How to Save Money on International Transfers
Sending money abroad can be expensive, with high fees and poor exchange rates eating into your funds. Whether you're supporting family overseas, paying for services, or managing business transactions, finding ways to reduce costs is essential.
In this guide from CurrencyRatez.com, we'll explore practical strategies to save money on international transfers, compare different providers, and highlight hidden fees to avoid.
Why Are International Transfers So Expensive?
Before diving into cost-saving tips, it's important to understand why international money transfers can be costly. The main factors include:
- Transfer Fees – Banks and money transfer services charge fixed or percentage-based fees.
- Exchange Rate Margins – Providers often add a markup to the mid-market rate, increasing costs.
- Intermediary Bank Fees – Some transfers pass through multiple banks, each taking a cut.
- Speed of Transfer – Faster transfers usually come with higher fees.
Key Insight: The actual cost of international transfers is often hidden in poor exchange rates rather than upfront fees. Always check both when comparing options.
1. Compare Transfer Providers
Not all money transfer services are created equal. Traditional banks are often the most expensive, while specialized providers like Wise, Revolut, and OFX offer competitive rates.
Best Money Transfer Services for Low Fees:
Top Provider Comparison
| Provider | Best For | Fees | Exchange Rate |
|---|---|---|---|
| Wise | Small-medium transfers | 0.5-1% | Real mid-market rate |
| Revolut | Frequent transfers | Free (with limits) | Interbank rate |
| OFX | Large transfers ($10k+) | None (built into rate) | Negotiable for big amounts |
| PayPal | Convenience | 2.9-5% | Poor (4% markup) |
Tip: Use comparison tools like CurrencyRatez.com or Monito to find the best deal for your specific transfer.
2. Avoid Banks for International Transfers
Banks are convenient but typically charge high fees (up to $50 per transfer) and offer poor exchange rates. If you must use a bank, check if they have partnerships with foreign banks to reduce intermediary fees.
Bank Transfer vs Specialist Providers
- Bank transfer fee: $25-$50
- Exchange rate markup: 3-5%
- Total cost on $1,000 transfer: $55-$100
- Specialist provider cost: $5-$15
Alternative: Use digital-first providers like Wise or Revolut for better rates.
3. Watch Out for Hidden Exchange Rate Markups
The biggest cost in international transfers isn't always the upfront fee—it's the exchange rate markup. Banks and some providers add 3-5% above the real mid-market rate.
How to Avoid This:
- Always check the mid-market rate (Google or CurrencyRatez.com) before transferring.
- Use providers that offer the real exchange rate (like Wise).
- Avoid dynamic currency conversion (DCC) when paying with a card abroad.
Example: On a $1,000 transfer, a 3% markup costs you $30 extra—often more than the transfer fee itself!
4. Choose the Right Transfer Speed
If you don't need the money to arrive immediately, opt for a slower transfer method (1-3 days instead of same-day). Faster transfers often come with premium fees.
Transfer Speed vs Cost
- Same-day: +$15-$30 fee
- 1-2 business days: Standard fee
- 3-5 business days: Sometimes discounted
5. Bundle Transfers to Save on Fees
Instead of sending multiple small transfers (each with its own fee), consolidate into a single larger transfer. Some providers offer discounts for high-volume senders.
Cost Comparison
- Sending $1,000 once may cost $10 in fees.
- Sending $200 five times could cost $50 total.
Business Tip: If you make regular payments, ask providers about bulk transfer discounts.
6. Use Peer-to-Peer (P2P) Transfers
Some platforms allow direct transfers between users in different countries, cutting out intermediaries.
Examples:
- Cryptocurrency (BTC, USDT, XRP) – Fast and low-fee, but volatile.
- Local Payment Apps – Alipay (China), UPI (India), or M-Pesa (Africa) may offer cheaper local transfers.
Caution: Crypto transfers can be risky due to price fluctuations. Only use stablecoins like USDT if you're experienced.
7. Negotiate Fees for Large Transfers
If you're sending a significant amount (over $10,000), some providers may offer discounted fees or better exchange rates. Contact customer support to negotiate.
Large Transfer Savings
- Standard fee: 1% ($100 on $10,000)
- Negotiated fee: 0.5% ($50 on $10,000)
- Potential savings: $50 + better exchange rate
Final Thoughts: Key Takeaways
International transfers don't have to be expensive. Follow these best practices to save money:
Money-Saving Checklist
- ✅ Compare providers using tools like CurrencyRatez.com
- ✅ Avoid banks for better rates
- ✅ Check the real exchange rate (mid-market rate)
- ✅ Bundle transfers to reduce fees
- ✅ Negotiate for large transfers
- ✅ Choose slower transfers when possible
By implementing these strategies, you could save 50-80% on international transfer costs compared to traditional bank transfers.
FAQs
Q: What's the cheapest way to send money internationally?
A: For most people, Wise or Revolut offer the best combination of low fees and fair exchange rates. For large transfers ($10k+), OFX may be better.
Q: How can I check if I'm getting a good exchange rate?
A: Compare against the mid-market rate on CurrencyRatez.com or XE.com. Good providers should be within 0.5-1% of this rate.
Q: Are cryptocurrency transfers really cheaper?
A: Yes, but only if you use stablecoins (USDT, USDC) and the recipient can accept crypto. Traditional methods are simpler for most people.
Q: How much can I expect to save by following these tips?
A: On a $1,000 transfer, you might save $30-$50 compared to bank rates. Savings increase with larger amounts.