Finder makes money from featured partners, but editorial opinions are our own. Advertiser Disclosure
A $1,000 money transfer journey
How much money will my recipient receive?
Where will I lose money?
You’re at risk of losing money in two main steps:
- The transaction fee to send your money.
- The transfer service’s exchange rate.
These are the two areas where the vast majority of money transfer services will take money from you. You may encounter other fees, but they’re not universal.
Calculations
Bank transfer
- Start with $1,000.
- An outgoing international wire transfer costs $50.
- $1,000 – $50 = $950
- There’s a 4% spread between the mid-market rate and the bank’s exchange rate, so we lose $38.
- $950 x 0.04 = $38
- $950 – $38 = $912
- There’s a receiving fee of $50 that your recipient’s bank will charge when they accept your money into their bank account.
- $912 – $50 = $862
- Your recipient gets $862.
- Total loss = $138
Foreign money transfer service
- Start with $1,000.
- The transfer fee is $5.
- $1,000 – $5 = $995
- There’s a 0.5% spread between the mid-market rate and the FMT service rate, so we lose $5.
- $995 * 0.005 = $4.975 (We’ll round to $5.)
- $995 – $5 = $990
- Your recipient gets $990.
- Total loss = $10
Cash transfer
- Start with $1,000.
- The fee for an in-person transfer is $7.
- $1,000 – $7 = $993
- There’s a 3% spread between the mid-market rate and the cash-transfer service exchange rate, so we lose $30.
- $993 x 0.03 = $29.79 → Round to $30
- $993 – $30 = $963
- Your recipient gets $963.
- Total loss = $37
Bottom line
As you can see, Option 2, or independent money transfer service, takes a mere $10 out of the transaction, compared to $37 with a cash pickup service and a whopping $138 from a bank-to-bank transfer.
Compare your international money transfer 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.
{"niche":"USFMT"}
Other fees
Will the receiving bank always assess a fee?
This depends on the bank you’re sending money to. US banks typically charge for receiving international transfers — often $15 to $30. In some countries, such as France, many multinational chains don’t charge receiving fees, while smaller banks may.
Ultimately, you’ll want to contact your recipient’s bank and ask about receiving fees.
Will I have to pay any other fees?
Your bank may not have a direct relationship with the bank you’re transferring money to. In that case, you could pay intermediary fees when your money is sent through other banks. Contact your bank to find out if you’ll need to pay intermediary fees.
Are there account opening fees?
You won’t typically see account opening fees with a money transfer service, cash transfer services or bank. However, a bank may require a minimum deposit or charge a monthly fee if your account has less than a certain amount.
For example:
- Bank of America requires a $300 minimum daily balance; otherwise, it charges a $5 monthly fee.
- Chase requires a $300 minimum daily balance; otherwise, it charges a $5 monthly fee.
- Wells Fargo requires both a $25 minimum opening deposit and a $300 minimum daily balance; otherwise, it charges a $5 monthly fee.
As with any service, take the time to compare all of your options before choosing one that is right for your needs.
More guides on Finder
-
Bitstamp vs Coinbase
We compare two of the largest crypto exchanges in the world to see how they stack up.
-
Patriot Bank High-Yield Money Market Deposit Account account review
The Patriot Bank High-Yield Money Market Deposit account is a free savings account that earns 0.55% APY.
-
Apps like MoneyLion
MoneyLion is a pay advance app stacked with features — and hefty fees to match. We’ve lined up 6 alternatives to help you go easy on your wallet.
-
Otis Wealth review
An investment platform that lets you buy and sell fractional shares of culturally significant items.
-
Marcus Invest review
Features, costs and ratings to consider before you open an account.
-
First Citizens Online Savings review
First Citizens Bank Online Savings helps you manage your money, but its APY isn’t competitive.
-
First National Bank eStyle account review
First National Bank eStyle is an online bank account without check-writing privileges.
-
Dailypay pay advance app review
Dailypay can advance you up to 100% of your net pay — but it’s only available to you if your employer signs up. And if any problems arise, customer service is lacking.
-
Payactiv pay advance app review
Payactiv offers advances of up to 50% of your earned wages, sometimes for free. But it’s limited if your employer isn’t a partner.
-
Zirtue peer-to-peer lending app review
This app makes it east to borrow from friends and family at a low rate. But loan amounts and terms aren’t right for everyone.
Ask an Expert
