How to Send Money Overseas: The Complete Guide to International Transfers
Sending money overseas is one of the most common financial transactions in the world, yet most people are paying far more than they should. Whether you are making a one-off overseas money transfer to cover a bill abroad or sending money regularly to family back home, the difference between a good provider and a bad one can amount to hundreds of pounds or dollars a year. This guide covers everything you need to know about how to send money overseas: what it actually costs, which services are genuinely worth using, and how to make sure your recipient gets as much as possible.
The key to finding the cheapest way to send money internationally is understanding that the price you pay is not just the fee. Most banks and some transfer apps quietly add a margin on top of the real mid-market exchange rate. That hidden markup is often where the biggest costs live, far outweighing any disclosed transfer fee. This guide explains how to compare international money transfer providers on total cost rather than just the headline number they advertise.
Below, you will find a breakdown of the best way to send money overseas for different situations, a step-by-step guide to sending money abroad online, a full comparison of leading providers, and answers to the most common questions people have before making an international transfer. Use the live comparison tool immediately below to see real rates for your specific route right now.
How International Money Transfers Work
When you initiate an international money transfer, your provider converts your home currency into the recipient's currency using an exchange rate, then delivers the converted amount to their bank account or mobile wallet. What looks like a simple two-step process actually involves several infrastructure layers, and each one carries a cost that may or may not be visible to you.
Traditional bank-to-bank transfers move through the SWIFT messaging network, routing payments through a chain of correspondent banks. Each correspondent bank may deduct a small processing fee, transfers take several business days to complete, and the exchange rates applied are rarely competitive. Specialist money transfer services work differently. Many use a matching model: instead of physically moving money across borders, they match your deposit with funds going in the opposite direction and settle locally on both ends. This is how they achieve lower costs and faster delivery on most international corridors.
Every overseas money transfer has two cost components. The first is the transfer fee, which appears on your receipt. The second is the exchange rate margin, the difference between the real mid-market rate and the rate your provider actually applies. Understanding both is essential if you want to find the genuinely cheapest way to send money internationally rather than just the service with the lowest advertised number.
The Best Ways to Send Money Overseas
The best way to send money overseas depends on where you are sending, how much, and how quickly your recipient needs to receive it. There are four main routes, each with different trade-offs on cost, speed, and convenience. Knowing which route suits your situation is the first step toward getting a better deal.
Specialist Money Transfer Services
Purpose-built international money transfer services such as Wise, Remitly, and Xe are generally the cheapest and fastest option for most people. They compete aggressively on exchange rates, disclose their fees upfront, and support hundreds of corridors. Most have mobile apps, fast digital onboarding, and real-time transfer tracking. For anyone asking what the best way to send money overseas is, a specialist service is almost always the answer. Setup typically takes under 15 minutes and the cost savings begin on the very first transfer.
Bank International Wire Transfers
All major banks support international wire transfers via the SWIFT network. The advantage is convenience: you already have an account and do not need to sign up anywhere new. The disadvantage is cost. Banks typically charge a fixed transfer fee of between 15 and 40 pounds per transaction and apply an exchange rate margin of 2% to 5% on top of the mid-market rate. On a 1,000 pound transfer, the total cost to the sender can easily exceed 50 pounds. For an occasional small transfer where cost is secondary to convenience, a bank wire is acceptable. For anything regular or large, cheap international money transfer services are far better value.
Digital Wallets and Payment Apps
Apps like PayPal can handle small international transfers, particularly between people who already use the platform. However, their exchange rates for cross-border payments are rarely competitive, and percentage fees on international transactions can be significant. They are best reserved for very small amounts or situations where the recipient has no other practical way to receive funds digitally.
Cash Pickup Services
For recipients in regions with limited banking infrastructure, cash pickup services remain an important option. Western Union and MoneyGram maintain agent networks across Africa, Asia, Latin America, and Eastern Europe where recipients can collect cash using a reference code and a government-issued ID. Costs are typically higher than digital routes, but they serve corridors and populations that digital transfers cannot reach. For anyone sending money to rural areas or countries with low banking penetration, this is a legitimate and sometimes essential option.
The Cheapest Way to Send Money Internationally
The cheapest way to send money internationally is consistently to use a specialist transfer service rather than a bank. But cost varies significantly even within that category. The only reliable way to compare is to calculate the total cost: the transfer fee plus the value lost to the exchange rate margin. Looking at the fee alone gives you an incomplete and sometimes misleading picture.
The exchange rate margin is the difference between the mid-market rate, which is the real interbank rate you can look up on Google or a currency data service, and the rate your provider actually uses. If the mid-market rate is 1.17 EUR per pound and your provider uses 1.13, you are losing 3.4% to the rate margin before any fees. On a 5,000 pound transfer, that is 170 pounds in hidden cost. Understanding this is the core of finding a cheap international money transfer.
Provider | Transfer Fee | Rate Margin | Approx. Total Cost on GBP 1,000 |
|---|---|---|---|
Wise | ~0.5% | None (mid-market) | ~GBP 5 |
Remitly | Variable | Competitive | Variable (low) |
Xe | Variable | Competitive | Variable (low) |
High-street bank | GBP 20-35 flat | 2-4% | GBP 40-75+ |
For a cheap international money transfer on most major corridors, Wise is typically the most cost-transparent option due to its mid-market rate policy and clearly disclosed fees. Remitly is often the best pick for remittance routes to South and Southeast Asia, Africa, and Latin America. Xe is competitive for both personal and business transfers, particularly for larger amounts where its exchange rate strength delivers the most value.
When sending large amounts internationally, the exchange rate margin becomes more important than the transfer fee. A 1% difference in rate on a 20,000 pound transfer costs 200 pounds. Prioritise the rate over the fee for anything above 5,000 pounds, and always calculate the final received amount rather than comparing headline charges in isolation.
The Best International Money Transfer Services
The three providers below represent the strongest options for most international money transfer use cases. They are all fully regulated, widely available, and consistently reviewed as top choices for how to send money overseas. Each suits slightly different situations, and understanding those differences helps you pick the right one for your transfer.
Wise
Wise is one of the most transparent platforms for international money transfers. It charges a small, clearly disclosed fee of between 0.4% and 1.5% depending on the currency pair and payment method, and applies the mid-market exchange rate with no added markup. What the Wise calculator shows you is exactly what your recipient receives. There are no hidden costs and no exchange rate games.
Wise supports transfers to more than 160 countries in over 40 currencies. For the most commonly traded pairs such as GBP to EUR or USD to GBP, transfers often complete within minutes. Wise also offers a multi-currency account with local bank details in GBP, EUR, USD, AUD, and several other currencies, making it particularly useful for expats, remote workers, and international freelancers who need to hold and manage funds in multiple currencies. For anyone comparing how to transfer money internationally at the lowest possible cost, Wise is the benchmark.
Wise consistently tops independent cost comparisons for overseas money transfers, and the reason is its pricing model: the mid-market rate with no markup.
- Mid-market rate: no exchange rate markup on any transfer, ever
- Fee shown upfront: you see exactly what you pay before confirming
- 160+ countries: covers the vast majority of international money transfer corridors
- FCA regulated: customer funds safeguarded separately from Wise operating capital
- Multi-currency account: hold, convert, and send in 40+ currencies from a single account
Remitly
Remitly is purpose-built for remittance: sending money abroad from high-income countries to family in lower-income markets. It serves hundreds of corridors and offers two service tiers. Express delivers transfers in under four hours on most routes, sometimes in minutes. Economy reduces the fee in exchange for a delivery window of three to five business days, making it a strong choice when speed is not the priority.
Remitly's biggest differentiator is delivery flexibility. Depending on the corridor, recipients can receive funds by bank deposit, mobile money transfer including M-Pesa in East Africa and GCash in the Philippines, or cash pickup at an agent location. This is especially valuable for people sending money home to countries where banking access is limited. Remitly is FCA-registered in the UK, licensed by FinCEN in the US, and holds active licences in more than 25 countries. For remittance-focused overseas money transfer, it is consistently among the best options available.
Remitly is designed for regular senders who need reliable delivery with multiple payout options for recipients in emerging markets.
- Express delivery: transfers completed in under four hours on most corridors
- Economy option: lower fees with a 3 to 5 business day delivery window
- Mobile money support: reaches M-Pesa, GCash, and other major mobile wallets
- Cash pickup: available at hundreds of agent locations globally
- Rate lock: your exchange rate is locked in at the time you send
Xe
Xe has been a trusted name in currency exchange for over 25 years, and its international money transfer service carries the same reputation for reliability. It offers transfers to more than 130 countries and is particularly competitive on larger transfer amounts, where its combination of tight exchange rates and low fees can save meaningful sums compared to a high-street bank. For anyone comparing how to transfer money internationally at scale, Xe is a consistently strong option.
Xe is a strong option for both personal overseas transfers and business international payments. There is no minimum transfer amount for personal users, and the platform supports a range of payment methods. Xe is authorised by the FCA in the UK, registered with FinCEN in the US, and holds equivalent licences in Australia, Canada, and the EU. For a straightforward, reliable overseas money transfer at a competitive price, Xe ranks among the top three options available.
Xe combines decades of currency expertise with a transfer service that is particularly strong on larger-value international transfers and business use cases.
- 130+ countries: broad coverage for personal and business overseas money transfers
- Competitive exchange rates: consistently below bank-level margins on all major corridors
- Same-day delivery: available on major currency pairs
- Business accounts: dedicated tools for companies sending money internationally
- FCA authorised: regulated in the UK, US, EU, Canada, and Australia
How to Send Money Abroad Online: Step by Step
Most specialist international money transfer services share the same basic process. Here is how to send money abroad online from start to finish, using any of the major providers.
- Create your account: Go to your chosen provider's website or download their app. You will need your name, email address, and phone number. Most services verify your identity before your first transfer, so have a passport or national ID ready along with proof of your current address.
- Enter the transfer details: Specify how much you want to send and in which currency, or enter the amount you want your recipient to receive. The platform will show you the exchange rate, the fee, and the total amount the recipient will receive before you proceed. This is the moment to compare with another provider if you have not done so already.
- Add your recipient details: Enter the recipient's full legal name and bank account information. For a bank transfer, you will typically need their account number and IBAN (in Europe) or their bank's SWIFT/BIC code. For mobile money, you need their registered phone number. For cash pickup, a name and reference code are usually sufficient.
- Choose your payment method: Select how to fund the transfer. Bank transfer is almost always the cheapest funding method. Debit card is slightly more expensive but faster. Credit card payments attract the highest fees and are worth avoiding for any significant transfer amount.
- Review and confirm: Before confirming, check the recipient details, the exchange rate, the fee, and the final amount your recipient will receive. Once confirmed, changes are not always possible and cancellations can take time to process.
- Track your transfer: Once submitted, most providers issue a reference number and a tracking link. You and your recipient will typically receive a notification when the money has arrived.
A wrong account number or bank code can send your transfer to the wrong account entirely. Recovering misdirected funds can take weeks and is not always possible. Before confirming any international money transfer, take 30 seconds to verify the account number, IBAN, and SWIFT code. For a first-time transfer to a new recipient, consider sending a small test amount first to confirm everything is correct.
What to Watch Out For When Sending Money Internationally
The international money transfer industry has become far more transparent over the last decade, but there are still practices that cost senders more than they realise. These are the three areas to check before every transfer, whether you are using a bank wire or a specialist service.
Exchange Rate Markups
The exchange rate margin is the largest hidden cost in most international wire transfers. The mid-market rate, also called the interbank rate, is the rate you see on Google or a currency data service. Most banks do not pass this rate on to retail customers when processing an overseas money transfer. Instead, they apply a margin of typically 2% to 5% and keep the difference as profit. On a 3% margin on a 5,000 pound transfer, that is 150 pounds in hidden cost on top of any disclosed fee.
To check whether you are getting a fair rate, look up the mid-market rate independently, run the same transfer on your provider, and compare the implied rate in the quote against the real market rate. A margin of 0% to 0.5% is excellent. Anything above 1% on a major currency pair is worth questioning. Above 2% on a well-traded corridor, you should look at alternatives before sending. This check takes two minutes and can save you a significant amount on any large transfer.
Transfer Fees
Transfer fees come as flat charges (a fixed amount per transfer) or percentage fees (a proportion of the amount sent). Flat fees favour large transfers: a 25 pound fee on a 10,000 pound transfer is just 0.25%. Percentage fees favour small transfers: a 1% fee on a 100 pound transfer is 1 pound, far less than any flat fee. When comparing cheap international money transfer options, always look at the combined total cost for your specific amount and corridor rather than the fee structure in isolation.
Payment method fees are another cost to watch. Funding a transfer by credit card is almost always more expensive than bank transfer. Most providers add a percentage surcharge for credit card payments. For large international transfers, using a bank transfer to fund the payment reduces the total cost, sometimes by 0.5% to 1% of the transfer amount.
Receiving Bank Charges
The fee you pay your provider covers their side of the transaction. It does not cover what the recipient's bank may charge to receive an incoming international payment. Some banks deduct a flat processing fee when crediting international wire transfers. This charge is applied by the receiving bank and is entirely separate from what your provider charges. If your recipient needs to receive a precise amount, it is worth asking their bank whether they apply an incoming international transfer fee before you send.
How Long Does an International Money Transfer Take?
Transfer times vary depending on the provider, the currencies involved, the destination country, and the delivery method selected. Here is a practical guide to expected timelines across the main services used for sending money overseas.
Service | Typical Time | Notes |
|---|---|---|
Wise | Minutes to 1 day | Instant for GBP, EUR, and USD pairs; longer for less-traded currencies |
Remitly Express | Under 4 hours | Same day or faster on most major remittance corridors |
Remitly Economy | 3 to 5 business days | Lower cost option; best when speed is not critical |
Xe | Same day to 2 days | Fast on major routes; first-transfer regulatory checks may add time |
Bank Wire (SWIFT) | 2 to 5 business days | Slowest option; each correspondent bank in the chain adds processing time |
If speed is the priority when you send money overseas, Remitly Express or Wise are generally the fastest options for most corridors. Banks are the slowest because international wire transfers travel through a correspondent banking chain before reaching the recipient. Each intermediate bank adds processing time, and weekend or public holiday processing is limited at most institutions. Specialist services that use local payment rails bypass this chain entirely, which is why they consistently outperform on speed as well as cost.
Is It Safe to Send Money Overseas?
Sending money overseas is safe when you use a regulated provider. Every legitimate international money transfer service operating in the UK, US, EU, or Australia is required to hold a financial services licence, maintain customer funds in segregated accounts separate from operating capital, and comply with anti-money-laundering and counter-terrorism financing regulations. These requirements protect you if the service ever encounters financial difficulties and ensure your funds cannot be misused.
Before using any international money transfer service you are not familiar with, verify its regulatory status. In the UK, check the FCA Register at register.fca.org.uk and search for the company name or registration number. In the US, verify FinCEN registration and state Money Services Business licensing. In the EU, check the relevant national competent authority. If a service does not appear on a regulatory register, do not use it regardless of the exchange rate offered.
Wise is authorised by the FCA in the UK and regulated in all major markets globally. Remitly is FCA-registered and holds active licences in more than 25 countries. Xe is FCA-authorised and regulated in Australia, Canada, the United States, and the EU. All three are considered fully safe for personal and business international money transfers.
Beyond choosing a regulated provider, apply standard precautions. Always verify recipient bank details before every transfer. Be sceptical of any unsolicited request asking you to send money internationally, particularly one that comes with urgency or an unusually favourable exchange rate offer. Transfer fraud does occur, but the risk is almost always at the instruction level, not the technical level. If the instruction to send is legitimate, using a regulated specialist service is safe.
International Wire Transfer vs Specialist Services: Which Is Better?
For most people, the practical choice when deciding how to send money internationally comes down to a bank wire versus opening an account with a specialist service. Here is how the two compare across the factors that matter most for a typical overseas money transfer.
Factor | Bank Wire Transfer | Specialist Service |
|---|---|---|
Cost | High (fees + 2-4% rate margin) | Low (transparent fee, near mid-market rate) |
Speed | 2 to 5 business days | Minutes to 2 days |
Transparency | Exchange rate rarely disclosed clearly | Full cost shown before you confirm |
Convenience | Uses your existing bank account | New account required; setup takes 10 to 15 minutes |
Currency coverage | Very wide (150+ countries via SWIFT) | Wide (120 to 160+ countries depending on provider) |
For a one-off small transfer where convenience outweighs cost, a bank wire is a reasonable choice. For anyone who transfers money internationally more than once, sends large amounts, or is supporting family who depend on receiving the maximum amount possible, a specialist service is almost always the better choice. The account setup takes 10 to 15 minutes, and the savings begin on the very first transfer.
Compare International Money Transfer Rates Right Now
Use the live comparison tool below to see real-time rates for your specific transfer. Enter your route and amount to find out which provider gives your recipient the most money and which option is the cheapest way to send money internationally for your corridor.
Frequently Asked Questions
What is the cheapest way to send money internationally?
The cheapest way to send money internationally is to use a specialist transfer service such as Wise, Remitly, or Xe rather than a bank. These services use exchange rates close to or at the mid-market rate and charge transparent fees that are typically 70 to 85% lower than what a high-street bank charges for an equivalent transfer. For most corridors, Wise offers the most cost-transparent pricing due to its mid-market rate policy.
How long does an international money transfer take?
It depends on the provider and the corridor. Wise transfers between major currencies such as GBP, EUR, and USD are often completed in minutes. Remitly Express typically delivers within four hours on most corridors. Bank wires via SWIFT take two to five business days. If you need same-day or next-day delivery when you send money overseas, use a specialist service with an express delivery option.
Is it safe to send money overseas using an online service?
Yes, as long as the service is regulated. Wise, Remitly, and Xe are all authorised by the FCA in the UK and hold equivalent licences in other major markets. They are required to hold customer funds in segregated accounts, meaning your money is protected even if the company encounters financial difficulties. Always verify a provider's regulatory status on the FCA Register or equivalent authority before sending.
What is the difference between a transfer fee and an exchange rate margin?
A transfer fee is a disclosed charge that appears clearly on your receipt. An exchange rate margin is the hidden difference between the real mid-market rate and the rate your provider actually uses for your overseas money transfer. Both are real costs, but the exchange rate margin is often the larger one. To compare providers accurately, always calculate the total amount your recipient will receive rather than just comparing the stated fee.
Do I need a SWIFT code to send money internationally?
For traditional bank-to-bank international wire transfers, yes. A SWIFT or BIC code identifies the recipient's bank within the global correspondent banking network. Some specialist transfer services use alternative routing systems and may ask for an IBAN or local account number instead. Wise, for example, frequently uses local payment rails rather than SWIFT, which is part of why its transfers are faster and cheaper than a standard bank wire.
Can I send money overseas using my bank?
Yes, all major banks support international wire transfers via SWIFT. However, bank transfers are typically the most expensive option. Most banks charge a flat fee of between 15 and 40 pounds per transfer and apply an exchange rate margin of 2% to 5%. For an occasional small transfer where convenience matters more than cost, this is acceptable. For anything regular or above a few hundred pounds, a specialist international money transfer service saves significant money.
What is the best app to send money internationally?
Wise is consistently rated as one of the best apps for international money transfers. It uses the mid-market exchange rate with no hidden markup, shows all fees before you confirm, and supports transfers to over 160 countries. Remitly is the top-rated app for remittances to Asia, Africa, and Latin America. Xe is strong for larger transfers and business use. All three are available on iOS and Android.
How do I send money abroad without paying high fees?
Use a specialist transfer service that offers rates close to the mid-market rate, and fund your transfer by bank transfer rather than by card. Card payments attract additional processing fees. Compare the total received amount across at least two providers before sending. For regular senders, consolidating multiple small transfers into fewer larger ones can reduce the impact of any flat transfer fees.
How much does it cost to send money overseas?
Cost varies by provider and corridor. On a 1,000 pound transfer from the UK to Europe, Wise typically charges around 5 to 7 pounds in total. A high-street bank might charge 20 to 35 pounds in fees plus a 2% to 3% exchange rate margin, bringing the real cost to 40 to 65 pounds or more. Always calculate the amount your recipient will receive rather than comparing stated fees alone, as the exchange rate margin is often the larger cost.
What is the best way to send a large amount of money internationally?
For large transfers, the exchange rate margin matters most. A 1% difference in rate on a 50,000 pound transfer costs 500 pounds. Prioritise providers offering rates close to the mid-market rate over those advertising low flat fees. Wise and Xe are both strong choices for large personal international money transfers. Some providers also offer dedicated services for high-value transfers with rate negotiation for amounts above a certain threshold.
What information do I need to send money internationally?
You will need the recipient's full legal name, their bank account number or IBAN, and their bank's SWIFT or BIC code. For mobile money transfers, you need their registered phone number. For cash pickup, typically only the recipient's name and a government-issued ID are required at the collection point. Some providers may also ask for the recipient's bank address for certain corridors.
Why is my bank's exchange rate worse than the rate I see on Google?
The rate on Google is the mid-market rate, also called the interbank rate. This is the rate at which banks trade large amounts of currency between each other on wholesale markets. Retail banks rarely pass this rate on when processing an overseas money transfer for individual customers. Instead, they apply a margin of typically 2% to 5% and keep the difference as profit. Specialist transfer services like Wise use the mid-market rate and charge a separate, disclosed fee instead, which is why their total cost for the same international money transfer is almost always lower.
Mohammad Humaid
Verified AuthorMo is the founder of MoneyTransferStore. As an expat who has experienced the challenges of sending money across borders himself, he set out to help others like him avoid hidden fees and unfair exchange rates on international transfers. With a background spanning fintech, payments, and Web3, Mo brings years of practical experience to building a platform focused on transparency and trust.
