how much it costs to transfer money overseas articleTransferring money overseas is full of hidden costs. Exactly how much it costs to transfer money overseas differs between money transfer providers.

In this article, we review the fees and exchange rates of the most widely used banks and money transfer companies.

At the end of the day, the total cost comes down to two common fees:

  1. Exchange Rates: There is no “standard” exchange rate. Each bank will offer you a different exchange rate based on the currency you want to send overseas and the amount you need to send.
  2. Transfer Fee: Every Australian bank and money transfer company will charge you a different fee to send money overseas. Usually it’s between $10 and $32.

 


 

Compare The Total Cost to Transfer Money Overseas

Find the Cheapest Way to Transfer Money and Save

Provider Exchange
Rate
Transfer
Fee
Transfer
Time
Total (AUD) Rates last updated August 15 2018
XERead Review 0.7209 $0.00 2-3 Days $13,871.28Lowest Cost Option Go to site Read Review
So, sending USD 10,000 to United States at an exchange rate of 0.7209 will cost you $13,871.28 with no fees.

About XE

XE is a well known and trusted name in the money transfer industry. With over twenty years experience, they now help 33,000 people and 2,000 businesses make transfers each year. Over 60 currencies can be transferred with XE and they pride themselves on the free tools and transparent rates they offer. Click here to read the full review

Pros

  • Well known and trusted brand.
  • Very informative website. Extensive information on currency and money transfers.
  • XE App is available on both iOS and Android. It allows you to see the interbank rate for over 100 currencies.
  • XE themselves charge no fees for international money transfers.
  • Offers support for both individuals and businesses when it comes to international money transfers.

Cons

  • Cannot pay via cash or cheque. Must pay via bank transfer, BPay is also accepted in Australia.
  • Maximum transfer amount is $500,000USD.
  • While XE compares more than 100 currencies, there are only 60 that are available for money transfers.

TransferwiseRead Review 0.7241 $63.65 1-2 Days $13,873.90$2.62 more expensive Go to site Read Review
So, sending USD 10,000 to United States at an exchange rate of 0.7241 will cost you $13,873.90 which includes a fee of $63.65

About TransferWise

Transparency and an easy online experience are the 2 things that set TransferWise apart from the banks and other money transfer companies. If you prefer to bank online, you'll like TransferWise. Setting up an account and making a transfer is very easy. They are also very clear on the exchange rate and fees you'll pay before you make a transfer. Click here for the full review

Pros

  • Clear and transparent exchange rates fees
  • The online experience is first class
  • Like the banks, they are regulated by ASIC and registered with AFSL
  • Constantly bringing out new innovative products

Cons

  • There are currently a number of global currencies they do not currently support
  • Limited support based in Australia
  • Percentage based fee can add up on very large transfers

WorldFirstRead Review 0.7198 $0.00 2-3 Days $13,893.61$22.33 more expensive Go to site Read Review
So, sending USD 10,000 to United States at an exchange rate of 0.7198 will cost you $13,893.61 with no fees.

About World First

World First was founded in 2004 in the UK and has grown rapidly with offices now in the U.S., Canada and throughout Asia. They consistently receive strong customer reviews and in a recent study, 98% of their clients said they would use them again.World First have a strong online offering, particular for businesses selling online. They do provide local support as well with offices in Sydney. Click here to read the full review

Pros

  • Low fees and great exchange rates
  • Safe and secure transfers
  • Regulated by ASIC and registered with AFSL
  • Great for personal and business payments

Cons

  • Does not accept BPAY, credit card, cheque or cash
  • Limited currencies available

TorFXRead Review 0.7198 $0.00 2-3 Days $13,893.61$22.33 more expensive Go to site Read Review
So, sending USD 10,000 to United States at an exchange rate of 0.7198 will cost you $13,893.61 with no fees.

About TorFX

TorFX are particularly good taking care of customers over the phone but using their website isn't the easiest to use. They don't charge a flat fee which is great but it's important to consider their exchange rates. While, they don't offer fantastic rates for small amounts under $2000 , TorFX offer exceptionally good exchange rates for larger transfers to the UK, New Zealand, South Africa and Europe.

Pros

  • No transfer fees
  • Highly competitive exchange rates
  • Secure transfers with authorised
  • Assigned account manager
  • 24 / 7 Assistance
  • Available range of transfer options

Cons

  • Limited exotic currencies available
  • Exchange rates on small transfers aren't great
  • Website experience could be better

HIFXRead Review 0.7198 $0.00 2-3 Days $13,893.61$22.33 more expensive Go to site Read Review
So, sending USD 10,000 to United States at an exchange rate of 0.7198 will cost you $13,893.61 with no fees.

About HiFX

HiFX are one of the biggest money transfer companies in the world. Their parent company Euronet is listed on the NASDAQ and recently acquired Xe.com. They are particularly useful for individuals doing regular transfers overseas. HiFX provide competitive exchange rates no matter how much is being transacted. Their $50 minimum transaction size and flat fee makes them a great option for any international payment. Locally, HiFX have Australian offices in Sydney, Melbourne and are expanding to the remaining capital cities. Click here to read the full review

Pros

  • Fantastic bank - beating exchange rates
  • Low fees for transactions less than $10, 000
  • No fees for transactions of $10, 000 or more
  • High security transfers regulated by ASIC and FMA
  • Fast and easy for personal or business accounts

Cons

  • Only electronic bank transfers accepted
  • Limited exotic currencies
OFXRead Review 0.7143 $0.00 1-3 Days $13,999.72$128.44 more expensive Go to site Read Review
So, sending USD 10,000 to United States at an exchange rate of 0.7143 will cost you $13,999.72 with no fees.

About OFX

OFX (formally known as Ozforex) is the largest Australian owned money transfer company. It launched in 1998 and grew rapidly until finally listing on the Australian Stock Exchange in 2013. OFX excels in 2 areas – Online experience and customer service. The company was born online and continues to develop easy, intuitive products. While OFX customers do most of their transactions online, they are backed up with exceptional customer service.

Pros

  • Better exchange rates compared to banks
  • Highly safe and secure transfers
  • 1 - 2 days delivery times for most countries
  • Quick response time
  • Fantastic customer service

Cons

  • Credit cards, cheques and cash are not accepted
  • Transfers to Thailand can take up to 4 days
  • Fees for transfers smaller transfers

ANZRead Review 0.7108 $0.00 1-2 Days $14,068.66$197.38 more expensive Go to site Read Review
So, sending USD 10,000 to United States at an exchange rate of 0.7108 will cost you $14,068.66 with no fees.
ANZ International Money Transfer is a secure and fast way to transfer money overseas.

Pros:

  • Fast transfers
  • Safe and secure
  • No fee for transfers under $10 000 via Internet banking

Cons

  • $12 fee for transfers under $10 000 via Internet banking
  • Poor exchange rates
  • 24 hour hotline not available

Commonwealth BankRead Review 0.6977 $12.00 1-2 Days $14,344.81$473.53 more expensive Go to site Read Review
So, sending USD 10,000 to United States at an exchange rate of 0.6977 will cost you $14,344.81 which includes a fee of $12.00
Commonwealth Bank provides secure and easy transfers to over 200 countries and more than 30 currencies.

Pros:

  • Fast transfers+ Easy transfers
  • Security guarantee covers any losses from unauthorised transactions

Cons

  • $6 fee for transfers under $1000 via Internet banking
  • $12 fee for transfers under $1000 via Internet banking
  • Poor exchange rates

WestpacRead Review 0.6972 $10.00 1-2 Days $14,353.09$481.81 more expensive Go to site Read Review
So, sending USD 10,000 to United States at an exchange rate of 0.6972 will cost you $14,353.09 which includes a fee of $10.00
Westpac is one of the big four banks in Australia offers speedy and secure transfers.

Pros:

  • Fast payment processing times
  • Secure transfers

Cons

  • Must be Westpac account holder
  • $20 fee for transfers via Internet or phone banking
  • $32 fee for transfers at an ANZ branch
  • Poor exchange rates

 


The Best and Worst: Quick Comparisons of Money Transfer Services

We compared a range of money transfer specialists and looked at their exchange rates, fees and services.

1. XE was one of only companies we found that was as big as a bank with no fee. They also had a better exchange rate than any bank we compared and offered sharper rates for larger amounts.

Best For:

  • Transfers to the UK, New Zealand and Europe
  • Larger amounts over $50,000
  • If you prefer talking to someone over the phone

Not Great If:

  • You are transferring less than $200
  • You prefer to do everything online
  • You make business transfers

To learn more about XE click here


2. TransferWise is one of the only money transfer companies in the world that offers the wholesale or interbank exchange rate. The downside is that they charge a percentage based service fee meaning the larger your transfer, the bigger the fee. As a result they are
an excellent, easy choice for smaller transfers under $10,000

Best For:

  • Transparent exchange rates and fees
  • Their Borderless Account
  • You prefer to do everything online

Not Great If:

  • You are transferring a significant amount of money
  • You prefer to have local phone support
  • You make business transfers

To learn more about TransferWise click here


 

Worldremit logo3. WorldRemit has grown into a global leader over the last few years. The website is incredibly easy to use, they
have no minimum amount and a range of payment options including debit and credit cards.

Best For:

  • Transfers to the India, the Philippines, South America and Africa
  • Transfers under $10,000
  • Sending money to family using a cash pick-up

Not Great If:

  • You need to send more than $10,000
  • You want to talk to someone locally
  • You make business transfers

To learn more about WorldRemit click here


 

4. OFX has a $10 fee for amounts under $10,000

While their exchange rates may not be as competitive as TorFX or TransferWise, getting started was the easiest of all the companies we compared. It’s also the only Australian company besides the banks that we compared.

Best For:

  • Setting up an account. It’s quick, easy and can be done online
  • Transfers over $10,000
  • Local phone and email support

Not Great If:

  • You want to know the exchange rate before you sign up
  • You are transferring less than $10,000
  • Transfers in CNY to China

To learn more about OFX click here


 

5. Paypal are also a good option when sending small amounts. This is because they charge fees as a percentage rather than a flat fee. You will pay a moderate fee (of 0.5% – 3.3%) if you’re transferring money between countries
and you use money from your PayPal account or a direct debit from a bank account linked to your Paypal account.


6. Using internet banking may not be the cheapest way to transfer money, but it is one of
the easiest and fastest. Also, the good news is that in the last 12 months, ANZ, CBA and NAB have all reduced their fee to transfer money overseas online. The bad news is that their exchange rates are still much worse than the likes of
OFX, TransferWise or TorFX. Heading to a branch is almost the same as using internet banking, just with a higher fee. Bank charges range between $30 and $32 dollars for the same service


 

So, What Does It All Mean?

The cost to transfer money overseas isn’t easy to calculate, but it can be easy to compare once you take into account both the exchange rate you are getting and include the fee that you are paying.

There is not one bank, company or payment method that is always going to be the cheapest.

Comparing your options based on your currency and amount is a good first step.

What you should know: This covers most common ways of sending money. it doesn’t cover EVERY single method of payment. Some, but not all of the companies mentioned are affiliated with The Currency Shop. If you choose to use any of
these companies, we may receive a referral fee. Exchange rates change constantly and so do the indicative quotes provided by currency exchange outlets. This information is not advice nor is it a recommendation in any way.

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