Most times, you’d want to send money abroad, probably to support a family, or pay for services, or you simply want to move funds between your accounts in different countries – whichever is the case, the process isn’t as big a deal as you imagined. It all boils down to choosing the proper method to work with. Of course, this doesn’t include using your bank, as that’s the most expensive route. You probably have noticed that they charge high fees, and the exchange rates are unreasonable, too.
If you have been looking for the best way to send money internationally, try Xoom, Western Union, or MoneyGram. We explored them in detail here, including how they work, their exchange rates, and tips for safely transferring money abroad. The goal is to send money smartly, not blindly.
What is an International Money Transfer?
To put it simply, international money transfer is the process of moving money from your account in one country, like the United Kingdom, to an account in a different country. It could be that you’re wiring funds to your family or handling international business payments. An international money transfer helps you send money abroad or safely across borders.
How Does an International Money Transfer Work?
Transferring money internationally between banks isn’t the same as just sending cash to a friend down the street. To send money internationally, first, be aware of the two required charges.
One is the most obvious, which is called “The Fee.” It’s a small percentage or flat fee charged by most money transfer services. Although you’d see some services advertise themselves as “Fee-free,” don’t be carried away. If they are not charging any fee, they’re probably making up the difference somewhere else, usually with a poor exchange rate.
The second fee is called “The Exchange rate.” It gets tricky here because some services aren’t transparent about their exact rates upfront, making it hard to tell how much you’re really getting. But to get past this confusion, always ask yourself, “After all charges, how much foreign currency will I get for a pound sterling?” This simple question helps you cut through the noise so you get a clearer picture of what you’re getting into.
Also, bear in mind that exchange rates are constantly changing. Endeavour to always compare your options at the same time. Also, some transfer services might deliver your money in a few days, while others take hours. Just remember that speed usually comes at a higher cost.
Now, let’s go ahead and explore the best ways to send money internationally.
5 Best Ways to Send Money Internationally
Western Union
Western Union is the best way to transfer money abroad and a classic choice. The platform is classic because it has been around for decades and is currently one of the largest international networks. It’s worth checking out, especially if you want a reliable and credible option.
- Coverage: Interestingly, Western Union works in over 200 countries with more than 500,000 agent locations worldwide.
- Transfer Fees: It varies depending on the amount you’re sending, the payment method, and delivery option, whether cash pickup or bank deposit. But a cash transfer of $1,000 can cost less than $5, with an increase if you want a faster delivery or pay with certain methods. A useful tip here when using international money transfer online services is to always check the total amount the recipient will get after fees and exchange rates are deducted.
- Transfer Speed: Could be same-day delivery or bank transfers/economy. Same-day delivery is possible for cash pickup when using debit/credit cards or paying in person. Bank transfers or economy options usually take up to one week, but that’s dependent on where the money is going and the payment method used.
- Transfer Limit: This depends on location. For example, up to $5,000 can be sent to Mexico and $50,000 to India. Funds can be received through cash pickup, bank deposit, or mobile wallet.
Finally, if you need help navigating their platform, there’s a 24/7 live chat and phone support to rely on.
MoneyGram
MoneyGram stands out as one of the best ways to transfer money abroad, particularly if you desire to set up recurring international payments. First, the global network is massive, plus it offers different payment options, which makes sending money a breeze.
- Coverage: MoneyGram’s services can be accessed in over 200 countries. So, it doesn’t matter whether you’re sending money to a big city or a remote town; there’s a high chance MoneyGram can get it there.
- Transfer Fee: When you’re sending with your debit card, there’s usually no fee incurred. However, other payment methods like a bank account, credit card, or cash come with higher fees. Aside from that, the exchange rate hovers above 2%, and that can eat into the overall amount the recipient gets.
- Transfer Speed: Thankfully, most transfers are completed within the same day, and it doesn’t matter which funding method you used. Although factors like destination country and local banking hours sometimes cause delays.
- Transfer Limits: For online transfers, you’re only allowed $5,000 per transaction.
The payment or delivery options available include cash pickup, bank account deposits, and mobile wallet payments. You can also fund your transfers with debit or credit cards, Apple Pay, or even cash at physical locations.
One of the features that stands out with MoneyGram is its ability to schedule recurring transfers. So, you can use it for regular payments like tuition, rent, or family support.
You can either use the official website or the mobile app to initiate and manage your transfers. Overall, MoneyGram is a great choice for anyone looking for how to send money overseas with flexibility and control.
Xoom
If you’re running short of time and need to quickly get some cash across, Xoom, which is a PayPal service, is the best way to send money overseas. It boasts fast delivery times, easy funding options, and a user-friendly platform.
- Coverage: The platform supports transfers from the U.S to almost 160 countries.
- Transfer Fees: Xoom offers low upfront fees, especially if you’re funding the transfer with your PayPal or bank account. Sometimes the fee is as low as $0. However, using debit or credit cards attracts a cost. The exchange rate, on the other hand, can be up to 3%, but even with these costs, Xoom is still generally cheaper than traditional banks’ international wire transfer fees.
- Transfer Speed: Regardless of how you fund the transfer, the money arrives within minutes. However, factors like banking hours, recipient country, and time zones can get in the way sometimes.
- Transfer Limits: $50,000 daily, but that depends on verification and country-specific rules.
- Xoom’s cash delivery options include bank deposits, cash pickups at partner locations like supermarkets, and mobile wallet delivery in some regions.
If you need help, phone support is available in multiple languages from 9 a.m. to 9 p.m., along with email assistance.
OFX
For those looking for a more budget-friendly option, skipping the extra fees, OFX is the best way to transfer money internationally. It also works for larger transfers between bank accounts.
- Coverage: OFX works in over 170 countries worldwide.
- Transfer Fees: Zero transfer fees regardless of how much you send. However, bear in mind the exchange rate ranges from 1.35% to 4.50% depending on the currency pair and market conditions.
- Transfer Speed: Same-day delivery is not available from the U.S. So, typically, OFX receives your transfer within half a business day and funds your recipient within 1 to 3 business days, depending on the country.
- Transfer Limit: The minimum transfer you can make is $150. There’s no maximum transfer limit, so at least you can use it for high-value transactions.
That said, the only transfer option available in OFX is bank-to-bank transfers only. You can’t fund payments with cash or your debit or credit card.
Wise
Wise is one of the top picks for international money transfer online because of its transparency, speed, and high sending limits.
- Coverage: Wise supports money transfers from the U.S to over 70 countries. Although the number is quite limited compared to other platforms, the major global destinations are covered.
- Transfer Fees: Wise uses the mid-market exchange rate, which is the same as the one you see on Google or Reuters. The upfront fees are also clearly stated, and they usually fall under 1% of the transfer amount. However, that’s if you’re funding from a bank account.
- Transfer Speed: In some countries, funds can be received the same day. The debit and credit card payments arrive within seconds, whereas the bank account-funded transfers take a few seconds to 2 business days, depending on the destination country and local banking hours.
- Transfer Limits: With Wise, you can only transfer up to $1 million at once when using an ACH transfer. But if you’re funding the transfer through your Wise account balance in USD, then you’re allowed to send up to $6 million.
Some of the payment methods available include bank account, debit/credit card, Apple Pay, Google Pay, and ACH. However, ensure that the person receiving the money has a bank account with Wise, as the platform doesn’t support cash pickups.
What is the Cheapest Way to Transfer Money Internationally
The golden question people always ask: What is the best way to transfer money internationally without paying a fortune in fees or losing out on poor exchange rates?
Well, it depends. There’s truly no one-size-fits-all answer because it comes down to how much you’re sending, the route you’re taking, where the money is going, and how fast you need it to arrive.
However, a suggestion for the cheapest way to transfer money internationally is through transfers to one country. This only works if you’re sending money overseas regularly and the international bank accounts are linked.
Some banks like HSBC and Danske offer fee-free transfers between accounts within their network. While HSBC offers free transfers between accounts in over 150 countries, Danske Bank works well for Scandinavian countries.
Now, if you’re making a one-time transfer under $5,000, then apps like Wise and Xoom are great options. For larger amounts over $5,000, use OFX as they don’t charge any fees.
Considerations for sending money abroad
Now, choosing the best way to transfer money internationally from the UK isn’t just about picking the popular app or bank. It’s about strategy and ensuring your money actually gets to the destination smoothly without sinking under the weight of hidden fees or bad exchange rates. So, what and what do you need to consider? Here they are:
- Understand how exchange rates work:Exchange rates can be tricky, and most platforms aren’t usually clear on their rates. To decide better, always look at how much foreign currency your recipient will receive from your transfer. If they get more, it means the exchange rate is good.
- Transfer limits:Fund transfer services have minimum or maximum amounts one can send per day, week, or even month. So, always check this to ensure it’s within the sum you want to send.
- Timing:Also, consider when you need the money to arrive. That will determine whether you’d transfer with a credit/debit card, a bank account, or a mobile wallet if it’s available.
- Country Availability:Now, not every service works everywhere. Some specialize in certain regions while others have wider global coverage. So, check to be sure that the destination country is supported on the platform.
Tips for Safely Sending Money Abroad
For safe international money transfers, pay attention to these tips:
- Choose the service that fits your needs. Some, like Wise, are faster, while others, like OFX, are more affordable.
- Always check the exchange rates as they vary between providers. No matter how small a fee is, it can impact large transfers.
- Try not to initiate transfers on weekends or public holidays, both in your country and the recipient’s country. At least, if issues arise midway, it can quickly be settled within hours rather than waiting for the next business day.
- Always double-check recipient information. Incorrect details can delay your transfer or, worst-case scenario, you send the money to the wrong account.
- Finally, don’t send cash in the mail. It can’t be traced and can also be unsafe. Use secure transfer platforms like Wise, MoneyGram, Western Union, OFX, and many others.
Conclusion
As you have seen, sending money abroad isn’t that much of a headache. The trick to choosing the best way to send money internationally is just to pick a favorable method after considering factors like the service’s country availability, transfer limit, timing, and exchange rate. It’s about doing it smartly, affordably, and stress-free.
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FAQ on the Best Way to Send Money Overseas
How to wire money using the Wise app?
It’s easy to wire money using the Wise app. Just tap “Send” on the Home screen, select or add a recipient, enter the amount, and choose your payment method. Then, review the details and confirm. In seconds, your international money transfer will be on its way.
Which is the best international money transfer app?
It depends on your needs. PayPal is a popular choice for the best international money transfer app since it supports over 200 countries. Although the fees differ and are often higher for international transfers. However, transfers are swift and securely done.
What is the best way to transfer cash internationally?
The best way to transfer cash internationally is to use online money transfer platforms like Wise, Xoom, Western Union, OFX, and MoneyGram, which are affordable, fast, and secure.
What is the cheapest way to move money internationally?
You should use platforms like Wise or Xe as they typically provide better exchange rates plus lower fees compared to traditional banks.
How to send money abroad for free?
Use money transfer services like OFX because they offer fee-free transfers and also route payments through local bank networks. This helps to avoid international transaction fees.
How do I avoid fees when sending money internationally?
The best thing to do is to compare different services and see the one with the best exchange rates and lowest fees. You can also use online comparison tools and look into services specialized in low-cost international transfers.
Can I use Zelle to send money abroad?
No, Zelle doesn’t support international money transfer because both the sender and receiver must have U.S phone numbers and bank accounts. So, the platform only works within the United States. To make an international transfer, use services like Wise, Xoom, or Western Union.
