Top 3 Cheapest Ways to Transfer Money Internationally

Table of Contents

• What to Consider when Transferring Money Abroad
• Exchange Rate
• Transfer Fees
• Receiving Fees
• Why Are Money Transfer Services the Cheapest Means of Sending Money Internationally?
• Specialized Services
• Reduced Costs
• Peer-to-Peer Transfers (P2P)
• The Cheapest Ways to Transfer Money Internationally
• CurrencyFair
• XE Money Transfer
• Wise
• How to Find the Cheapest Way to Transfer Money Internationally?
• Do You Need To Find the Best Remit Exchange Rate for Sending Money Internationally?

When you need to send money to loved ones in another country, the last thing you want to worry about is how much it's going to cost. Luckily, there are several ways to transfer money internationally that are fast and affordable.

In this article, we will discuss the top three cheapest ways to transfer money internationally. Whether you're looking for a quick solution or want to find the best deal possible, we've got you covered!

What to Consider when Transferring Money Abroad

When you make an international money transfer, there are several things you need to consider to get the best value for your money. Here are three of the most important factors:

Exchange Rate

This is the rate at which one currency is exchanged for another. The exchange rate can fluctuate greatly, so it's important to watch it carefully and transfer your money when the rate is in your favor. There are a few ways to do this:

• Check the news. Currencies can be affected by political and economic events, so keeping up with the latest news can help you predict how they'll perform against each other.
• Use a currency converter. These can be found online or as apps for your phone or tablet. They'll show you the current exchange rate and how it's changed over time.
• Check the rates at your bank. Banks usually have their own rates, which can be different from the market rate. It's worth checking to see if they're offering a good deal.

Transfer Fees

Most banks and money transfer services charge a fee for making an international transfer. These fees can vary considerably, so it's worth shopping around for the best deal. Some remittance service providers also offer fee-free transfers if you meet certain conditions, such as transferring a certain amount of money.

Receiving Fees

Some banks charge a fee for receiving an international transfer. This is usually a percentage of the total amount being transferred, so it's important to check with the recipient's bank before making your transfer.

Be aware of exchange rates and fees as these will have a direct impact on your money transfer payout.

Why Are Money Transfer Services the Cheapest Means of Sending Money Internationally?

The recent rise in online banking has caused many people to move away from using physical branches. Why go out when you can do all your transactions digitally? This is especially true for international money transfers, as most services offer low fees and lower overhead costs that allow them to charge less than what's offered by traditional banks.

Below, we present some specific reasons why money transfer services are able to provide you with better rates and increasingly lower fees. All this only contributes to making international money transfers cheaper for you.

Specialized Services

Money transfer companies (and there are many to choose from these days) concentrate specifically on how they can send their consumers' money abroad faster, more affordably, and with greater reliability than any other service.

Reduced Costs

Because most money transfer firms use technology rather than traditional brick-and-mortar banks, they have lower overhead costs. They can afford to offer reduced international money transfer rates because of their financial stability.

Peer-to-Peer Transfers (P2P)

Most internet transfer companies have P2P money pools in the countries where they do business, which allows for a significant reduction in costs and transfer fees.

P2P services fundamentally allow for peer-to-peer currency purchasing and selling. Rather than transferring your funds across borders into a new currency, the funds are instead "swapped" with funds that are being transferred in the other direction.

This kind of transmission is incredibly cheap for sending smaller amounts of money abroad and is a major factor in why money transfer firms can be so much less expensive than banks.

Money transfer companies use a variety of strategies to keep their costs low. This helps them provide better rates and lower fees.

The Cheapest Ways to Transfer Money Internationally

Often, using a money transfer service that specializes in assisting customers to move their money abroad in foreign currencies is the most affordable option to send money worldwide. It is advantageous to use a specialized money transfer company because it enables you to transfer money within hours rather than approximately 2–3 working days.

Here are the top 3 cheapest ways to transfer money internationally:

CurrencyFair

CurrencyFair is one of the most popular currency exchange platforms for good reason. They offer some of the most competitive rates in the market. On top of that, they don't charge any commission fees or hidden costs.

CurrencyFair also offers locking in an exchange rate for up to 24 hours. This means that even if the market rate changes during that period, you will still get the original rate that you locked in.

Pros:

• There is no minimum transfer outside of the country and the limit is very high.
• You can send to more than 150 countries.
• Freedom to choose between transferring money automatically or waiting for the best exchange rate.
• Your internet account, money, and website will be safe with their services.
• Get money from abroad without paying bank fees for your business.
• Physical locations in Singapore, Hong Kong, Australia, the UK, and Ireland.

Cons:

• You are unable to secure exchange rates unless you have money in CurrencyFair's account.
• Cash pick-up, mobile wallets, and bill payments are not available.
• Transferring money internationally may take longer than with other companies.
• Customers who must transmit a specific amount without first knowing the exchange rate may find it less than desirable.

XE Money Transfer

XE is another popular currency exchange platform that offers very competitive rates. They also don't have any commission fees or hidden costs. One of the great things about XE is that they offer a mobile app so you can easily transfer money on the go.

Additionally, your money and information is in safe hands with a company that has more than 25 years of extensive experience in the foreign currency and international money transfer business.

Pros:

• There is no minimum transfer value limit. Plus, you can send up to USD 500,000 (or equivalent in other currencies).
• They have a reasonably low fee for sending and receiving money internationally. If you send above a minimum threshold, XE will waive your fee altogether.
• XE is very convenient to use because you can complete everything online using their website or mobile app.
• You can send money in more than 98 global currencies to over 130 countries worldwide.

Cons:

• Local cash pickup is not supported by XE Money Transfer; only bank account transactions are.
• Fewer alternatives for transferring funds overseas with only bank transfer and cash pickup supported.
• You have to pay a fee for low value transfers – the fee is pretty small though compared to some other companies.
• Exchange rates are competitive but may not always be the best.

Wise

Formerly TransferWise, Wise is a newer player in the international money transfer space, but they are quickly gaining popularity. One of the reasons Wise is popular is because they offer some of the most transparent pricing and fees in the market. Wise does not have any commission fees or hidden costs, which, if present, can be a major factor in reducing the payout your overseas recipient gets.

Another great thing about Wise is that they offer a mobile app so you can easily transfer money on the go.

Pros:

• Delivery in a matter of minutes.
• The price is always shown upfront, making it one of the most transparent methods of money transfer without hidden fees.
• It's incredibly convenient because you can complete everything online.
• Compared to utilizing banks to send money abroad, it is less expensive and simpler.
• There is no set minimum for transactions.
• Wise enables you to make monthly payments while sending money worldwide for business needs.
• Very small FX markups on rates - Wise doesn't add a big exchange-rate markup to its transfers, in contrast to banks and other money transfer companies.
• You can send money to more than 40 countries.

Cons:

• Slower than average bank transfer delivery timeframes. Since each stage of the procedure (Wise receiving, converting, and delivering) can take days, transfers paid with bank accounts can take longer than a week. The average overall time, however, is up to three or four business days for four countries: India, Mexico, Germany, and the United Kingdom.
• Customer assistance is limited to minimal phone hours and intermittent live chats. The best way to receive support is via email.

How to Find the Cheapest Way to Transfer Money Internationally?

Money transfer services are a great way to send money internationally, but they all have their pros and cons. Which service is best and how frequently it's used by most people depends on what you need from your international cash transfer.

However, there are other rules of thumb to keep in mind to ensure that you save every extra dollar when sending money internationally for everyday use. These include:

• Make sure you open bank accounts that don't charge extra for foreign money transfers. Find out more by doing some research on a list of the top banks for international travel.
• Make sure the money transfer provider you select is secure and legally authorized. The services have to follow the strictest security guidelines and are among the safest methods of sending money abroad.
• Send one large transfer whenever you can, as opposed to several smaller ones. It's usually cheaper to send larger transactions than smaller ones in terms of percentage costs.

Follow above best practices to maximize the return on your international money transfers.

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.