It’s 2020. Gone are the days of terrible bank rates for international money transfers!
Read on for your best international money transfer options.
XE Money Transfer is one of the older, larger international forex businesses. They’re fast, reliable and secure.
Exchange rates are competitive with no fees.
Most transfers are completed in a day, but can take up to four.
Secure online platform available all day, every day.
It doesn’t face the same centralized control as traditional money transfer systems - ideal for those who want control, as you don’t have to put your trust in a company. You can buy bitcoin on one exchange in one country, and sell it in another.
Note the same coin can be trading at different prices on different exchanges, meaning there are arbitrage opportunities that could work in your favor, but also against you.
Transfers are quicker on busier exchanges. It can take as little as minutes!
There are no limits to how much Bitcoin you can transfer and you can send it anywhere in the world. You can make transfers that could be blocked by traditional systems - like to sanctioned countries.
*This is a great system for those familiar with trading Bitcoin. Its drawback is typing in a 34 character address each time you transfer. This can’t be reversed if you get it wrong - so it’s best to read up on how it all works before getting too far into it.
Make sure you hold your coins in a secure wallet too.
Transferwise is the low-fee peer-to-peer currency specialist.
Some of the best exchange rates on the market.
They have low up-front fees (usually <1%), although they’re larger for higher sums (<US$10,000).
Fees depend on the currency. For example, if you’re transferring from the US, it’s $1.09 flat fee plus another 0.45% for transfers up to $135,000 or 0.35% for amounts above that. You’ll see the exact amount upon completing the transfer.
It’s cheap because you never actually transfer money. Transferwise has reserves of cash in many countries. So you pay into the USA pot, and your mate gets paid out of the UK pot. Or the Rupiah pot in Indonesia!
Same day delivery is possible, but can be up to four.
They have a great mobile app and easy-to-use FAQs on their website - although phone line support is only on weekdays.
Western Union is a popular choice for sending money to family and friends but it can be more expensive for international money transfers.
Costs vary - they’re usually 1-6% depending on the destination and can be less than $5 for transfers up to $1,000.
Same-day delivery is possible. The cheapest transfers require bank accounts and can take over a week.
Limits depend on the destination country - for example, you can send $5,000 to Mexico but up to $50,000 to India. Limits also depend on your transaction history and the payment route. Some states also have their own limits.
Transfers can be made with cash, bank account, and debit or credit cards.
Exchange rates and transfer fees tend to be quite high.
Fees depend on where you’re sending the money and how you’re funding the transfer. It’s usually a 0.3-2% charge. Using PayPal credit or your debit or credit card adds a 3.4-3.9% fee, plus a small fixed fee depending on the currency. There’s also a currency conversion spread between 2.5-3%.
Paypal is good for small transfers, but expensive for anything north of a few hundred USD. Very small transfers are expensive because of the fixed fees. So there may be a sweet spot in the middle, but it’s not thaaat sweet.
It can take up to five business days.
*You can make payments in 200 countries and 25 currencies.
*Transfers of $60,000 in up to $10,000 installments can be made by bank account, cash pickup or delivery, mobile top-up, and bill payments.
The customer experience may be worth the price. All you need is the recipient’s email address and bank or card details.
Paypal has a new system called Xoom which can be used for some international money transfer services. It’s easy to set up with your PayPal credentials for sending money to non-PayPal recipients.