Mira StuartIf you’ve ever tried to transfer money abroad, you know how confusing and costly it can be. Banks often charge high fees, add hidden costs, or use poor exchange rates that make you lose more than you expect. Whether you’re sending money to family, paying for studies, or handling business abroad, every dollar matters.
The good news is that today, you have better and cheaper options. New online money transfer services make it easy to send funds quickly, safely, and at real exchange rates.
You can save a lot simply by comparing platforms and understanding how fees work before sending.
In this guide, you’ll learn smart, simple ways to transfer money abroad without losing money on hidden fees. (If you’re planning to work abroad, learn how to manage your salary safely in this guide).
By the end, you’ll know exactly what to look for, which tools to use, and how to make every international transfer cheaper and easier for you.
Why Transferring Money Abroad Can Be Expensive
When you transfer money abroad, it may seem like a simple process — you send money, and your recipient gets it. But behind the scenes, several hidden costs make international transfers more expensive than they appear.
First, most banks and traditional money transfer services charge high transaction fees. These can be flat fees or a percentage of the total amount you send. Even a small fee can add up if you send money often.
Second, the exchange rate markup is where many people lose the most. Banks rarely use the real market rate. Instead, they offer a lower rate and keep the difference as profit. This small margin can mean your recipient gets much less than expected.
Finally, there are hidden or receiving fees charged by intermediary banks or local institutions. These aren’t always shown upfront, making it hard to know the true cost.
Best Ways to Transfer Money Abroad Cheaply
When it comes to finding the best ways to transfer money abroad cheaply, your goal is to send more of your money to your recipient — not lose it in fees and poor exchange rates.
Below are four proven strategies to help you save money and make your international transfers smooth, fast, and affordable.
a. Use Online Money Transfer Services
One of the smartest ways to transfer money abroad cheaply is by using trusted online money transfer services.
Companies like Wise (formerly TransferWise), Revolut, Remitly, and PaySend have changed how people send money overseas.
Unlike traditional banks, these fintech platforms use real mid-market exchange rates — the same ones you see on Google. This means no hidden markups or unfair rates.
Most online services charge small, transparent fees that you can see before you send your money. You’ll also know exactly how much your recipient will receive. Transfers are usually completed within minutes or a few hours, depending on the country and payment method.
Another major advantage is convenience. You can complete the entire process on your phone or laptop without visiting a bank. These platforms are secure, regulated, and easy to use.
By switching to online transfer services, you can transfer money abroad faster and at a much lower cost than through traditional banking systems.
b. Compare Exchange Rates Before Sending
Exchange rates change every day, and even a small difference can affect how much money your recipient gets. That’s why comparing rates before you transfer money abroad is one of the most effective ways to save.
Banks and money transfer services set their own exchange rates, often adding a hidden margin. For example, the real exchange rate might be 1 USD = 0.85 EUR, but your bank could offer 0.82 EUR — meaning your recipient loses money on every dollar you send.
To avoid this, always check the mid-market rate, which is the real rate used between banks. Then, compare what each provider offers.
Websites and apps like Wise Rate Tracker, Monito, or CurrencyFair make this comparison quick and simple.
You can also set rate alerts to notify you when rates improve. Sending money at the right time can save you even more.
With a bit of planning, you can make sure you’re getting the best possible deal every time you transfer money abroad.
c. Avoid Banks for Small Transfers
If you’re sending a small amount, using a bank might not be the best choice. Banks tend to charge fixed international transfer fees, which can be high compared to the amount you’re sending.
For instance, if a bank charges $25 per transfer and you’re only sending $200, you’re losing over 10% of your money right away.
In addition, banks usually apply poor exchange rates and sometimes involve several intermediary banks, each taking a small fee along the way. This means your recipient could end up receiving far less than you expected.
For smaller amounts, using online money transfer services or digital wallets like Wise, Remitly, or WorldRemit is a smarter option.
These platforms are designed for smaller, faster, and cheaper transfers. They show you the total cost upfront, so you know exactly what you’re paying.
Avoiding banks doesn’t mean sacrificing safety. Most of these services are regulated by financial authorities and use encryption to protect your transactions.
If you want to transfer money abroad efficiently, it’s better to skip the traditional bank route and choose a modern, low-cost alternative.
d. Choose the Right Time to Send Money
Timing can make a big difference when you transfer money abroad. Exchange rates rise and fall throughout the day based on global market activity.
Sending money when the rate is unfavorable means your recipient gets less. The trick is to send money when your currency is stronger compared to the recipient’s currency.
Keep an eye on currency exchange trends using websites like XE.com, OANDA, or Google Finance. These sites show live rates and historical charts, helping you spot the best time to send.
You can even set rate alerts to get notifications when the exchange rate hits your target.
It’s also smart to avoid sending money on weekends or public holidays. During these times, banks are closed, and transfers may be delayed or processed at less favorable rates.
If your transfer isn’t urgent, wait for a better rate. This simple step can save you a lot over time, especially if you send money regularly.
Choosing the right moment means you can transfer money abroad more effectively and make sure your recipient receives the maximum value from every transaction.
How to Avoid Hidden Fees
Hidden fees are one of the biggest reasons people lose money when they transfer money abroad. These fees can appear as poor exchange rates, service charges, or receiving bank fees that aren’t clearly shown at first.
To avoid them, always check the total amount your recipient will receive before confirming your transfer.
Be cautious of services that advertise “zero fees.” They often make money by giving you a weaker exchange rate. Instead, choose providers that show transparent pricing and use the real exchange rate, also known as the mid-market rate.
It’s also wise to read the fine print carefully. Some banks and platforms charge extra if the transfer goes through intermediary banks or if the recipient’s account is in another currency.
Frequently Asked Questions About Transfering Money Abroad
Here are 10 common questions people ask when they want to transfer money abroad safely and cheaply:
1. What is the cheapest way to transfer money abroad?
Using online money transfer services like Wise, Remitly, or Revolut is often the cheapest option because they use real exchange rates and low, transparent fees.
2. Are online money transfer services safe?
Yes. Trusted providers are regulated by financial authorities and use encryption and identity checks to keep your money and information secure.
3. How long does it take to transfer money abroad?
Transfers can take anywhere from a few minutes to a few days, depending on the service, destination country, and payment method.
4. Can I track my international money transfer?
Most online platforms allow you to track your transfer in real time through their website or mobile app.
5. Why do banks charge more for international transfers?
Banks often use outdated systems, involve multiple intermediary banks, and add exchange rate markups — all of which increase costs.
6. What are hidden fees in money transfers?
Hidden fees can include poor exchange rates, intermediary bank charges, or receiving fees that reduce the total amount your recipient gets.
7. How can I get the best exchange rate?
Compare rates on websites like Monito or XE.com, and choose providers that offer the mid-market exchange rate without added margins.
8. Can I send money abroad with a credit card?
Yes, but it’s usually more expensive. Credit card transfers often include cash advance fees and higher interest rates.
9. What information do I need to transfer money abroad?
You typically need the recipient’s full name, bank account number, bank name, SWIFT/BIC code, and sometimes their address.
10. How do I know if I’m getting a good deal?
Always compare the total cost, not just the transfer fee. Look at the exchange rate, speed, and what your recipient actually receives. That’s the true measure of value when you transfer money abroad.
Final Thoughts
You don’t have to lose money every time you transfer money abroad.
By using trusted online transfer services, comparing exchange rates, and watching out for hidden fees, you can keep more of your hard-earned money.
The key is to stay informed and always check the total cost before sending. Even small savings add up over time, especially if you send money regularly.
Choose transparent platforms, send at the right time, and avoid expensive bank transfers. With a little attention, you can make every international transfer cheaper, faster, and stress-free, ensuring that more money reaches the people who matter most.
Mira Stuart
