Peer to peer money transfer companies like TransferWise and CurrencyFair have introduced a better and cheaper way to transfer money internationally. But which service will save you even more for your exchange and suit your transfer needs? Find out whether it is a good option to use TransferWise or CurrencyFair in this comparison.
What you'll find in this review
- Safety
- Exchange Rates
- Fees
- TransferWise and CurrencyFair Sign Up And Transfer Process
- Accepted Payment Types, Min & Max Amounts
- Business Payments
- Supported Currencies & Countries
- Transfer Speed With TransferWise and CurrencyFair
- Customer Support
TransferWise is a peer to peer money transfer service that is often recognised for its fast transfers and bank-beating exchange rates and fees. The company's headquarters is located in London and has offices in New York and Tallinn.
CurrencyFair is a foreign exchange marketplace. Its headquarters is located in Ireland and they have offices in Australia and UK. They offer currency exchange and money transfer services for individuals and businesses alike. CurrencyFair is able to offer low transfer fees and competitive exchange rates as it trades currencies on a peer to peer transfer.
Safety
The Australian Securities and Investments Commission (ASIC) is the government body that ensures and regulates fair and transparent conduct of financial services. Every company offering financial services must be granted an Australian Financial Service (AFS) licence by ASIC to carry out business in Australia.
| TransferWise | CurrencyFair |
|---|---|
|
Regulated by ASIC Registered with AUSTRAC |
Regulated by ASIC |
|
Australian Financial Service Licence 456295 AUSTRAC Registration Number 168331191 |
Australian Financial Service Licence 402 709 |
Winner: Tie. Both companies hold an AFSL and are regulated by ASIC. In order for either companies to provide financial services legally, they must be registered with the Australian government body.
Exchange Rates
Like banks, money transfer providers make money in two main ways: Firstly, the margin from which they purchase currency at a wholesale rate and the cost of currency sold on to customers. Secondly, an additional transaction fee.
However, TransferWise is unique in that they sell currency based on the mid-market (wholesale) exchange rate and make money through fees.
Exchange rates are constantly changing. That's why comparing your options is one of the most important factors to consider before making a transfer. Here are three ways you can compare current exchange rates:
- View live rates on TransferWise and CurrencyFair websites
- Call CurrencyFair at +61 (0) 282 798 642 (within Australia)
- Contact TransferWise through the Live Chat feature on its website
- Compare exchange rates online with our comparison engine
Winner: TransferWise. Their rates are unbeatable as they offer the real mid-market rate.
Compare Australian Banks and Money Transfer Specialists
Fees
Money transfer providers make a profit from every transaction, even when no fees are charged. So it's just as important to compare fees as well as exchange rates. Note that a deposit fee or correspondent bank fee may be charged by the recipient's bank.
| TransferWise | CurrencyFair |
|---|---|
|
0.7% of transfer amounting up to AUD 10,000 (minimum fee AUD 2) |
Peer to peer exchange: AUD 4 flat fee + 0.15% of transfer amount |
|
0.7% on initial AUD 10,000 plus 0.5% on anything over |
Quick Trade method: AUD 4 flat fee + 0.4% to 0.5% of transfer amount |
Winner: TransferWise. Their fees are generally lower than CurrencyFair's.
Just remember, that money transfer services make a profit from two factors: exchange rate margin and fees.
TransferWise offers the real mid-market exchange rates and makes their money in fees. CurrencyFair makes their money from a mark up on the mid-market rate and fees.
Related: How Much It Really Costs To Transfer Money Overseas
TransferWise and CurrencyFair Sign Up And Transfer Process
To transfer money overseas with either of the providers, you must register an account. We review the steps for each provider below:
| TransferWise | CurrencyFair |
|---|---|
| 1. Sign up manually or with Google or Facebook account | 1. Register your details online |
| 2. Select currency type and amount | 2. Verify your identity with valid ID |
| 3. Fill in your details
|
3. Add your bank account details |
| 4. Provide recipient's details (you can also send to an email address) | 4. Provide beneficiary bank account details |
| 5. Transfer funds to TransferWise | 5. Add CurrencyFair's bank details to your bank account |
| 6. TransferWise receives funds and transfers to recipient | 6. Deposit funds to CurrencyFair |
Winner: TransferWise. Their interface is straight to the point and extremely user friendly. It only took a minute to register an account and about 10 minutes to make a transfer.
Accepted Payment Types, Min & Max Amounts
| TransferWise | CurrencyFair | |
|---|---|---|
|
Payment Types Accepted |
*Paying with any card carries a 0.6% fee |
|
|
Minimum Transfer Amount |
AUD 250 AUD 1000 (Over the phone) |
AUD 250 AUD 1000 (Over the phone) |
|
Maximum Transfer Amount |
AUD 1.8 million (via bank transfer) AUD 3500 (card payment) |
No Limit |
Electronic Funds Transfer
Winner: TransferWise is the winner in this category with a variety of payment options to make transfers.
Business Payments
Money transfers for business are supported on both TransferWise and CurrencyFair. However, both companies do not provide specific services like fee-free transfers, spot or forward exchange contracts and an assigned account manager for business which are available on OFX, TorFX or World First.
Winner: TransferWise. It is still cheaper to use their service as their fees are lower. However, CurrencyFair has a feature that let you set up recurring transactions.
Supported Currencies and Countries
This is an extensive list of currencies available for transfer on TransferWise and CurrencyFair. Note that TransferWise can send and receive the currencies listed below. There are certain currencies the company can only send. Find out more on their website.
| TransferWise | CurrencyFair | ||
|---|---|---|---|
| TransferWise can send and receive:
AUD – Australian Dollar BGN – Bulgarian Lev BRL – Brazilian Real CAD – Canadian Dollars CHF – Swiss Franc CZK – Czech Koruna DKK – Danish Krone EUR – Euro GBP – Great Britain Pound
|
HUF – Hungarian Forint
JPY – Japanese Yen NOK – Norwegian Krone NZD – New Zealand Dollar PLN – Polish Zloty SEK – Swedish Krona SGD – Singapore Dollar RON – Romanian Leu |
AED – United Arab Emirates Dirham
AUD – Australian Dollar CAD – Canadian Dollars CHF – Swiss Franc CZK – Czech Koruna DKK – Danish Krone EUR – Euro GBP – Great Britain Pound HKD – Hong Kong Dollar HUF – Hungarian Forint ILS – Israeli Shekel |
NOK – Norwegian Krone
NZD – New Zealand Dollar PLN – Polish Zloty SEK – Swedish Krona SGD – Singapore Dollar USD – United States Dollar ZAR – South African Rand |
Winner: Depending on the currency and country you are sending funds to, we'll let you decide who's the winner of this segment.
Transfer Speed With TransferWise and CurrencyFair
The transfer speed depends on the amount and type of currency, country of transfer and turnaround time of your bank to clear payment.
| TransferWise | CurrencyFair |
|---|---|
|
Between 1 – 3 working days |
Between 1 – 6 working days |
Winner: TransferWise. They are significantly more efficient with transfer speed than CurrencyFair.
Customer Support
Should you have any queries, you can contact CurrencyFair over the phone at +61 (0) 282 798 642 (within Australia).
With TransferWise, it was difficult to find their contact number. We had to use their live chat feature to get in touch with a consultant and received a response within 24 hours.
Winner: CurrencyFair. You can expect to receive faster response and support for any of your queries
Final Verdict
TransferWise is the overall winner.
Both companies excel in different areas. Dending on your needs, you may want to choose one over the other.
Generally, we found TransferWise easier to use. Their exchange rates are based on the mid-market rate and their fee structure is slightly cheaper than CurrencyFair.
Just remember to compare the exchange rates before you decide to transfer as rates change all the time.
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