The amount of money you are sending back to Australia is one of the most important factors when working out the most cost-effective way method of transfer.
To show you how the cheapest way will change depending on the amount, we've put together a table based of a transfer of 1000 US dollars
|Transfer Method||US dollar Amount||Exchange Rate||Fee||Total Received|
In different situations, it pays to use some banks, providers or payment methods over others. Here is a list of the most common situations:
If you are transferring more than $100,000 it is critical that you track down the best exchange rate from a company you know is safe and secure. TorFX is one of the largest foreign exchange companies in the world and importantly, they consistently have excellent exchange rates, particularly for large amounts.
Related Link: Click here to go to TorFX site
Buying or selling property comes with a lot of fees and costs. A lot of people overlook the transfer of money back Australia as one of the potential hidden costs.
Because it is usually a larger amount, you can lose thousands without even knowing it if you unknowingly choose the wrong way to transfer your funds.
Safety and a competitive exchange rate are paramount in this circumstance. OFX is an ideal choice for these transactions because each customer has an account manager that can guide them through each step. They are fully licenced and regulated in Australia and also offer the peace of mind of a global support network. They are also significantly cheaper than most other alternatives.
Related Link: Click here to go to the OFX site
Western Union is great for paying small amounts to family and friends. Unlike many other providers, they have a low minimum payment size, allowing Australians like you to transfer amounts both big and small. Western Union may be a cheaper alternative to using the bank or Moneygram due to their exchange rates. They also have more payment options than a money transfer company or a bank. You can pay by credit card and your relatives can receive the money into their bank account or in cash.
Living and working overseas can be a great experience. Unfortunately, moving the money back to Australia often isn't. Loaded exchange rates and fees can reduce the amount you receive into your bank account in Australia. With the right information at your fingertips and a professional currency conversion expert at your disposal, you can boost the potential benefits and minimise your risks. With the right foreign exchange specialist like TorFX, it is possible to achieve a spread of 1% - and even lower, reduce or remove fees, create a strategy for purchasing currency and access hedging tools.
Related Link: Click here to go to TorFX site
Repatriating funds from overseas after the passing from overseas can be a stressful process. In this situation, consider using OFX. They have a large global network of banking relationships. They also have a dedicated customer service team that have experience dealing with these type of transfers.
These days, it's easy to sell to international customers using an online store. Unfortunately, when many Australian businesses convert their currency, hidden fees are taken out. OFX have a great solution for online sellers. Click here for more details.
Related: Learn more about Selling Online to International Customers
If you have overseas customers that are paying you in foreign currency, the exchange rate you receive could be eating away at your profit margins. Using OFX is a great alternative receiving money into your Australian dollar bank account. Their exchange rates and $0 fee structure will allow you to maximise your overseas receipts.
Choosing a safe and secure way to transfer your money is critical. Before you send your money overseas, make sure your bank or money transfer service has the following:
All the companies mentioned above except Western Union meet all three criteria.
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International Money Transfers can take anywhere between a few hours and a week. So why is there such a big gap between the quickest and slowest ways to send money overseas? Most if it comes down to 2 things:
The exchange rates quoted are indicative and were taken from publicly available websites. See Free resources to help you learn more about sending money overseas for all the links
The exchange rates and fees for Transferwise and CurrencyFair are not included. This is because the exchange rate depends on if they can find a match for your transaction.
Outside of the exchange rate and fees, each method has it's own pros and cons. Make sure you find out more before deciding if it is right for you
TorFX, OFX and World First have minimum transaction requirements which is why they do not appear on the first table
Exchange rate margins and fees are different for other currencies and are subject to change.
We have compared the most common methods of payment however we have not compared absolutely every method, company and bank in Australia. The list is too long.
The Currency Shop has commercial partnerships with some, but not all of the banks and companies listed on the table. For more information, see our list of partners here
Credit card charges do vary. We used the typical charges and exchange rates from a Comm bank Mastercard
Western Union fees and exchange rates vary. They change depending on if it is a bank transfer or pick-up, whether you pay via bank transfer or using a credit card, and finally whether you transact online or in-person. In this example, we used the rates and fees for a cash pick-up, paying by card.
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This article explores the cheapest ways to transfer money back to Australia based on the amount you want to send.