When it comes to money transfers, transferring larger amounts overseas is different.
If you are sending more than $20,000 internationally, it’s really important to choose the right way to transfer your money. Getting it wrong usually means you end up paying massive fees and charges.
Fees and charges: What to look for
While there are many fees you may be charged, these to are particularly important with bigger transfers
|1. Exchage Rate Margin||2. Transfer Fee|
|The exchange rate margin is by far the most common and most important thing to consider with larger money transfers. Simply put, the exchange rate margin is the difference between the wholesale rate you see on google or xe.com and the actual rate you receive.||Most banks will charge a flat fee to transfer money overseas between $18-32. Other money transfer companies like OFX or World First charge between $0 and $10. TransferWise charge a percentage based fee of between 0.5% and 0.7%|
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:
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.
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.
Choosing the best way to transfer your money overseas
The best way to transfer your money overseas really depends on the total cost.
The total cost of your transfer takes into account both your exchange rate and your transfer fee. To work out the total cost of your transfer, you’ll need to get a quote from each bank or money transfer company.
Alternatively, to use our comparison table that calculates and compares the total cost, click here
The Currency Shop says:
- Transferwise is one of the only options that will always give you the best (wholesale) exchange rate but the fee they charge is percentage based which can really add up for larger amounts.
- TorFX have some of the best exchange rates for larger transfers and they don’t charge a fee.
- If you are not sure which is the best option, use our comparison table.
- You can also call us on 1800 004 930 if you’d prefer to talk to someone
WATCH: How to Transfer Money to an Overseas Bank Account Without High the Fees
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