Remitly and Xoom are two popular international money transfer services that allow you to send funds to dozens of countries around the world. To decide which service offers the best value for money, compare Remitly and Xoom side by side on fees, exchange rates and transfer speeds.
The fees and rates used in this comparison are accurate as of March 30, 2020.
Remitly’s transaction fees vary based on how much money you’re sending, the country you’re sending it to and whether you choose an Express or Economy transfer. For example: Mexico
Sending $499 or less from the US to Mexico – $3.99 fee
Sending $500 or more from the US to Mexico – $0 fee
Xoom’s transaction fees vary depending on your payment method, the amount and currency you send and how your recipient collects the funds. For example: Mexico
Sending $500 paying by debit card – $12.99 fee
Sending $5,000 and paying by debit card – $75.99 fee
Philippines
Sending $500 and paying by debit card – $5.99
Sending $5,000 and paying by debit card – $151.49
Winner: Tie
Remitly almost always offer lower fees for popular destinations, especially if you aren’t in a hurry.
However, Xoom is often more affordable if you need to send money quickly and are paying from your bank account. That said, it’s worth using the transfer calculator that each service offers on its website to work out which one offers lower fees for the specific transaction you plan to send.
Crunching the numbers: Sending $400 and $2,000 to Mexico
To give you an idea of how they directly compare, let’s look at their fees and exchange rates for two different transfer amounts while paying by debit card.
Remitly $400
Xoom $400
Remitly $2,000
Xoom $2,000
Fee
$3.99 (Express rate)
$10.99
$0 (Express rate)
$50.99
Exchange rate
1 USD = 23.45 MXN (Express rate)
1 USD = 22.67 MXN
1 USD = 23.45 MXN (Express rate)
1 USD = 22.67 MXN
Transfer speed
Within minutes
Within minutes
Within minutes
Within minutes
Amount received
MXN 9,286
MXN 8,819
MXN 46,900
MXN 44,184
Which offers better exchange rates?
Remitly
In addition to fees, Remitly makes a profit by adding a margin on top of the mid-market exchange rate. For example, if you want to send money to Thailand:
Mid-market rate: 1 USD = 32.64 THB
Remitly’s rate: 1 USD = 32.08 THB
That’s a margin of 1.72%.
It’s also worth noting that Remitly regularly offers first-time rates to new customers that are higher than their standard daily rates — so new customers can lock in stronger rates for their first transfer.
Xoom
Xoom also adds a margin on top of the live mid-market rate. Using the same example of sending money to Thailand:
Mid-market rate: $USD = 32.64 THB
Xoom’s rate: 1 USD = 31.33 THB
This works out to a margin of 4.02%.
The mid-market rate is the exchange rate that you see quoted on Google or currency exchange platforms like Xe. This is the rate at which banks trade two currencies among themselves, and it reflects the true value of one currency relative to another on the global market.
Winner: Remitly
Remitly’s exchange rates are generally slightly higher than Xoom’s across the board. While there wasn’t a major difference between the rates offered, this still means that more of the money you send will make it to your recipient.
Which is faster?
Remitly
Remitly offers two choices when sending your transfer:
Express transfers are typically sent within minutes and usually attract a fee. However, this fee is often waived on larger transactions to specified destinations.
Economy transfers involve paying by bank deposit and usually take 3-5 business days.
Xoom
Xoom’s transfer times vary depending on the following:
Where you’re sending your money.
Whether you send a bank deposit, cash pickup or home delivery.
Whether you pay via bank account, credit card or debit card.
However, Xoom claims that most transfers are available for your recipient within minutes.
Winner: Tie
Both Remitly and Xoom offer options that allow you to send money overseas within minutes, so they can’t be separated in this category.
General features
Remitly
Remitly specializes in international transfers in more than 30 different currencies. To get started, sign up for an account online or download the Remitly app on your smartphone. You can then enter the amount of money you want to send, your recipient’s information and pickup method and your payment details. Make sure to double-check the exchange rate and any fees that apply before sending your transfer.
Xoom
Xoom offers international money transfers, mobile top-ups and the ability to pay bills all around the world. If you want to send a personal transfer, the first step is to sign up for an account online or download the Xoom app to your phone. You can then specify how much money you want to send, in which currency and where to, as well as choose how your recipient will access the funds. The final step is to review all transaction details and confirm the transfer.
Remitly beats out Xoom in saving you money, but both are pretty evenly matched when it comes to speed. The fact that Remitly’s exchange rates are generally (but not always) slightly better means that it comes out on top almost every time. However, given the wide range of factors that can affect transfer fees and exchange rates, it’s worth comparing your transfer options before deciding.
Looking for more options?
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.
It depends on how long you’ve been using the service and how much personal information you’ve provided. You can send up to $2,999 within the first 24 hours of opening an account if you haven’t provided a Social Security number or government-issued photo ID.
With proper verification, your sending limit can be increased to $60,000 after 180 days.
It depends on how long you’ve been using the service and how much personal information you’ve provided. You can send up to $2,999 within the first 24 hours of opening an account if you haven’t provided a Social Security number or government-issued photo ID.
With proper verification, your sending limit can be increased to $100,000 after 180 days.
Yes, both Remitly and Xoom encrypt your information to keep you safe. But if you ever get an email asking you to send money to a friend or family member online, it’s safest not to click the link. Scam artists often use phishing emails to get personal information.
Call your loved one to make sure the email actually came from them, and then type the transfer provider’s URL directly into your address bar.
Whether products shown are available to you is subject to individual provider sole approval and discretion in accordance with the eligibility criteria and T&Cs on the provider website.
Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors.
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.
If you’re looking for a secure way to send money overseas, an international bank draft could be for you — but if speed is important, consider using a money transfer service instead.
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