Cheapest International Wire Transfer Options Compared

Sending money internationally can be a costly affair, but it doesn't have to be. According to our research, the cheapest international wire transfer options can save you up to 70% compared to traditional banks.

TransferWise, for instance, charges a flat fee of 0.5% to 1% of the transfer amount, with no hidden fees or exchange rate markups. This translates to significant savings for small to medium-sized transfers.

For larger transfers, banks like Bank of America and Wells Fargo charge an average fee of $45 to $65 per transfer, plus a markup on the exchange rate. This can add up quickly, especially for frequent transfers.

The good news is that there are affordable alternatives to traditional banks.

Western Union and similar services like MoneyGram offer convenient and dependable money transfers, but they can be pricey. They charge a flat rate based on transfer speed, location, and amount, with international transfers also subject to an exchange rate, resulting in hidden charges.

Fees can range from $8 for a next-day transfer to $22 for a transfer to the UK, and they can change at any time. Western Union's rate markups vary widely depending on payment type, delivery method, and destination country.

For a $200 transfer within the US or Canada, you can expect to pay around $12 for a rapid transfer, while a transfer to the UK will cost around $22.

Western Union is a well-established service for sending money internationally. It offers a wide range of options for sending and receiving cash, including cash pickup locations and mobile wallets.

You can send money to over 200 countries worldwide using Western Union. The service is highly dependable and convenient, making it a popular choice for international money transfers.

Fees for Western Union vary widely depending on the location, speed, and delivery method. For example, a $200 transfer to the United States or Canada can cost around $12 for a rapid transfer and $8 for a next-day transfer.

Western Union's network is one of its main advantages, especially for sending cash in person and providing cash-pickup delivery options. The service is available in many countries, making it a reliable option for international money transfers.

To send more than $3,000 through Western Union in the United States, you'll need to verify your identity. Once you have, you can send up to $50,000, though the country you are sending to may impose lower limits.

You can also send money from your bank account using Western Union, or use your credit or debit card to send cash. The service offers a price estimator tool to help you estimate the costs of sending money internationally.

Recipients can collect money in cash, on a prepaid debit card, as a deposit into their bank account, or via mobile wallet. This makes Western Union a convenient option for underbanked senders and recipients alike.

Some banks charge similar fees for sending outgoing wire transfers, but they vary from bank to bank. Banks tend to charge similar fees for sending outgoing wire transfers, but they vary from bank to bank.

Domestic outgoing wire transfer fees typically range from $0 to $35. International outgoing wire transfer fees are usually $35-50.

Business accounts have a $75 fee. The fee range can be significant, so it's essential to check with your bank before sending a wire transfer.

You can expect to pay around $35-50 for an international outgoing wire transfer at many banks. Some banks may offer special remittance programs for transferring slightly smaller amounts.

If you're looking for alternative methods to wire money internationally, consider using a payment or money transfer app like Zelle, which can send money for free. However, be aware that some banks have transaction limits that restrict the amount you can send.

Sending a check is another option, but it takes time. You can also use online bill pay, which might be free. Paying by debit or credit card is possible, but there may be fees associated with it.

Here are some specific alternatives to wire transfers:

Some banks offer special remittance programs for transferring smaller amounts, but be sure to check the exchange rates as they may be making money off the transaction fee spread.

Banks often charge both outbound and inbound fees on money transferred to or from your account. For example, a foreign airline refunded my ticket fare to my U.S. bank account, and my bank charged me a $25 fee to receive the foreign transfer.

The best international transfer services can minimize or avoid users' bank fees. Some banks, like Chase, offer steep discounts for sending international wires in the local currency, rather than U.S. dollars.

To avoid wire transfer fees, select a financial institution or account that waives wire transfer fees. You can also use a payment or money transfer app like Zelle to send money for free, but be aware of transaction limits.

Here are some strategies for avoiding wire transfer fees:

Some banks, like Chase, don't allow check writing or incoming or outgoing wire transfers on certain accounts, such as the Chase First Checking account.

Cash is a viable option for international money transfers, especially when one or both parties don't have a bank account.

You can send cash through domestic money transfer centers, which then convert it to the recipient's local currency and can be picked up at a participating location.

Institutions like Western Union, MoneyGram, and Ria have a large presence in various areas and offer this service.

Some fintech companies, such as Wise, Payoneer, PayPal, and WorldRemit, also provide international money transfers.

To send cash, you can take it to a money transfer service location, like a Western Union counter, and have it sent to someone in another country.

The recipient can then pick up the cash in their local currency at a participating location.

However, carrying large amounts of cash comes with risks of theft or loss, and even with security measures in place, fraud remains possible.

Third-party transfer services can be a cost-effective way to send money internationally. They often charge lower fees than wire transfers, with some services offering no transfer fees at all.

These services, like Wise and OFX, move money through various methods, but generally tend to be cheaper than sending money directly through your bank using a wire transfer.

Some third-party services, like PayPal and Venmo, offer extended hours outside the traditional bank wire window, making them a convenient option for those with non-traditional schedules. They also often have lower transaction fees compared to wire transfers.

Third-Party Services are a great way to send money internationally, often cheaper than sending money directly through your bank using a wire transfer.

Most people want to send or receive money to and from checking accounts, and you can do this by connecting your bank account to a third-party transfer service like Wise or OFX.

These international money transfer companies move money in a variety of ways, but as a general rule, they tend to be cheaper than sending money directly through your bank using a wire transfer.

When using a third-party transfer service, they often charge an explicit transfer fee in addition to the exchange rate margin.

Some companies don’t charge any transfer fees at all and simply earn their money through the currency exchange rates they offer, but be aware that these “fee-free transfer services” are hiding their fees in the currency exchange rate, where it’s less obvious.

Many companies offer expedited transfers for a higher fee, so if your transfer isn’t urgent, avoid these expedited fees.

You can fund a transfer with a bank account, debit or credit card, or PayPal account since services like Xoom and Wise offer these options.

Some third-party transfer services, like PayPal, charge high margins on exchange rates but relatively low fixed foreign transfer fees.

Transparency is key with third-party services, like Wise, which displays the exact amount your recipient can expect to receive.

WorldRemit offers transparency on costs, showing you the exchange rate you’ll get and how much it will cost to complete the transfer, so you can double-check this amount before hitting “submit.”

Email money transfers are a convenient option, especially if you're short on time or don't have the recipient's bank account number. This service is available from some Canadian banks and functions like an electronic check.

You can initiate a transfer by email, and the recipient will receive a notification when the funds are available. The funds are typically transferred within a few days, making it a reliable and fast option.

A nominal cost of a couple of dollars is usually charged for transferring funds, while receiving funds is often free. This makes email money transfers a cheap option if available to you.

Be cautious and only accept email transfers from people you know to avoid falling victim to a phishing scam.

Exchange rates and fees can eat into your transfer amount, leaving you with less money than you expect. This is known as an exchange rate margin, where the service takes a cut of the currency exchange.

Imagine sending $1,000 to Brazil, where the exchange rate is US$1 to R$5, but your bank or transfer service offers a rate of US$1 to R$4.70. In this case, your friend will only receive R$4,700 instead of R$5,000.

Banks and transfer services often hide these fees in the exchange rate, so it's essential to shop around for the lowest rate. This is especially crucial for frequent senders and receivers of wire transfers.

The average wire transfer fees vary from bank to bank, but some banks charge similar fees for outgoing transfers. For example, some banks charge fee ranges that are comparable to others.

To send money internationally, you have several options available. You can transfer money from an American bank account to a foreign bank account using an international wire. This requires the foreign account's IBAN number or SWIFT code, which specifies the particular bank and bank account number that will be receiving the funds.

You can initiate the wire directly from your domestic bank, or utilize one of several money transfer services. Some banks will offer steep discounts for sending in the local denomination, not U.S. dollars. For example, if you make an international wire transfer on your own with Chase in U.S. dollars, you'll pay $40.

However, if you send it in the foreign currency, you'll pay just $5, or even nothing if you're sending at least $5,000. Depending on how you want to send or receive money, you have several options available.

To understand how money transfer services work, let's start with the basics. There are three main rates that determine the cost and amount of money your recipient receives: exchange rate, midmarket rate, and exchange rate markup.

The exchange rate is the price of one currency in relation to another. For example, if you want to convert U.S. dollars to euros, you'd check what one U.S. dollar is worth in euros.

We analyzed seven major providers in the international money transfer industry: MoneyGram, OFX, Remitly, Ria, Wise, Western Union, and Xoom (owned by PayPal). Our analysis focused on transfers to Germany, India, Mexico, and the United Kingdom.

Here are the three key rates that determine the cost and amount of your international money transfer:

Let's break down the definitions that matter when it comes to money transfers.

An exchange rate is the price of one currency in relation to another currency. For example, if you want to convert U.S. dollars to euros, you would check what one U.S. dollar is worth in euros.

The midmarket rate, also called the interbank rate or interbank exchange rate, is the exchange rate that big banks use to swap currencies among one another.

Most providers use an exchange rate markup when pricing your transfer. This markup is an additional percentage added to the midmarket rate to make a profit on the transfer. The higher the markup, the less your recipient gets in their currency.

Here's a quick rundown of the three rates that determine how much your money transfer will cost and how much money your recipient will receive:

We analyzed seven providers that work in the U.S., focusing on major players in the international money transfer industry, based on market research, experts, cost analysis and U.S. internet traffic.

Our research considered providers such as MoneyGram, OFX, Remitly, Ria, Wise, Western Union and Xoom (owned by PayPal).

The exchange rate markups and data mentioned in our analysis were based on transfers to Germany, India, Mexico and the United Kingdom for $1,000 and $10,000.

Fees for international money transfers can be complicated and not all providers are transparent about their fees and margins.