Which of these two money specialists offers cheaper, faster, more flexible transfers?
Founded in 1993, XE Money Transfer has since become one of the world’s largest money transfer services. It boasts more than $250 billion transferred since its start.
The younger TransferWise is a peer-to-peer specialist founded in 2010 by two friends who put money in each other’s bank accounts in different countries, avoiding bank fees in the process. Eight years later, TransferWise now moves more than $1 billion for more than a million customers annually.
 |
 |
|
|---|---|---|
| Fees | None | From 0.5% to 1.5% of your transaction |
| Exchange rates | Real-time | Mid-market rate |
| Speed | 1-4 days | 1–4 days |
| Maximum transfer | None |
Individuals: $49,999 daily and $199,999 annually Business: $199,999 daily and $1 million annually |
|
Read review |
Read review |
XE Money Transfer and TransferWise: How they work
XE Money Transfer
XE Money Transfer doesn’t charge a fee for its services, regardless of how much you’re sending. Rather, it makes money by adding a margin on the mid-market rate.
XE supports bank-to-bank transfers only, requiring you to send money first to your XE Money Transfer account. It then completes the transfer to your recipient’s business account.
TransferWise
TransferWise’s transfer fees are based on the amount you’re sending and the location of your recipient. Its rates, however, are as good as it gets: the mid-market rate, or the rate banks use when transferring among themselves.
TransferWise offers flexible transfers beyond bank accounts, accepting payment by credit or debit card and through Facebook Messenger, Apple Pay and Android Pay.
After you set up a transfer, TransferWise converts your US dollars into your recipient’s currency at the mid-market rate, pairing you with a customer sending money in the opposite direction.
Funds are deposited into your recipient’s bank account, and you’re both notified by email when the transfer is complete.
Who offers lower fees?
XE Money Transfer
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:
- $3 fee for transfers up to $300.
- A fee equal to 1% of the amount you’re sending for transfers of up to $5,000.
- 0.7% on any amount over the initial $5,000.
Other fees apply depending on the amount and type of currency. For example, when transferring $5,000 as Indonesian rupiah, you’re charged an additional $2 on top of the 1% fee.
Use TransferWise’s online pricing calculator to see how much your transfer will cost.
Winner: XE
Although TransferWise typically charges lower fees than banks and other money transfer specialists, it can’t trump XE’s no-fee service.
Our pick: XE Money Transfer
XE specializes in a wide range of foreign currency solutions and offers an affordable solution when you need to send money overseas.
- Send money to 170+ countries.
- Competitive exchange rates that are often better than banks.
- Transfer up to $500,000 online.
- See exchange rates in real-time.
Who 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
You get better rates for your money with the mid-market rate that TransferWise extends for its transfers.
Who’s 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 rave 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.
Who offers more options?
| Payment methods | Minimum and maximum transfers | Delivery methods | Transfer speeds | Countries and currencies | |
|---|---|---|---|---|---|
| XE Money Transfer | Bank transfers only | No minimum transfers. Maximum transfers as high as $500,000 or more by phone | Direct to recipient’s bank account | 1–4 days | 170+ countries |
| TransferWise | Bank transfers, credit or debit card payments, Facebook Messenger, Apple Pay, Android Pay | From $1 to $50,000 daily or $250,000 annually | Direct to recipient’s bank account | 3–5 days | 50+ countries |
Case study: Sending money to Paris
Let’s say you’re looking to transfer $100, $1,000 and $10,000 to your son, who’s studying in the City of Lights. Here’s what you might receive with XE Money Transfer and TransferWise after accounting for transfer fees.
$100: Almost even, XE winning by a nose
| XE Money Transfer | TransferWise | |
|---|---|---|
| Transfer fee | $0 | $3 |
| Exchange rate | 1 USD = 0.845 EUR | 1 USD = 0.855 EUR |
| Transfer speed | 1–4 days | 3–5 days |
| Amount received | 85 EUR | 83 EUR |
With XE, you get two extra euros. At 1 EUR = 1.155 USD, that works out to $2.31.
$1,000: Almost even, TransferWise winning by a nose
| XE Money Transfer | TransferWise | |
|---|---|---|
| Transfer fee | $0 | $10 |
| Exchange rate | 1 USD = 0.845 EUR | 1 USD = 0.856 EUR |
| Transfer speed | 1–4 days | 3–5 days |
| Amount received | 845 EUR | 847 EUR |
With TransferWise, you get two more euros — about another $2.31 or so.
$10,000: This time, TransferWise is a clear winner
| XE Money Transfer | TransferWise | |
|---|---|---|
| Transfer fee | $0 | $85 |
| Exchange rate | 1 USD = 0.845 EUR | 1 USD = 0.856 EUR |
| Transfer speed | 3–5 days | 3–5 days |
| Amount received | 8,453 EUR | 8,483 EUR |
With TransferWise, you get 30 more euros on the exchange rate — or about $35 more.
Winner: TransferWise
The two services are about even for smaller amounts, but TransferWise begins pulling away when you transfer more. TransferWise’s mid-market rate more than makes up for the advantage posed by XE’s no-fee transfers.
Our pick: TransferWise
When you need to send money, benefit from competitive mid-market exchange rates and straightforward fees with TransferWise.
- Fair service fees and mid-market rates — a major market differentiator.
- Next-day delivery to your loved ones and businesses.
- Trusted the world over, with five-star ratings on Trustpilot.
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.
