RemitFinder's Guide to the Cheapest Ways to Transfer Money Internationally

Table of Contents

• Important Factors to Keep in Mind When Sending Money Internationally
• What are the factors that impact the cost of sending money internationally?
• Transfer Fees
• Speed of Transfer
• What factors influence the speed of international money transfers?
• What are the Different Ways of Transferring Money Internationally?
• Bank Transfers
• Money Transfer Services
• Prepaid Debit Cards
• Cash
• Bitcoin
• What are the Average International Money Transfers Fees?
• How to Find the Cheapest Ways to Send Money Internationally?
• The Bottom Line
• Do You Need To Find the Best Remit Exchange Rate for Sending Money Internationally?

If you are looking for the cheapest way to transfer money internationally, RemitFinder is here to help. We have compiled a comprehensive guide with all the best tips and tricks to help you get the most bang for your buck.

Whether you are transferring money to family or friends or sending payments overseas for business purposes, we have you covered. So, what are you waiting for? Read on to find out how you can save big on your next money transfer!

Important Factors to Keep in Mind When Sending Money Internationally

When sending money to relatives overseas or making international bank wire transfers, currency exchange occurs, and the rate varies every day and is determined at the time of the transaction. The process of converting one currency into another at a predetermined rate is known as foreign exchange. Almost all currencies see constant fluctuations in conversion rates as a result of supply and demand in the market.

The exchange rate is a cost of money transfer that needs to be taken into account even if it is not a fee. It will establish how much money will be paid to ensure that the recipient receives the required amount, or how much money must be received on the other end.

Remittance price structures may not be transparent, with customers potentially being subjected to hidden fees in the form of a marked-up exchange rate.

Money transfers fees come in 2 forms - direct fees, and indirect ones due to inferior exchange rates.

What are the factors that impact the cost of sending money internationally?

Pay attention to the important factors below that will have a direct impact on the cost of your money transfer:

Transfer Fees

The first thing you need to check when looking for a money transfer service is the fee. Some services can charge a lot in fees just to send your money abroad! RemitFinder helps you compare rates from different money transfer companies so you can be sure you're getting the best deal.

To see how much it will cost you to transfer money, simply enter on RemitFinder how much money you want to send, where the money's coming from, and where it's going. We'll show you a list of exchange rates from many providers so you can see which one makes sense for you. You can also see reviews from other users to help you make your decision.

Once you've found the right service for you, all you need to do is sign up and start transferring! RemitFinder makes it easy to start sending money internationally - you can do a quick check of the pertinent exchange rates provided by various money transfer companies and quickly make your choice - without breaking the bank.

Speed of Transfer

The time it takes for your money to arrive in the recipient's account is an important factor to consider when choosing a money transfer service. Some methods are faster than others, and the speed of the transfer will usually depend on how much you're willing to pay. For example, if you need your money to arrive as quickly as possible, you might want to use a service such as Panda Remit or Revolut, both of which can send funds almost instantly.

On the other hand, if you don't mind waiting a few days for your money to arrive, you could also use other options such as a bank transfers or sending money with other online money transfer services.

In general, the faster you need your money to arrive, the more you'll have to pay in fees. Therefore, if speed is important to you, be sure to compare prices before you choose a money transfer service.

RemitFinder Tip: When comparing prices, don't forget to factor in the exchange rate. Some companies might charge lower fees, but they could also have less favorable exchange rates. Be sure to compare all the costs before making a decision.

What factors influence the speed of international money transfers?

Your international money transfer speed is affected by many factors. Each factor has different levels of importance when it comes to how quickly your international money transfer will go through. Let's look at the most important of these below:

• How you send the money. Online transfers are usually quicker than in-person transactions. This is because the process is automated and there are fewer steps involved. In-person transfers can take longer because they often have to be processed manually.
• The countries you're sending to and from. Some countries have faster banking systems than others. For example, countries in Europe tend to have faster banking systems than countries in Asia. This means that transfers to and from these countries will usually take less time.
• The amount of money you're transferring. The larger the amount of money you're transferring, the longer it will take. This is because banks need to verify that the funds are available before they can be sent.
• The currency you're transferring. Some currencies are harder to convert than others. For example, converting between two different types of Asian currency can often take longer than converting between two European currencies. This is because there are fewer conversion centers for Asian currencies.

Keep these factors in mind when you're sending an international money transfer. By understanding how each one affects the speed of your transfer, you can make sure that your money arrives as quickly as possible.

Understanding various aspects of an international money transfer will help you find cheaper options.

What are the Different Ways of Transferring Money Internationally?

There are a few different ways that you can transfer money internationally, and each has its own set of pros and cons. Here is a quick rundown of the most popular methods:

Bank Transfers

This is probably the most common way to send money abroad. You can do it through your bank's online banking platform or by going into a physical branch. The main advantage of bank transfers is that they are convenient; you already transact with your bank, and its quick and easy to send money through them.

A potential drawback is that bank transfers can be expensive and come with a relatively inferior exchange rate. Bank transfers can also take a few days to process and you will need to have all the necessary recipient information on hand (e.g., IBAN, SWIFT code, etc.).

Bank transfers can come with higher fees and lower exchange rates.

Money Transfer Services

Many companies specialize in international money transfers, such as WorldRemit and TransferGo. These services are typically faster than bank transfers, and they also tend to provide much better exchange rates than your bank would offer.

Prepaid Debit Cards

You can load money onto a prepaid debit card and then use it to withdraw cash or make purchases in the country you are visiting. This can be a convenient option, but it is important to compare fees before you choose this method.

Cash

If you are traveling to another country, you may want to bring some cash with you to exchange for local currency. This is not always the safest option, as you could lose your money if it is stolen. However, it can be helpful in a pinch.

Bitcoin

Bitcoin is a decentralized digital currency that can be used to send money anywhere in the world. The transaction fees are usually very low, but the process can be a bit complicated for first-time users.

There are many ways to transfer money internationally. Do your research before you decide which option to choose.

What are the Average International Money Transfers Fees?

The amount you pay to transfer money overseas depends on which country you're sending from as well as sending to. As of Q2 2021, the global average cost of sending a USD 200 remittance was 6.30%¹. In the quarter prior i.e., Q1 2021, the same was 6.38%. For reference, the same statistic back in Q1 2009 was 9.67%. This is good news as it seems that the overall cost to send money overseas has continued to decrease through the last several years.

Here are some average money transfer fees* that you can expect to pay for some G20 receiving countries, based on the average cost of a USD 200 transfer:

• Brazil: 6.10%
• China: 7.14%
• India: 5.18%
• Indonesia: 6.16%
• Mexico: 4.59%
• South Africa: 7.16%
• Turkey: 7.54%

¹ World Bank's Q2 2021 report on global remittance prices
* All data based on World Bank's Q2 2021 publication of global remittance prices

Note that the average cost to send USD 200 to G20 countries was 6.06% as of Q2 2021.

These are just averages, though, and your bank or provider may charge more or less depending on the amount you're sending, the method you use, and their fees.

Sending money to India, for example, has gotten cheaper in recent years. In 2017, the average cost of an international transfer to India was 6.04%. As of Q2 2021, it had come down to 5.18%. That's a saving of more than 14%!

The same is true for other countries on this list, including Mexico (down from 5.11% in 2017 to 4.59% in 2021 – a reduction of over 10%), and China (down from 10.28% in 2017 to 7.14% in 2021 – a significant saving of more than 30%).

International money transfer costs continue to go down every year.

How to Find the Cheapest Ways to Send Money Internationally?

If you need to send money internationally, what are your options? And how can you find the cheapest way to do it? Here are a few suggestions:

Use an online money transfer service
Online money transfer services often have lower fees than banks. They also tend to offer better exchange rates, so you'll get more bang for your buck. And they're usually faster and easier to use than banks.

Compare providers
Not all online money transfer services are created equal. Some have higher fees, some have worse exchange rates, and some don't even let you send money to certain countries. That's why it's important to compare your options before you decide which one to use.

Use a fee-free service
Many online money transfer services charge fees, but there are a few that don't. With a service like RemitFinder, for example, you can check the exchange rates provided by hundreds of money transfer companies across more than 35,000 country combinations – this can be highly useful information to compare various available options. Then you can make the choice that is best for you. That means you can send money overseas without having to worry about hidden fees eating into your transfer.

Send more at once
Some providers charge lower fees for larger transfers. If you need to spend a lot of money overseas, you may be able to save by sending it all in one go rather than making multiple smaller transfers.

Choose the right method
The method you use to send money overseas can also affect how much it costs. For example, bank transfers tend to be more expensive than most online money transfer services. And if you need your money to arrive quickly, you may have to pay extra for an express or same-day transfer.

Follow best practices and recommendations to find the cheapest ways to send money internationally.

The Bottom Line

Sending money internationally can be an expensive process, especially if you are not aware of the intricacies involved. The more information you have, the better decisions you can make. Information is power indeed!

Follow the best practices we have outlined in this guide to find the cheapest ways to transfer money internationally. Every penny saved means more money in your recipient's pocket for the same transfer amount.

Do You Need To Find the Best Remit Exchange Rate for Sending Money Internationally?

RemitFinder is an online service that helps you track remit exchange rates. By checking and comparing the latest remit exchange rates, you can get the best exchange rate for your money transfers. RemitFinder, thus, helps you to get the best return for your hard-earned money.

Find the cheapest rate to transfer your hard-earned money - visit our site or download the app on Google Play or Apple App Store now.