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XE Money Transfer vs. TransferWise
Which of these two money specialists offers cheaper, faster, more flexible transfers?
XE and Transferwise 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 XE and Transferwise side by side on fees, exchange rates and transfer speeds.
The fees and rates used in this comparison are accurate as of June 8, 2020.
Disclaimer: The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.
Quick verdict
Which has lower fees?
XE
With XE, you pay no fee on your money transfer, no matter how much you’re sending.
TransferWise
Fees vary depending on where your recipient lives and how much you’re sending. TransferWise charges a fixed fee plus a percentage of each transfer. These fees vary depending on the currency and country you’re sending to.
Winner: XE
Although TransferWise typically charges lower fees than banks and other money transfer specialists, it can’t trump XE’s no-fee service.
Crunching the numbers: Sending $1,000 and $10,000 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 ACH bank debit.
| XE $1,000 | TransferWise $1,000 | XE $10,000 | TransferWise $10,000 | |
|---|---|---|---|---|
| Fee | $0 | $10 | $0 | $100 |
| Exchange rate | 1 USD = 21.33 MXN | 1 USD = 21.50 MXN | 1 USD = 21.41 MXN | 1 USD = 21.50 MXN |
| Transfer speed | 1 – 2 days | 1 – 2 days | 1 – 2 days | 1 – 2 days |
| Amount received | MXN 21,330 | MXN 21,287 | MXN 214,137 | MXN 212,869 |
Which offers better exchange rates?
XE
XE’s exchange rates are based on the live foreign exchange markets. They’re often better than the rates from banks and competitive with other money transfer specialists.
TransferWise
TransferWise quotes the mid-market rate for money transfers. Banks and foreign exchange specialists use the mid-market rate when trading with one another, and it’s often higher than prevailing foreign exchange rates.
Winner: TransferWise
TransferWise always gives you the mid-market rate. However, TransferWise’s fees may end up costing you more, even though XE is offering a weaker rate. Use the table above to compare a transfer with your specific sending destination and preferred amount.
Which is faster?
XE
XE estimates one and four days for the money to reach your recipient. Delivery time typically depends on your recipient’s country.
TransferWise
TransferWise provides a calculator that can help you estimate how long it will take for your money to get to your recipient. Timing depends on where you live, your recipient’s country and how you pay for the transfer. Credit card payments tend to move faster than bank transfers, for instance.
TransferWise gets a lot of reviews for the accuracy of its delivery estimates.
Winner: Tie
With so many variables that can affect how long your friends or loved ones might have to wait, we simply can’t determine which of these two money transfer specialists are better when it comes to speed.
General features
XE
XE Money Transfers specializes in international transfers of any size, as orders placed over the phone have no maximum limit. XE charges no fees and allows you to send to more than 130 countries around the world. It also offers an app that provides continuously updated exchange rates on hundreds of currency pairs. Overall, XE’s strong rates makes it worth checking before you send your next transfer, particularly if you’re sending a large amount of money.
TransferWise
TransferWise always gives you the mid-market rate, something few companies do in the money transfer market. On top of this, TransferWise offers extremely transparent fees, so you’ll know exactly what you are being charged for and how to adjust your transfer accordingly to possibly save money. With TransferWise’s straightforward website you can sign up and have your first transfer sent within a few minutes, or call the company and send a transfer by phone.
Bottom line
XE Money Transfer provides no-fee money transfers at rates that beat the banks, similar to other online money transfer specialists. You can send as much as $500,000 online and more by calling a rep. TransferWise, however, can get you more money for your dollar with a stronger mid-market rate, especially on high-dollar transactions.
Still not convinced that XE or TransferWise is for you? Compare your options to send funds overseas in our guide to international money transfers.
Looking for more options?
Use our comparison calculator below to compare transaction fees, exchange rates and other key features across a range of leading international money transfer services.
Disclaimer: Exchange rates change often. Confirm the total cost with the provider before transferring money.
Frequently asked questions
What is the mid-market rate?
The mid-market rate is the actual value of your money on the world market compared with another currency. It’s the midpoint rate between global supply and demand for that currency — and the rate at which banks and transfer services trade the currency among themselves.
Do I pay an account opening fee when signing up with XE and TransferWise?
No. Opening an account with both services is free.
Can I use cash or issue a check to fund my money transfer transaction with XE and TransferWise?
No. Neither service accepts cash or check payments.
Do XE and TransferWise compare favorably with banks for sending money abroad?
Yes. Both XE and TransferWise offer lower fees and stronger exchange rates than you’ll find at your local bank.
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