The best ways to transfer money internationally

Moving overseas means finding new ways to deal with things. When you have friends and family in a different part of the world, you will probably at one point need to transfer money overseas. So, ExpatInfo have looked at the different reasons for choosing to make an international wire transfer and how to send money abroad using a number of platforms. This article is created to help you find the best way to transfer money internationally.

The pros and cons of international money transfer

PROS

• It’s convenient. Transfer money abroad to any number of international destinations as often as you’d like without leaving your home.
• It’s quick. Your friends or family can receive the money quickly, sometimes it’ll only take a few minutes.
• Many choices. Don’t like the exchange rate your bank is offering? Plenty of other companies will offer to send your money at a lower cost.
• Get your money where it needs to go. Whether you’re sending money to help a friend and family member or is simply making a purchase, your money transfers allow you to take charge of your economy and control your spending.

CONS

• Fluctuating exchange rates. Changing rates can take a big chunk out of what your recipient ultimately receives.
• Fees. You’ll typically pay a transfer fee when you send money overseas.
• Can be unsafe. You’ll want to look for a trusted provider that can guarantee the security of your personal and financial details.

What are the options?

The best service for transferring money abroad depends on the situation. For example, some services offer better terms for large amounts of money, however, the high fees make them less suitable when transferring smaller amounts of money.

When choosing between banks, money transfer providers and other payment companies, you’ll want to compare currency exchange rates, transfer fees, transfer options and other features to find the best value and most secure method.

Your options for sending money abroad:

1. International bank transfers.Most banks can offer safe international money transfers. They are usually good for large amounts of money that needs to be moved quickly. The downside is that they often charge high transfer fees and a weak exchange rate.
2. Online money transfer services.As specialists in this field, these companies usually charge lower transfer fees than the banks, and you can easily manage your transactions from home.

Some online money transfer providers:

• Transferwise: An easy sign up process and simple one-click transfer system. Transferwise saves both yours and the recipients details so that you can quickly perform repeat transfers. This platform offers some of the best exchange rates.
• Xoom: Xoom is owned by PayPal and is easy to use. It allows you to send money from a laptop or mobile to more than 70 countries. It includes multiple delivery options and covers developing countries as well.
• OFX: No transfer fees and they offer favourable rates.
• MoneyGram: The second largest money transfer company in the world, with 350,000 locations in more than 200 countries.

3. Providers with cash pickup. Trusted providers like Western Union and MoneyGram offer your recipient fast access to the cash you send — sometimes within minutes. You can pay online or at one of thousands of locations worldwide. However, this service typically costs more than an online transfer and the prices can vary depending on the transfer destination and method of payment.
4. PayPal transfers. PayPal is not only a good platform for online purchases, they also offer international money transfers to more than 100 countries and supports multiple currencies. Their exchange rates are often better than those you’ll get from a bank, but not quite as strong as the rates from money transfer companies. PayPal calculates its transfer fee as a percentage of the amount you’re sending — meaning it’s often better for sending smaller amounts of money.
5. Checks and money orders.Although not a quick option, you could send an international check overseas, obtained from your bank. This is one of the pricier options — you’ll have to purchase the check, and your recipient may be charged a fee by their own bank when cashing the check.

How to minimise costs when transferring money abroad?

• Compare exchange rates. Use your currency’s mid-market rate as a baseline to compare against the rates you’re offered. You want a provider whose rate is closest to that.
• Send more money per transfer. Many providers discount transfer fees or waive them altogether when you send larger amounts (except for when using PayPal).
• Look for hidden fees. Avoid surprises by checking the small print for fees that could apply to your transfer, including charges the recipient may need to pay at the other end.
• Sniff out special offers. Keep an eye on promotions, such as reduced or no fees on your first transfer. You could end up with a new preferred service.
• Shop around. The best way to save is by comparing rates, fees and transfer speeds of each provider, closely looking at their benefits and drawbacks.