Send Money Overseas with a Great Rate and Low Fees
Shop around for the best deal when you need to send an international funds transfer and you could save a whole lot of money.
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.
What are my options when sending money overseas?
Bank-to-bank transfers
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.
Compare international money transfer services
Table: sorted by promoted deals first
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.
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We only list licensed services that are overseen by a government regulator. Every service we compare has been assessed and reviewed by our editorial team.
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.
Case Study: Banks or money transfer services?
Many Brits make their bank their first port of call when sending money overseas but, as mentioned, banks do not offer value for money. With their high fees and disappointing exchange rates, banks can end up slicing off more than their fair share of your account balance when you send money overseas.
You can find yourself a much better affordable deal by using an online money transfer provider, as Barry found out. Barry’s girlfriend lives in Germany, and he wants to send her a gift of £1,000 for her upcoming birthday. But when Barry sees the paltry exchange rate on offer from his bank and just how much lower it is than the mid-market rate he sees reported on the evening news, he decides to compare two online money transfer providers to see which one is up to the task of sending his money to Berlin.
| Money transfer company 1 | Money transfer company 2 | |
|---|---|---|
| Exchange rate | 1 GBP = 1.3474 EUR | 1 GBP = 1.3397 |
| Transfer fee | £2.50 | £5 |
| Transfer methods | Online bank account transfer | Online bank account transfer |
| Transfer time | 1-2 business days | 1-3 business days |
| Amount received (in EUR) | 1,347.40 EUR | 1,339.70 EUR |
As you can see, just by taking a couple of minutes to do a simple comparison, Barry has saved £2.50 in fees and also sent almost 8 Euros extra to his beloved.
How do I send an international money transfer?
The process for sending money overseas varies depending on the provider you choose and the transfer method you select. However, many companies will require you to sign up for a free account, which can usually be done online. You’ll need to provide your name, address, contact details and proof of ID to do so, as well as either your bank account or credit card details.
The next step in the process is to provide all the important details of your transaction: How much money are you sending? Where are you sending it to? In what currency will your beneficiary receive the funds? You’ll also need to choose whether you want to send a bank account deposit or a cash pickup transfer if this is an option.
Finally, you can pay for your transaction by sending the funds to your transfer provider. The company will then convert your Pounds Sterling into the desired currency and send it on to your beneficiary. You’ll be given a tracking number to monitor the progress of your funds and will often also receive an email or SMS notification when the transaction is complete.
Frequently asked questions
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