can be volatile, so although you may save money by avoiding fees, you could lose it if the price of the cryptocurrency you’re using as an intermediary drops.
Depending on the route you use, there may be many fees to pay.
Frequently asked questions
There are several ways that you can transfer large amounts of money internationally. The cheapest and fastest option is most likely an international money transfer provider. Specialist money transfer companies tend to offer the most competitive exchange rates and charge lower fees than your local bank. Use our table to compare providers' transfer speeds and fees.
It is legal to transfer large amounts of money. However, you'll need to abide by US laws put in place to protect both your money and the interests of the government. Which means that all transfers that are over $10,000 will need to be reported to the IRS.
Yes. In fact, all wire transfers may be reported to the IRS by the company you are sending them through. Failing to report a large money transfer on your part may get you into trouble. The typical international transfer limit that should be reported to the IRS is $10,000 and above. Learning about taxes due on money transfers can save you trouble down the line.
There is no maximum limit on how much you can transfer overseas. However, you will need to make sure that you file the appropriate tax forms. Additionally, if you are sending $1 million or more overseas, check that your transfer provider can securely handle transfers of that size before getting started.
One of the fastest ways to transfer money internationally is to use a cash pickup service. They allow your recipient to have almost instant access to the money you have sent, without the need for a bank account.
One of the safest ways to send large amounts of money abroad is to use a reputable, regulated money transfer provider or your bank. You will most likely find that specialist money transfer services are less expensive, and have robust security measures that will protect both parties involved.
There is no limit to how much money you can transfer, but in most cases banks and money transfer services will have their own upper limits. If you are transferring above $10,000, then you will also have IRS reporting responsibilities.
The rules around bringing large sums of cash to another country will depend on which country you are visiting. It is worth checking your destination's custom guidelines before making your trip.
Also keep in mind that under US law, anytime you travel internationally with money, you're required to declare any cash over $10,000.
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Kevin Chen is a personal finance expert and a former writer at Finder. His expertise has been featured in CNN, U.S. News and World Report, Lifehacker and CreditCards.com, among other top media.
How do you know if your international money transfer made it safely? Learn how to track or cancel, and find out what your rights are when it comes to sending money.
From bank transfers to specialist money transfer companies, there are several options available when you need to transfer money overseas from your bank account.
If you need to transfer money overseas using your credit card, you can do so via your bank, MoneyGram, Western Union and PayPal. This can be useful in emergency situations, but credit card transfers are usually not a cost-effective option.
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