Cheapest Ways to Send Money Internationally: Save Up to 90% on Fees

Sending money internationally through traditional banks can cost you 5-10% in fees and poor exchange rates. With global remittances exceeding $700 billion annually, these fees add up to massive profits for financial institutions. Fortunately, modern alternatives can reduce your costs by up to 90%. This guide reveals the cheapest ways to send money abroad while maintaining security and speed.

Cost Comparison: Traditional vs. Modern Methods

Example: Sending $1,000 USD to Europe

• Traditional Bank: $45-65 total cost (fees + poor exchange rate)
• Western Union: $35-55 total cost
• Online Services: $5-15 total cost
• Cryptocurrency: $2-8 total cost
• Multi-currency accounts: $0-5 total cost

Top 5 Cheapest International Money Transfer Methods

1. Online Money Transfer Services

Best options: Wise (formerly TransferWise), Remitly, WorldRemit

Wise - The Overall Winner:

• Fees: 0.35-2% depending on funding method
• Exchange rates: Real mid-market rate
• Speed: Minutes to 2 business days
• Coverage: 80+ countries
• Best for: Regular transfers, transparency

Remitly - Best for Developing Countries:

• Fees: $0-5 depending on speed
• Exchange rates: Competitive margins (1-3%)
• Speed: Minutes to 5 days
• Coverage: 170+ countries
• Best for: Family remittances, cash pickup

2. Multi-Currency Bank Accounts

Best options: Revolut, N26, Charles Schwab

Revolut Premium/Metal:

• Fees: Free up to monthly limits
• Exchange rates: Interbank rates weekdays
• Speed: Instant for EUR/USD/GBP
• Best for: Frequent travelers, multiple currencies

3. Cryptocurrency Transfers

Best for tech-savvy users with crypto knowledge

Stable Coin Method (USDC, USDT):

• Fees: $2-10 network fees
• Exchange rates: No conversion needed
• Speed: 5-30 minutes
• Risks: Requires recipient crypto knowledge

Process:

1. Buy stablecoins on Coinbase/Binance
2. Send to recipient's crypto wallet
3. Recipient converts to local currency
4. Total cost: Usually under 1%

4. International Broker Services

Best for large amounts ($10,000+)

XE Money, OFX, TorFX:

• Fees: No transfer fees
• Exchange rates: 0.5-2% margin
• Speed: 1-4 business days
• Best for: Property purchases, large investments

5. Hawala Networks (Informal Transfers)

Traditional system popular in Middle East/South Asia

• Fees: 1-3% typically
• Speed: Same day
• Risks: Unregulated, legal concerns
• Best for: Specific regions with established networks

Money Transfer Strategies by Amount

Small Amounts ($50-500)

1. Wise: Lowest total cost
2. Remitly Economy: Good for specific corridors
3. XRP/Stellar crypto: If both parties have wallets

Medium Amounts ($500-5,000)

1. Wise: Still most cost-effective
2. Online brokers: Compare rates for large amounts
3. Multi-currency accounts: If you have premium accounts

Large Amounts ($5,000+)

1. Currency brokers: XE Money, OFX
2. Wise: For transparency
3. Negotiate with banks: Volume discounts possible

Hidden Costs to Watch For

Exchange Rate Markups

• Banks typically add: 2-4% to exchange rates
• Real rate check: Use XE.com or Google
• Markup calculation: (Service Rate - Real Rate) / Real Rate × 100

Intermediary Bank Fees

• Correspondent banks: May charge $15-25
• SWIFT fees: Additional network charges
• Receiving bank fees: Often passed to recipient

Funding Method Costs

• Credit cards: 2-3% cash advance fees
• Debit cards: Usually cheapest option
• Bank transfers: Free but slower
• Cash: Best rates but inconvenient

Speed vs. Cost Trade-offs

Instant (0-15 minutes)

• Cost: Highest fees (3-8%)
• Methods: Western Union, MoneyGram, crypto
• Best for: Emergencies only

Fast (1-4 hours)

• Cost: Moderate fees (1-3%)
• Methods: Wise Fast transfer, Remitly Express
• Best for: Urgent but not emergency

Standard (1-3 days)

• Cost: Lowest fees (0.5-1.5%)
• Methods: Wise, online brokers
• Best for: Regular transfers

Country-Specific Best Options

Europe (EUR)

1. Wise (best overall)
2. Revolut (if premium member)
3. SEPA transfers (EU residents)

United Kingdom (GBP)

1. Wise
2. CurrencyFair
3. Azimo

India (INR)

1. Remitly
2. Wise
3. Western Union (for cash pickup)

Philippines (PHP)

1. Remitly
2. WorldRemit
3. Wise

Mexico (MXN)

1. Remitly
2. Xoom (PayPal)
3. Wise

Safety and Security Considerations

Regulated Services Only

• FCA regulated (UK): Wise, WorldRemit
• FinCEN registered (US): Most major services
• Check licensing: Before using any service

Protection Measures

• Segregated accounts: Your money kept separate
• Insurance coverage: Up to certain limits
• Two-factor authentication: Always enable
• Transaction limits: Start small to test

Tax Implications

Reporting Requirements

• US FBAR: Foreign accounts over $10,000
• Large cash transactions: Over $10,000 reported
• Gift taxes: May apply to family transfers
• Currency gains: Potentially taxable

Money Transfer Optimization Tips

1. Compare Real-Time Rates

• Use comparison sites like SaveOnSend
• Check rates before initiating transfer
• Consider rate alerts for large amounts

2. Time Your Transfers

• Avoid weekends: Higher crypto spreads
• Market hours: Better rates during business hours
• Forward contracts: Lock in rates for future transfers

3. Bundle Transfers

• Send larger amounts less frequently
• Combine family member transfers
• Use limit orders for better rates

4. Leverage Referral Programs

• Wise: Fee-free transfers up to certain amounts
• Remitly: Bonus rates for new users
• Many services offer friend referral bonuses

Common Mistakes to Avoid

1. Using only your bank: Most expensive option
2. Not comparing real costs: Focus on total cost, not just fees
3. Rushing urgent transfers: Plan ahead when possible
4. Ignoring exchange rate timing: Rates fluctuate constantly
5. Not checking recipient fees: Some banks charge for incoming transfers

The Bottom Line

The cheapest way to send money internationally depends on your specific needs, but Wise consistently offers the best combination of low costs, transparency, and reliability for most users. For regular transfers, switching from banks to online services can save you hundreds or thousands of dollars annually. Remember to factor in both fees and exchange rate margins when comparing options. Start with small test transfers to verify the service works well for your specific corridor before sending larger amounts.