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.
The biggest consideration when using TransferWise are their fees which are usually percentage based. This makes smaller transfers very cheap but the fee can really add up when sending more than $40,000.
Everything You'll Need to Know Before Using TransferWise
In this Transferwise Review, we’ll cover:
Pros and Cons
TransferWise fees and charges
Using TransferWise: How does it work?
Final Verdict
Pros
- Offers a very clear and simple fee structure
- Less risk – with certainty on what exchange rate you will receive
- Online convenience
- Ability to pay funds using various payment options (including payment via credit cards and debit cards in many cases)
- It’s new feature Transferwise Borderless Account and the TransferWise Debit Card
Cons
- Cannot pay via cash or cheque
- Because TransferWise is still a fairly new addition to the foreign exchange market, there are currently a number of global currencies they do not currently support. That may change in the future.
Related Video: The 2018 TransferWise Review
Learn More About TransferWise
Transferwise fees and charges
Transferwise charge in 2 ways – a transfer fee plus an exchange rate margin
1. Transfer Fee  |
2. Exchange Rate Margin  |
| TransferWise charge a $2 minimum fee; otherwise, the fee is 0.7% of the amount converted up to $10,000 and 0.5% for amounts over $10,000 (with the 0.7% still applying to the first $10,000). For more information click here | TransferWise are famous for using the exact same rate that you see on Google. This is called the mid-market rate and is the rate that currency is bought and sold around the world. TransferWise is the only provider on the market to use the real rate. |
Using TransferWise: How does it work?
To make a transfer with TransferWise, there 3 steps
- Set up your account – Thankfully, you only have to do this once. You'll have to register your details like name, address email and provide some identification.
- Make your transfer – You'll need to enter the bank account details of the person you are transferring the money to. This is also when you lock in the exchange rate
- Pay for your transfer – Before the money is transferred overseas, you'll need to pay for it. All companies offer their bank account details for a direct bank transfer. Most companies offer Bpay and some even allow you to pay using a debit or credit card.
If you would like a more in-depth guide on how it works, click on these guides:
How to Transfer Money to a Bank Account Overseas Using TransferWise
How to Receive Money from Overseas Using TransferWise
Related Video
The TransferWise Borderless Account
The TransferWise Borderless Account is a multi-currency account with a twist. As well as being able to hold many different currencies, it also lets you have local bank details in the US, UK, Eurozone and Australia. So you can make and receive payments in those countries as if you had a bank account there.
To read our full review of the Borderless Account, click here.
On top of this, there is also a Debit Card that is slowly being introduced. It has officially been released for UK and European customers and we hope to see it in Australia soon. To read more about the debit card, click here.
Final Verdict
Is TransferWise a good option to transfer money overseas?
If you want to avoid paying high fees and you want to get the best exchange rate, then yes, Transferwise is a fantastic way to transfer money overseas.
The Currency Shop says:
- Transferwise is cheap, reliable and their service is fairly quick.
- Their exchange rates are unbeatable – this is because they offer the mid market exchange rate (which is the rate you see on google or xe.com).
- Use our comparison table to compare foreign exchange rates, fees and services of other providers.
- You can read our step by step guide on how to transfer money with Transferwise, here.
Learn More About TransferWise
Frequently asked questions (FAQs)
TransferWise sends over one and a half billion dollars a month for over a million customers worldwide. In Australia, TransferWise is regulated by ASIC and their Australian Financial Service Licence is 456295.
TransferWise has an office on Martin Place in Sydney and is registered as TransferWise Limited in the United Kingdom. TransferWise is not publicly traded but its investors include Virgin Group’s Richard Branson and leading investment firm Andreessen Horowitz.
To transfer any money overseas using TransferWise, simply visit their website and create an account. Your account is completely free and set up is easy. You can also read this step by step guide that goes through how to sign up and use Transferwise.
In order to send your money overseas, you simply send your money to TransferWise’s local bank account. From there, they send the funds to your recipient from their local account in the country you want to send money. You can send funds in a number of different ways such as a bank transfer, POLI transfer, or using a debit or credit card.
TransferWise charge a $2 minimum fee; otherwise, the fee is 0.7% of the amount converted up to $10,000 and 0.5% for amounts over $10,000 (with the 0.7% still applying to the first $10,000). For more information click here.
TransferWise currently accepts credit card payments for sending money from GBP, EUR, AUD, NZD, CHF, PLN, NOK, SEK and DKK.
The maximum amount for credit card payments to TransferWise from each available currency are listed here: 2000 GBP, 2500 EUR, 3500 AUD, 4000 NZD, 3500 CHF, 10,000 PLN, 20,000 NOK, 20,000 SEK and 20,000 DKK.
Be aware that, although it seems convenient, paying your funds to TransferWise using a credit card does carry an additional handling fee of 0.3% for GBP, DKK, NOK and SEK, 0.4% for EUR, 0.5% for PLN, as well as 2% for both AUD and NZD.
Check with your bank about any additional fees for using credit card payments as a cash withdrawal.
TransferWise do accept credit card payments via Visa and MasterCard.
Be aware that the name on your credit card must be identical to the name on your TransferWise account. If the name does not match, the transfer will be delayed and may even be cancelled.
United Kingdom (GBP), Euro (EUR). United States (USD), Australia (AUD), Brazil (BRL) , Bulgaria (BGN), Canada (CAD), Croatia (HRK), Czechia (CZK), Denmark (DKK), Hong Kong (HKD), Hungary (HUF), Japan (JPY), New Zealand (NZD), Norway (NOK), Poland (PLN), Romania (RON), Singapore (SGD), Sweden (SEK), Switzerland (CHF), Bangladesh (BDT), Chile (CLP), China (CNY), Colombia (COP), Georgia (GEL), Indonesia (IDR), India (INR), Israel (ILS), Malaysia (MYR), Mexico (MXN), Morocco (MAD), Pakistan (PKR), Peru (PEN), Philippines (PHP), Russia (RUB), South Africa (ZAR), South Korea (KRW), Sri Lanka (LKR), Thailand (THB), Turkey (TRY), United Arab Emirates (AED), Ukraine (UAH), Vietnam (VND)
Related Link: Click here to visit the Transferwise website
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