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Money Transfer Finder™: Compare international money transfer services
Compare these money transfer services to find cheap, quick and convenient ways to send money overseas.
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Are you looking for a suitable international money transfer option? There are more foreign exchange businesses than ever that enable you to send money overseas in minutes. Whether you need to send money back home or pay an employee based overseas, specialist international money transfer companies can give you a better deal than your bank.
Updated March 16th, 2020
What are the differences between international money transfer companies and banks?
The cost is the main difference between bank telegraphic transfers and transfers using foreign exchange providers.
International bank-to-bank transfers are an expensive way to send money overseas. Banks apply a higher margin to their foreign exchange rates and charge more for the service than forex providers. The receiving bank and other go-between institutions may also charge a fee to deliver funds when you send money overseas directly from your bank account.
There are exceptions.
Bank accounts to use for overseas online transfers
International banks, such as Citibank and ING, can offer a better deal on international money transfers than homegrown financial institutions. But these banks have limited services and capabilities.
For example, Citibank offer free global transfers between Citibank accounts in specific countries. However, transfers can take a number of business days and the recipient must be a Citibank customer.
ING Bank is thought to be the best local bank that can offer a good deal on international money transfers. Users must already be registered with the bank to use its services, but they can reap the benefits on offer to send to and from the Netherlands.
Using your bank
Bank-to-bank telegraphic transfers are a little more straightforward. Just log into your online banking facility and add a new international payee in the “pay anyone” menu. You’ll be asked to enter the SWIFT or IBN code as well as the payee’s personal and bank details.
Other differences
Besides rates and fees, banks and foreign exchange services differ in the transfer time and collection options.
- Transfer time. Bank-to-bank transfers can take longer than transfers using an online foreign exchange provider.
- Collection options. Online international money transfers using a forex provider can be made available as cash in some cases.
Using a foreign exchange provider
- Get a preliminary quote. Use foreign currency calculators to get an international money transfer quote. These calculators will only provide you with an indicative rate. The actual rate at the time you accept the transfer may be different depending on how often the provider updates their rates.
- Create an account. If you like the quote from the foreign exchange provider, you can register your details to create an account. In most cases, you must verify your identity to complete the registration by providing an accepted form of identification, such as your passport or driver’s licence. You may also be asked to verify your address by providing a utility bill or government notice.
- Get a detailed quote. Once you’ve created your account, you can log in to the provider’s website and request a second quote to get the actual exchange rate for your transfer.
- Accept the transfer. If you’re happy with the quote, you can make a payment to the foreign exchange provider to confirm the transaction. Payment processing time depends on how you make a payment, for example, credit card and debit card payments are processed sooner than transfers from your bank account.
- Track the transfer. Most money transfer companies let you track your foreign exchange order through their online customer portal.
How to transfer money overseas
The general steps are as follows:
- Log in to your money transfer account or profile.
- Choose the recipient country, transfer amount and transfer method.
- Pay with your credit card or debit card.
- You’ll receive a confirmation email or SMS with your tracking number.
- The money will be deposited into your recipient’s local bank account within a couple of business days.
How do I get a competitive exchange rate?
Getting a competitive exchange rate isn’t difficult, but finding a good rate is only half the battle. The fees for your transfer must also be competitive, otherwise you might still lose out.
Getting the best* rate when transferring money
Here are some tips to ensure you get the best deal on fees and exchange rates when transferring money:
- Find out what current rates are. You should have a reliable baseline to compare the rates offered by money transfer companies and banks. Two well-known currency conversion resources include XE and Oanda. These are free tools you can use to see live conversion rates and both feature currency conversion calculators.
- Compare by asking for a quote. Getting the best exchange rate can be difficult because money transfer services can charge high fees but offer competitive rates. This means sometimes it’s a good idea to ask for a quote, and then compare this to quotes from other providers.
- Ensure you’re comparing the most accurate rate. This links in with the above point. Until you register with a money transfer service, you’re more than likely seeing their indicative exchange rates and not the most accurate rates available. Ensure that if you choose not to compare quotes as the above point suggests, that you compare the exchange rate you’ll actually receive, which usually will require you to register with a service or make a call.
Helpful advice when sending money overseas
- Don’t transfer money internationally using your bank account. International money transfers from your bank account can be an expensive way to send money overseas. Use comparison services and websites to shop around and find the best deal.
- You should be aware of any limitations and sanctions placed on the recipient country. International money transfers can be collected as cash in some countries; while bank account deposits are the only transfer option in other countries. International money transfer services such as Western Union offer different collection options for different countries. Furthermore, due to government regulations, you won’t be able to send money to various countries.
Definition: Best* money transfer service
There is no single best money transfer service, and the best service for you may not be the best for someone else. This is because there are many factors to consider when sending an international money transfer in addition to the exchange rate, including the transfer fees, the payment method, the speed of delivery and the level of customer service. One person may need to transfer money within 24 hours, while others may have no time frame.
You should consider a range of products when deciding which provider is best suited to your personal money transfer needs.
Wait, you still haven’t answered my question!
It’s an industry standard for international money services to use a 128 bit SSL encryption system as a minimum. Many also hold a financial services licence and all must adhere to strict anti-money laundering regulations.
In most cases you can check the progress of your international money transfer, and therefore you are provided with complete control and visibility of your transactions. You should be able to access your account 24/7 to check its progress.
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