Whether you’re a small business owner paying an overseas supplier or a worried parent helping out a cash-strapped son who is off travelling the world, there are plenty of reasons why you might need to send an international money transfer.
Traditionally, such transfers were usually sent via your bank, or by a specialist wire transfer service such as Western Union. But recent years have seen an increase in the number of online providers specialising in transferring money overseas. Companies such as TorFX, Wise and XE offer competitive exchange rates and lower fees.
Compare international money transfer services
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Our table below lets you compare services you can use to send money abroad. Compare fees, exchange rates and discounts from different money transfer services, and when you have made your choice, click Go to site.
If you have an account with any major bank in the UK, you should be able to send an international transfer from that account to your beneficiary’s bank account overseas. While this approach is reliable and convenient – it can be costly. Banks are known for offering poor exchange rates and charging exorbitant transfer fees, so you will find better value for money by looking elsewhere.
Online money transfer companies
These companies such as Wise and XE, specialise in providing cost-effective money transfers. Because they deal in large amounts of foreign currency and have fewer overhead expenses, they can offer better exchange rates than traditional banks and from money transfer companies that offer cash pickups. However, it’s important to shop around to find a reputable transfer company that offers cost-effective transactions.
Money transfer companies with cash pickup options
These companies allow you to send cash overseas which can then be collected by your beneficiary from their nearest transfer branch. With the funds you send often able to be collected within minutes, this is a fast and convenient transfer option for many. Western Union and MoneyGram are the two largest providers of this transfer option and each company runs its own extensive transfer network. However, the exchange rates and fees available for this type of transfer may not always be as competitive as those offered by online money transfer companies.
International banker’s draft
An international banker’s draft involves getting your bank to write a cheque for you and then sending it overseas. Though a secure and reliable transfer method, this option is quite dated and is becoming far less popular with every passing year. Not only will you need to pay a not insubstantial fee to send the draft, but you’ll also have to endure a long waiting time before it can be cashed by your recipient. It’s worth noting that your recipient may also incur a fee from their bank when cashing the cheque.
PayPal
PayPal is a very handy tool when you’re doing a spot of online shopping, but it can also come in handy for international money transfers. PayPal allows you to send money to more than 200 countries around the world, but as its fee structure is based on the amount of money you send, PayPal is only really an option worth considering for smaller transfer amounts.
How can I save money when sending money overseas?
Keep the following money-saving tips in mind when you’re looking for an affordable way to send funds overseas:
Shop around. If you’re willing to do a little bit of research and compare your money transfer options, you could enjoy a sizable saving. A slight difference in the exchange rate from one company to the next can make a huge impact on the amount your beneficiary receives, while the difference in transfer fees between providers can be quite astounding at times. Compare your options at Finder to find a reputable provider that offers secure and affordable transactions.
Send funds within the same bank. Some banks with branches in multiple countries, for example Citibank or HSBC, will offer cheap transfers if you’re sending funds to an account with the same bank overseas.
Send larger amounts. Although costs differ between money transfer providers, as a general rule, the larger the transfer you send the more affordable it will be. Many companies waive their transfer fees if you send more than a set amount, such as £5,000, while large transactions can often also attract better exchange rates.
Use flexible transfer options. Some companies offer forward contracts, which allow you to lock in an exchange rate now, when it’s favourable, for an international money transfer that will be sent in the future. Another option is to place a limit order, which allows you to specify certain conditions that must be met before your transfer will be sent, such as a certain exchange rate being available.
Is speed important? If it doesn’t matter to you if your funds arrive within one hour or a few days, save money by selecting the standard transfer option instead of an express method.
Should I send money in one lump sum, or through multiple transfers?
Expats around the world need to send money home for credit card bills, loan repayments or mortgages. The larger the transfer you make, the better your rate will be as the transfer companies take less of a cut. If you can afford to do it in one lump sum, and you are transferring over £5,000, send as much at once as possible and you’ll get the best deal.
You have more time to shop around with a large transfer because you can wait for the exchange rates to peak. Buy low, sell high!!!
With a large transfer you will get a dedicated customer service assistant who will guide you through the differences between a spot and fixed rate
Sending money in small, regular chunks is a more manageable solution for some people. While providers tend to give you a better rate for big transfers, there are some providers that offer great value for smaller ones.
This is ideal for those who can’t get a large lump sum together quickly. If you’re looking to pay into an overseas pension, make mortgage repayments, or anything that requires steady smaller payments, this option is worth considering. Setting up a regular payment works just like a direct debit, but you need to shop around and find a provider who gives a good rate.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
Matthew Boyle is a banking and mortgages publisher at Finder. He has a 7-year history of publishing helpful guides to assist consumers in making better decisions. In his spare time, you will find him walking in the Norfolk countryside admiring the local wildlife. See full bio
Matthew's expertise
Matthew has written 244 Finder guides across topics including:
Helping first-time buyers apply for a mortgage
Comparing bank accounts and highlighting useful features
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