How to Transfer Money Internationally Without Paying High Fees
Banks often charge 3-7% on international transfers. Here are the best strategies to move money across borders affordably.
International money transfers are notoriously expensive. Traditional banks often charge a flat transfer fee plus a currency conversion markup of 2–5% above the mid-market rate. On a $5,000 transfer, that can mean $150–$350 lost to fees and poor exchange rates.
Understanding the True Cost
The true cost of an international transfer has two components:
- Transfer fee: A flat charge or percentage, typically $10–$50 at banks.
- Exchange rate markup: The difference between the mid-market rate and the rate offered to you. This is often hidden and is where providers make the most profit.
Always compare the total amount received at the destination — not just the fee — when evaluating transfer services.
Best Options for Cheap International Transfers
Specialist Transfer Services: Companies like Wise (formerly TransferWise), Remitly, and OFX use the mid-market rate and charge a small transparent fee. On most major currency corridors, the total cost is 0.3–1%.
Multi-Currency Accounts: Services like Wise and Revolut allow you to hold multiple currencies in one account and convert at the mid-market rate when rates are favorable, rather than at the moment of the transfer.
Local Bank Networks: Some banks have international partnerships that allow fee-free transfers between partner institutions. Ask your bank if they participate in networks like SWIFT gpi or have correspondent bank agreements.
What to Watch Out For
- "No fee" transfers: These almost always compensate with a worse exchange rate. There is no free lunch.
- Receiving fees: Some banks charge the recipient to receive international transfers. Factor this into your comparison.
- Transfer limits: Many services have daily or monthly limits that may affect large transfers.
For Regular Transfers
If you're sending money internationally on a regular basis (e.g., supporting family abroad, paying international contractors), setting up a standing order or recurring transfer with a specialist service can automate the process and lock in good rates over time.