Best Way to Transfer Money Internationally

Pros

• Low fees

• Competitive exchange rates

• Fast

• Regulated

Cons

• Weak customer service

• Limited reach

• Low caps

• Hidden fees

Online money transfer services are generally the cheapest way to send money abroad, but they are by no means free. Here’s a list of the types of costs associated with such operators:

• Transfer fees: Operators may require a transfer fee to move your funds to another country. These types of fees can either be fixed or a percentage markup.

• Exchange rate markup: Some operators add a profit margin on top of the exchange rates and typically ask for no other transaction fees.

• Additional fees: Some payment methods, like bank deposits or credit cards, may add on extra fees.

Payments below a certain limit can take anywhere between a few minutes and three working days, and this will depend on the transfer type.

Some operators, like TransferGo, may ask for a small fee to speed up the process — it’s generally not wildly different from the regular fixed fee. Delivery times with wire transfers are also comparable to that of money transfer services, but they come at a higher cost.

Valued at $15 billion and growing at an impressive pace, the global digital remittance market is having its heyday. Here is a list of top platforms leading the way.

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Rating

	Name	Score	Visit	Support	Mobile	Security	Launch Date	Disclaimer
	1Wise Read Expert Review	9.2	Visitwise.com	Phone	Android, iOS, Web App	2FA, Biometrics	2010
	2TorFx	8.9	Visittorfx.com	Dedicated Account Manager, Email, Phone	iOS, Android, Web App	PIN	2004
	3Currencies Direct	8.9	Visitcurrenciesdirect.com	Phone, Email, Dedicated Account Manager	Android, iOS, Web App	PIN	1996
	4Instarem	8.1	Visitinstarem.com	Email, Live Chat	Android, iOS, Web App	Biometrics, PIN	2014
	5Remitly	7.7	Visitremitly.com	Email, Live Chat, Phone	Android, iOS, Web App	PIN, Biometrics	2011
	6OFX	8.2	Visitofx.com	Email, Phone	Android, iOS	2FA, Biometrics, PIN	1998
	7CurrencyFair	8.0	Visitcurrencyfair.com	Email, Phone	Android, iOS	2FA	2010
	8TransferGo	7.3	Visit	Email, Phone	Android, iOS	2FA	2012
	9Key Currency	8.4	Visitkeycurrency.co.uk	Phone, Email	Web App	PIN	2015
	10PayPal	7.2	Visitpaypal.com	SMS, Phone, Live Chat, Email	Android, iOS, Web App	2FA, Biometrics, PIN	2000
	11Western Union	6.5	Visitwesternunion.com	Email, Live Chat	Android, iOS	2FA	1871
	12MoneyGram	7.0	Visitmoneygram.com	Email, Phone, Live Chat	Android, iOS	2FA, Biometrics	1988

The selection above offers the most competitive exchange rates, costs, and delivery times across the market.

While it differs depending on the transfer type and operator, the demands are usually similar. Here’s a generalized list of information you may need to submit:

• A photo ID.

• An email address.

• Proof of address.

• Bank account information,

• The recipient’s name, number, and bank details.

Pros

• Personalized customer service

• Cheap on large transfers

• Legal help

• Specialized services

Cons

• Costly for small transfers

• Client bias

• Hidden fees

• Delayed transfers

Currency brokers tend to have a similar fee structure as money transfer providers — but many go with a no-fee policy and add an exchange rate markup instead. This makes it more favorable for larger transfers.

To measure performance, it is best to get a few quotes from different firms and see how they stack up against each other.

This will largely depend on the size and reason for your transfer. Assuming that it is a large sum transferred for purposes like inheritance, investing in a company, or emigration; the sender will need to submit all relevant documents and satisfy a compliance team. As long as clients submit documents promptly, brokers usually stick to a specified timeline.

Much like money transfer providers, there is high competition among currency brokers. Here’s a list of top contenders.

Not only do these operators offer a no-fee policy, but they also come with superior customer service and competitive exchange rates.

As currency brokers generally deal with larger transfers, they may require more information beyond basic personal details. These would typically include;

• A photo ID.

• An email address and phone number.

• Proof of address.

• Proof of employment.

• Letter from an attorney, accountant, or employer.

Pros

• High safety

• Fast

• Cash pickup options

• Global reach

Cons

• High fees

• Poor exchange rates

• Transaction caps

• Non-reversible

Banks charge for both outgoing and incoming wire transfers, with fees ranging from $15 to $50. On top of the flat fee, customers usually get a much poorer exchange rate compared to remittance companies and currency brokers.

If you can arrange the transfer yourself online instead of going to a branch or on the phone, you may save up an extra $10 charge. Senders can also convert their money elsewhere to avoid poor exchange rates.

While domestic transfers can be completed on the same day, international wire transfers typically take between 1 to 5 business days. In extreme cases, transfers can longer due to human error or system failure.

There are two options for wire transfers:

• Bank-to-bank transfers: You can arrange bank-to-bank transfers in person at your bank’s local branch, on the phone, or through the online bank account.

• Wire transfer services: You’ll need to contact the specific wire transfer service to learn about their process. You may cash in with these services, but you will have to visit a branch in person and fill out a form.

Bank and wire service may require the following information based on the service you choose;

• A photo ID.

• Sender’s full name and contact information.

• Bank account and transit number.

• Name and contact information of the recipient.

• Recipient’s bank account details and transit number.

Pros

• Safe

• Convenient

• Customer service

• Transfer 24/7

Cons

• Unfavorable exchange rates

• Costly

• Long transfer times

• Fees for both ends

Bank transfers are usually the costliest option to send funds abroad. Like brokers or money transfer services, banks may also ask for a flat fee or a percentage markup on your transfer. The flat fees can go as high as $50, while the rate can go up to 5-6%. There may be fees cut both from the sender and the receiver, and the exchange rate is notoriously poor.

You may minimize the fees if your bank has a branch at the destination. If you would like to know how to send money to different countries or destinations, please check out the following guides:

• How to send money to UK

• How to send money to Colombia

• How to send money to Canada

• How to send money to Spain

Bank transfers usually take between 1-5 business days. Due to the long and tedious security checks that come with the SWIFT system, bank transfers are typically the slowest way to transfer money abroad.

If you don’t already have one, you will need to apply for a bank account. If you do have one, you can arrange an international transfer via your online account, over the phone, or by visiting your local branch.

As your bank already have your personal details, you will only need your recipient’s details for your transfer.

• Recipient’s name and contact information,

• Recipient’s IBAN and BIC.

• Name and address of the recipient’s bank.

• Reason for your payment.

Pros

• Multi-currency debit card

• Quick

• Convenient apps

• Prompt customer service

Cons

• High fees

• Unfavorable exchange rates

• Digital-only

• Problems with data privacy

As digital-only entities, challenger banks are able to compete with their long-established counterparts as they can offer services at a low-cost, but it's not the case for international transfers. There are options of fixed fee and percentage markup — which can go up to 4%. The exchange rates are typically less than ideal.

Challenger banks are convenient and get the job done very quickly. Your transfer may reach the recipient on the same day, if not in minutes, though you may have to wait longer for exotic currencies or large sums.

Neobanks market is quite vibrant, with new options popping up regularly. Here’s a list of leading names today.

Regulated by leading institutions, the selection above makes up the safest and cheapest options in the market.

Similar to banks, you will only need your recipient’s details to conduct your transfer, these would include;

• Recipient’s full name and contact information,

• Recipient’s address,

• The recipient’s IBAN and BIC (bank code)

• Name and address of the recipient’s bank.

Pros

• Convenient

• Transfers on the go

• Instant notifications

• Quick deposit options

Cons

• Weak customer service

• Occasional bugs

• Security breach

• Low caps

Money transfer apps have the same types of fee structures and additional costs as remittance companies and currency brokers — which include fixed fees, percentage markups, and exchange rate markups.

In spite of there exist instant money transfers, these transfer times depend on the choice of transfer type. Here are the most common transfer types supported by money transfer apps:

• Bank transfer: If providers have contracts with the banks used, transfers can take between 1-3 working days.

• Cash pickup: Cash is generally ready to collect within minutes, or a couple of hours.

• Mobile wallet: Some apps support mobile wallets from which the recipient can withdraw the money — transfer to the wallet typically takes minutes.

There are many firms aiming to unseat the services of Apple Pay and Google Pay. Here are the best contenders.

The apps above have near-perfect user feedback due to their easy navigation and attractive interface.

While there are apps that only require contact information, some may require further proof of identity. Here’s a generalized list of requirements;

• A photo ID.

• An email address and phone number.

• Bank account information.

• The recipient’s name, number, and bank details.

Pros

• Fast

• Easy to use

• Widespread use

• Extra security measures

Cons

• Costly

• Unfavorable exchange rates

• Lenghty verification for sellers

• Delayed refunds

PayPal imposes three forms of fees on international transfers. Besides the fixed and percentage markup, there’s also a 4% exchange rate markup when there’s currency conversion is involved.

PayPal transfers are notoriously fast, with most taking only minutes. If you are buying through PayPal from an unverified seller it may take longer as they need further verification.

PayPal now requires proof of identity along with contact information,

• A photo ID,

• Bank details,

• An email address and phone number,

• Recipient details.

Pros

• Speedy delivery

• Accessible

• No bank fees

• Safe

Cons

• Additional costs

• Depends on local availability

• Non-reversible

• Low caps

Services typically add an additional cost for cash pickups, but it tends to be quite modest, ranging from $2 to $10. The exchange rate markup varies by provider. If you are cashing in the transfer you’ll be avoiding any unexpected bank fees.

Cash transfers now take only a couple of hours, if not minutes, depending on the amount and local availability.

You will only need a few details for a cash transfer,

• A photo ID.

• Address and phone number.

• The recipient’s name, address, and phone number.

Pros

• Convenient

• Accessible

• No need for bank account

• No chance of bouncing

Cons

• Mail can get lost

• Long waiting times

• Low caps

• Potential recipient fees

The fixed fees are significantly higher than domestic orders, and may go up to $10. The exchange markup is also comparable to that of high street banks, hovering around 2%-10% of the total transfer amount.

If you still wish to send cash, high street services or providers with cash delivery features may offer more competitive costs.

International money orders are usually mailed to the recipient, so the transfer times largely depend on the countries involved. On average, it takes 2-3 working days.

Much like cash transfers, you only need a few details for this method,

• A photo ID.

• Address and phone number.

• Name of your recipient.

• The recipient’s address and phone number.

Pros

• Human touch

• Safe

• No need for a bank account

• Fast

Cons

• Low caps

• Poor exchange rates

• Less chance to compare the rates

• Limited availability

Varying from service to service, there are usually fixed fees involved. While some services keep their fixed fees as low as $2, they usually give poor exchange rates.

Depending on the countries involved and the amount, the cash can be ready for collection within half an hour. Your chosen service may offer an express service for an additional fee.

The information you need will depend on your chosen payment method,

• A photo ID.

• The sender’s phone number and address.

• The sender’s bank details.

• The recipient’s name, phone number, and address.

Unlike local transfer stores, operators listed above have an impressive global reach — senders can conveniently choose from many local destinations.