Internatinal Money Transfer

International Money Transfer: How to Save Money Transfering Funds Across Borders

How to Make a Cost-Effective International Money Transfer?

The following is a guest post from Jon of

You no longer have to rely on a bank or a high street forex broker to make an international money transfer. This is because a number of FinTech players have entered the international transfer and remittance market in the last couple of decades. Through them, people now have quicker and money-saving ways to transfer funds internationally. However, you need to pay attention to different factors if you hope to save money on transferring funds.

What You Need to Know About International Money Transfers

Exchange Rate and Fees

Exchange rates you get to see on Google and Yahoo Finance are referred to as interbank rates or mid-market rates. These are rates at which banks lend and borrow money in the interbank market, and also the rate at which they carry out wholesale forex trades.

More often than not, overseas money transfer companies add markups to existing interbank rates, and the markups may vary from one service provider to the next. Some, such as TransferWise and InstaReM, process transfers using prevailing interbank rates.

While most overseas money transfer companies charge transfer fees, there are some that provide fee-free transfers. However, the exchange rate you get also has a bearing on the cost of your transfer. An easy way to determine which service provider scores best on this front is to simply look at how much money the recipient stands to receive at the end of the process.

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Payment Method

How you will pay for your transfer tends to have an effect on how much you pay in transfer fees. For instance, if you live in the U.S., paying for your transfer via a bank debit (ACH) would be the most cost-effective. A wire transfer might end up costing slightly more. While paying using a debit card usually comes with the highest fee, making a credit card payment is the most expensive.

Consider this example where one uses the services of a popular overseas money transfer company to send $1,000 from the U.S. to the UK.

Payment MethodFee
Bank debit (ACH)$2.00
Wire transfer$5.34
Debit card$7.44
Credit card$32.88


Transfer Method

The most cost-effective method to send money overseas is to transfer it directly to the recipient’s bank account. Companies such as WorldFirst, OFX, TransferWise, TorFX, and XE give you easy means to do this.

If you use the services of a company such as PayPal, the recipient ends up paying a fee to receive the money, and then to withdraw the money into a local bank account.

If you wish to send money in a hurry or if the recipient does not have a local bank account, you may consider sending money to a cash pickup location.

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However, you would end up paying a higher fee when compared to sending money directly to a bank account. Some companies that have extensive agent networks include Western Union, MoneyGram, WorldRemit, and Ria.



Sending money overseas is not difficult and you do not have to end up paying steep fees. All you need to do to make cost-effective transfers is to pay attention to aspects such as exchange rates and fees while selecting suitable payment and transfer methods. Access to promotional coupons may lead to added savings.


Author Bio

Jon works as a researcher with icomparefx. This website gives its readers an easy means to compare the world’s top overseas money transfer companies across different parameters. Outside of work, Jon likes cycling and listening to music.

About the Author

Michael launched Your Money Geek to make personal finance fun. He has worked in personal finance for over 20 years, helping families reduce taxes, increase their income, and save for retirement. Michael is passionate about personal finance, side hustles, and all things geeky.

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