What Are the Best Ways to Transfer Money Internationally?

Whether you’ll be making a number of international money transfers or it’s a one-time transaction, it’s important to know the best ways to send money internationally. Maybe you need to put down a deposit for a vacation rental, send money to family living abroad or make a foreign purchase. Whatever the case, you have several options for sending money internationally. From Western Union to your personal bank, the post office or online services, it’s important to compare fees, transfer minimums and currency exchange rates. Before sending money, this is what you need to know about the best ways to transfer money internationally.

A financial advisor can help you create a financial plan with your goals in mind.

In-Person International Money Transfer Services

If you need to send the payment in cash or need it delivered in cash quickly and in person, money transfer operators like Western Union and MoneyGram are the best options for you. Money transfer operators offer the convenience of allowing the recipient to pick up cash at any of the operator’s locations.

Western Union

Western Union is the household name for money transfers and for good reason. With hundreds of thousands of locations in over 200 countries, Western Union is everywhere. They enable users to send money to any Western Union location within minutes or to a bank account in a few days. Money transfers can be made in person, at a location, through the mobile app or online with a credit card, debit card or bank account. 

Western Union’s convenience comes at a cost, however. Its fees can be very high, sometimes as much as 10% of the amount being sent, and its exchange rates are marked up significantly.

MoneyGram

MoneyGram is Western Union’s closest rival. It has over 440,000 locations in over 200 countries and offers transfer services within the hour. MoneyGram also allows transfers in person, via the mobile app or online with a credit card, debit card or bank account. Its fees tend to be on par with Western Union’s.

Other Local Options for Money Transfers

Your bank also offers international money transfer services but at a high cost. Wire transfer fees can cost up to $60 with an additional markup on the exchange rate. While heading to your bank may seem like the most convenient way to send money, it will not do your wallet any favors as one of the most expensive options.

Online International Money Transfer Services

Nowadays, there are also online international money transfer services as an alternative to brick-and-mortar stores. In exchange for an actual location, these services offer lower fees and better exchange rates.

Wise

Wise (formerly TransferWise) offers transfer services between 215 countries. It promises no hidden fees, with a fee structure consisting of a percentage of the amount you send and a small flat transaction fee. You can send money from your checking account, debit card or credit card, although credit cards incur a higher fee. Wise offers delivery times from within a few hours to a few days, depending on where the money is being sent.

Xoom by PayPal

Xoom by PayPal charges a fee that depends on each country, payment method, transfer amount, currency selection and receiving option. There is typically a higher fee on credit card and debit card transfers and markups on mid-market exchange rates. Xoom delivers money in minutes to over 160 countries, with cash pickup available in certain countries from local banks. It even offers home delivery in some countries, allowing you to literally send money to your recipient’s door.

OFX

OFX serves over 170 countries in more than 50 different currencies. Uniquely, OFX does not charge its own fees for money transfers. There is an exchange rate markup that varies by country. You can snag even better introductory exchange rates by signing up for OFX and sending money using one of seven currencies. As a sender, you must transfer at least $1,000 per individual transaction. Delivery can be as soon as the same day.

What Are the Best Places to Transfer Money Internationally?

Western Union provides the best option for those who want to send straight cash and have the abroad recipient receive that cash within minutes. Plus, no other service has as many locations as Western Union, offering thousands of locations in over 200 countries for the most convenience. 

Just be sure to double-check the fees you might face. If the fees take too large of a chunk out of your funds, you may want to turn to an online service instead.

If you are looking for low fees and a low minimum transfer amount, look to OFX. This service will not charge you a transfer fee of its own. Plus, it boasts much lower exchange rates than most banks and other transfer services. You cannot, however, send money to be picked up as cash, limiting you to bank account transfers.

Wise provides another solid online option with its mid-market exchange rates and no markup. Just be careful of its fees, especially when sending larger amounts.

Fee Comparison by International Transfer Service

These charts compare the costs of sending money to Australia, China and Mexico. We have included popular international money transfer options and their fees. We have also given an example transfer amount of $100 to $1,000 to help determine the fee amounts. 

Just don’t forget that exchange rates and fees are constantly changing, so these figures may look different when you go to make your own transfer.

Bottom Line

Next time you need to send an international money transfer, take a moment before heading to your bank. Doing so can save you a ton in fees. You can also find a service that is much faster than your bank, like Xoom by Paypal. Always pay attention to the fees each service charges. Be sure to also take advantage of the calculators provided by each money transfer service to get more accurate fee and total estimates.

You can also consider working with a financial advisor to determine the best way to manage your money moving forward.

Tips for Managing Your Money Safely

• You can also get professional help from managing your money. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Within today’s technology-heavy world, there are a number of risks that come with sending money especially online. Even some of the best ways to transfer money can be tricky since many of these methods are pretty final. This makes it so important to know exactly who and where you’re sending your money before it’s gone.
• A big part of managing your money safely is ensuring it’s insured and locked away from prying eyes and hands. This means placing your money not only in a checking account, but a savings account, as well. Having a savings account can help prevent you from spending all your money too easily. Plus, it grows by earning interest which can help you in case of emergency.

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