When it comes to sending money from Australia to other parts of the world, there’s never been more choice. Banks, payment providers, currency exchanges, and online specialists all let you exchange money to different currencies and send it internationally. With all of this choice, it can be difficult to compare providers so you know you’re getting the best deal.

1000 USD

Well, good news, we’ve done the work for you. We’ve run the numbers and are happy to compare and share just how far your $1,000 AUD will go depending on which currency exchange provider you choose. We’ll also let you know what to look for when it comes to avoiding high fees, poor exchange rates, and other hidden costs.

Let’s get into it.

 

The costs of sending money overseas

There are four main areas that affect how much your $1,000 will be worth in another currency, and the type of deal you’ll get.

Cost to transfer $1000 overseas

  1. The baseline exchange rate
  2. Differences between the baseline exchange rate and the rate quoted by the currency exchange
  3. A commission fee
  4. A flat fee

1 — The baseline exchange rate

The exchange rate tells you how much one currency is worth when you exchange it to another currency. For example, in early 2017, $1,000 AUD was worth around $755 USD. Exchange rates fluctuate all the time, depending on world events, the economic strength of the currency, and thousands of other factors. The baseline exchange rate between two currencies is known as the “mid-market” or “interbank” rate.

 

2 — Differences between the baseline exchange rate and the rate quoted by the currency exchange

You’ll never get the mid-market, or baseline rate from a currency exchange. Many currency exchanges make their money off of small differences between the mid-market rate and the rate they offer. For example, the exchange rate between $AUD and $USD could be:

  • 0.755 — mid-market exchange rate.
  • 0.750 — Currency provider exchange rate.
  • 0.735 — Bank exchange rate.

3 — A commission fee

Some currency exchangers and banks charge an additional commission fee on top of the exchange rate. This could be between 1% and 5% and would reduce the amount of money in the new currency by that much.

 

4 — A flat fee

 

Other currency providers and banks might charge a flat fee for exchanging money. That could amount to:

  • Banks — $30 to $50.
  • Currency providers — $10 to $15.

With all of these different exchange rates and fees, it’s no wonder the world of currency exchange can be confusing. That’s why below, we show how much your money will really be worth once all the fees are taken out.

We’ll show you how much your $1,000 AUD would be worth in US dollars through each of the various providers. All of these rates are correct as of early 2017.

 


 

How to Find the Cheapest Way to Transfer Money Overseas

Compare The Total Cost

The total cost of the transfer comes down to 2 things:

Money transfer fees

1. Transfer Fees

Every Australian bank and money transfer company will charge you a different fee to send money overseas. Usually it’s between $10 and $32.

Exchange rate margin fees

2. Exchange Rate Margin

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.

Provider Exchange
Rate
Transfer
Fee
Transfer
Time
Total (AUD) Rates last updated October 17 2018
TransferwiseRead Review 0.7118 $64.72 1-2 Days $14,113.61Lowest Cost Option Go to site Read Review
So, sending USD 10,000 to United States at an exchange rate of 0.7118 will cost you $14,113.61 which includes a fee of $64.72

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

TorFXRead Review 0.7082 $0.00 2-3 Days $14,119.49$5.88 more expensive Go to site Read Review
So, sending USD 10,000 to United States at an exchange rate of 0.7082 will cost you $14,119.49 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

XERead Review 0.7080 $0.00 2-3 Days $14,125.17$11.56 more expensive Go to site Read Review
So, sending USD 10,000 to United States at an exchange rate of 0.7080 will cost you $14,125.17 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.

WorldFirstRead Review 0.7075 $0.00 2-3 Days $14,133.69$20.08 more expensive Go to site Read Review
So, sending USD 10,000 to United States at an exchange rate of 0.7075 will cost you $14,133.69 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

HIFXRead Review 0.7075 $0.00 2-3 Days $14,133.69$20.08 more expensive Go to site Read Review
So, sending USD 10,000 to United States at an exchange rate of 0.7075 will cost you $14,133.69 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
WorldRemitRead Review 0.7047 $3.99 1-2 Days $14,195.43$81.82 more expensive Go to site Read Review
So, sending USD 10,000 to United States at an exchange rate of 0.7047 will cost you $14,195.43 which includes a fee of $3.99

About WorldRemit

WorldRemit are particularly good for transfers under $10,000 to destinations across Asia, Africa and South America. Sending money online is significantly easier than using companies like Western Union or Moneygram and their exchange rates and fees are clear and transparent. With 2 million users, WorldRemit has a focus on improving access to remittances for the billions people worldwide who don’t have access to banking. Because of this, WorldRemit has a number of ways to both make and receive transfers. They concentrate on servicing individual needs as opposed to businesses. Click here for the full review

Pros

  • They have a great network in Asia and Africa and number of receiving options like cash-pick up or bank transfer.
  • They are clear about their exchange rates and fees
  • No minimum amount

Cons

  • Maximum transfer sizes for every transfer
  • No support for business customers
  • They are not licensed to provide financial advice.
OFXRead Review 0.7020 $0.00 1-3 Days $14,245.01$131.40 more expensive Go to site Read Review
So, sending USD 10,000 to United States at an exchange rate of 0.7020 will cost you $14,245.01 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 0.6890 $0.00 1-2 Days $14,513.79$400.18 more expensive Go to site Read Review
So, sending USD 10,000 to United States at an exchange rate of 0.6890 will cost you $14,513.79 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 0.6728 $12.00 1-2 Days $14,875.26$761.65 more expensive Go to site Read Review
So, sending USD 10,000 to United States at an exchange rate of 0.6728 will cost you $14,875.26 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


 

Transferring $1,000 overseas via your bank

A bank is one of the least efficient ways to transfer money. In addition to high fees (often as much as $50), you won’t be getting effective exchange rates. Transferring $1,000 AUD to USD will get you around $680 US dollars once fees and exchange rates are taken into account.

 

Transferring $1,000 overseas via PayPal

Although PayPal is quick and easy, it’s notoriously bad value. Poor exchange rates and very high commission fees mean that your $1,000 AUD will become about $700 USD after PayPal takes its fees and commission.

 

Transferring $1,000 overseas through a dedicated currency exchange provider

The best deals on transferring money overseas are via a dedicated currency exchange provider. They make their money on the sheer volume of transactions they process, meaning their fees on individual transfers are very competitive. Here are how three of the biggest currency providers — OFX, World First, and HiFX stack up.

 

  • OFX — $1,000 AUD would get you $740 with OFX, including their $10 fee, saving you around $60 compared to a bank.
  • World First — $1,000 AUD would get you $742 with World First, including their $10 fee, saving you around $58 compared to a bank.
  • HiFX — $1,000 AUD would get you $737 with HiFX, including their $15 fee, saving you around $53 compared to a bank.

 

As you can see, you’ll always get a better deal using a dedicated currency provider. Even better, once you’ve setup your account, transferring money using one of these providers is fast, simple, and safe. We know you might still have questions, so you’ll find the answers below.

How safe is it to use a currency exchange provider?

The currency providers listed above have been in business for many years, and your money is protected if you decide to use them. The Currency Shop and these currency exchange providers hold Australian Financial Services Licences and are members of the Australian Financial Ombudsman Service.

Can I get fee free transfers?

Yes — Many of the currency providers offer you a fee free transfer when you first sign up. Additionally, some periodically give you fee free promotion periods, so your money goes even further. Take advantage of fee-free promotions to make your money go further.

 

Why should I use a provider instead of my bank?

Simply put, to save money. Using a currency provider just on $1,000 AUD can save you around $50 compared to using a bank. For larger amounts, those savings increase substantially.

 

Should I compare currency providers?

Absolutely. Different providers are better for different amounts of money. We let you compare currency providers easily, so you can find the best deal.

 

Is it easy to setup an account with a currency provider?

Yes. Signing up with a provider is simple, quick, and painless.

 

How quickly will my money be transferred?

It’s very quick. Money will typically be transferred in 2 – 4 working days.

Are you ready to save money on your international money transfers? Compare here  <link>, and make your money go further.

 

 

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Helping You Save Money on Currency

Buying travel money or transferring money overseas can be expensive and confusing. So how do you make the best choice and get the most out of your money?

An easy way is to use a comparison table for either international money transfers or currency exchange. These tables list and compare the banks with other large foreign exchange companies.

We’ve also put together tons of helpful videosguides and reviews that will help you make the right decision. You can work out a cheaper way of converting currency while still keeping your money safe.