The cost of sending money overseas depends on the amount you’re sending and the method you’re using. For instance, banks charge different fees from what you will pay if you decide to do a money transfer online. Read on to find out more.
How to Send Money Abroad
There are several options for international money transfers. You can choose to use banks, foreign exchange brokers, or online money transfer firms. All these options come with their advantages and disadvantages. As a result, it’s advisable to consider all the necessary factors before you settle on any.
How Much Does It Cost To Send Money Internationally?
The total cost of sending money overseas depends on several features. Here are some factors to consider:
- Transaction Provider
The transfer fees vary greatly depending on the provider you choose to use. For instance, banks typically charge a fixed amount of money on every international money transfer. These fees depend on the amount you’re sending and the bank you’re using. Similarly, the currency may also affect the costs, especially if you need an expedition of the funds transferred. Most banks often charge $30 for a $500 transfer.
On the other hand, the costs you incur with transfer service depend on how you’re funding the transaction. Some may not charge you if you use the account balance. However, you will pay more for transfers you make from credit cards than when you use your bank account or debit card. The percentage typically ranges from 0.5% to 3.9%.
- Consider the Margin Exchange rate
Exchange rates also differ from one provider to the next. Most modern service providers’ exchange rates vary almost daily but do not cost much. On the other hand, most banks typically have a margin exchange rate of 5%.
- Does Recipient Incur Costs?
It’s worth noting that banks typically charge their customers a standard rate of $15 to $30 to receive their money transfers. Most service providers do not have this expense, but they weigh the options to be sure.
What Are The Cheapest Ways To Send Money Overseas?
The cheapest way to send money abroad depends on the amount you want to send, how fast you want your money to reach the destination, and the provider charges. Banks and traditional brick and mortar transfer agencies are some of the most costly options.
Online money transfer service providers are the most cost-effective options for sending money overseas. They charge lower transfer fees and offer fairer exchange rates compared to the traditional methods. It’s essential to shop a few before settling on one to ensure you’re getting the best rates and at fair costs. Here some options to consider.
- TransferWise
TransferWise boasts loads of positive reviews from verified users due to their high rates of exchange and services. The company has a transparent fee structure and ranks as one of the cheapest options.
- Western Union
Western Union is one of the most common names when international money transfer is in question. It is the largest and one of the oldest global money transfer companies, with branches in almost all countries worldwide. Their transfer fees and exchange rates vary depending on destination and type of transfer. Additionally, they’re fast and convenient for same-day deliveries and in-person transactions.
- WorldRemit
WorldRemit is one of the cheapest options. Their transfer fees may fall between $3 and #24, depending on the destination, the currency, and delivery options. However, they don’t deliver to pick-up locations.
- OFX
OFX is another option if you’re interested in low transfer fees. The company is famous for its strict identification and verification process; hence your registration may take time. However, once you have an account, you can easily send money abroad through your credit or debit cards, wire transfer, or bank account.
- Skrill
Skrill is a household name among crypto and tech-savvy enthusiasts. The company offers interbank exchange rates and doesn’t charge you anything to send money abroad.
The cost of sending money abroad depends on several factors. As a result, it’s essential to consider all the possible options and ensure that you don’t fall into scammers’ hands and receive fairer services.
