Best Way to Transfer Money Abroad in 2025

Whether you’re supporting family overseas, paying for services, or managing a foreign property, transferring money internationally can be difficult. This process often presents challenges. Banks often charge high fees and mark up exchange rates, making these transactions costly. Thankfully, online money transfer providers have risen. Fintech innovations have made sending money abroad more affordable. They have also made it more transparent and faster than ever before.

This guide will walk you through everything you need to know about transferring money internationally. It highlights the best providers. You’ll find cost-saving tips and key factors to consider.

1. How Do International Money Transfers Work?

An international money transfer moves money from one country to another, often involving different currencies. Unlike domestic bank transfers, international transfers come with added complexities like exchange rate fluctuations and fees.

Costs to Consider:

1. Transfer Fees:
   • Some providers charge flat fees per transaction, while others apply a percentage of the transfer amount.
   • “Fee-free” services often make up the cost through less favorable exchange rates.
2. Exchange Rates:
   • The exchange rate determines how much foreign currency the recipient will receive.
   • Providers often add a markup to the mid-market exchange rate (the rate banks use when trading with each other).

Key Question to Ask:

Always ask your provider: “After all fees, how much will the recipient receive in their currency?” This simple question ensures you understand the total cost and avoid hidden charges.

2. Best Ways to Transfer Money Abroad

a) Online Money Transfer Providers

Specialist money transfer services are typically the most affordable option. These companies focus on international transfers, offering competitive exchange rates and low fees.

Top Providers:

• Cambridge Currencies:
  • No fees for transfers over £5,000.
  • Excellent for large transfers, such as property purchases.
• Wise (formerly TransferWise):
  • Uses the mid-market exchange rate with transparent fees.
  • Ideal for small and medium-sized transfers.
• Revolut:
  • Offers fee-free transfers between Revolut accounts and competitive rates for bank transfers.
  • Great for frequent, smaller transfers.
• CurrencyFair:
  • Peer-to-peer exchange platform with low fees.
  • Ideal for users who want more control over the exchange rate.
• PayPal:
  • Convenient but often more expensive due to high fees and marked-up exchange rates.

b) Bank Transfers

Banks remain a reliable option, especially for large, regular transfers. However, their exchange rates are often less competitive, and fees can add up.

Notable Bank Services:

• HSBC Global View:
  • Fee-free transfers between linked HSBC accounts worldwide.
  • Available for over 40 currencies in 200+ countries.
• Nationwide:
  • Free euro transfers to SEPA countries for FlexAccount holders.

c) Cash Pick-Up Services

For urgent transfers, use services like Western Union and MoneyGram. Recipients can pick up cash at local agents. These services are fast but come with higher fees and exchange rate markups.

d) Cryptocurrencies

Cryptocurrencies like Bitcoin and stablecoins (e.g., USDC) are emerging as alternatives for international transfers. However, they require technical knowledge and come with volatility risks.

3. Cheapest Ways to Send Money Abroad

Small Transfers (< £5,000)

• Wise: Consistently offers some of the best rates for smaller transfers.
• Revolut: Fee-free transfers between Revolut accounts; competitive for bank transfers.

Large Transfers (> £5,000)

• Cambridge Currencies: No fees, competitive rates, and perks for first-time users.
• Moneycorp: Fee-free transfers over £5,000.
• OFX: Offers good rates for high-value transfers.

Tip: Even small differences in exchange rates can significantly impact large transfers. For example, a 1% difference on £100,000 is £1,000.

4. Factors to Consider When Choosing a Money Transfer Provider

a) Security

• Ensure the provider is regulated by a financial authority (e.g., FCA in the UK).
• Look for services that safeguard funds in separate accounts to protect your money if the provider faces financial issues.

b) Speed

• Some services, like Wise and Revolut, offer same-day or instant transfers for select routes.
• Bank transfers may take 2-5 business days, depending on the destination.

c) Transparency

• Choose providers that disclose all fees and exchange rates upfront.

d) Accessibility

• Consider whether the recipient needs a bank account or can collect cash.

e) Customer Support

• Look for providers with reliable customer service, especially for large or urgent transfers.

5. Tips to Save Money on International Transfers

1. Compare Providers: Use comparison tools like RemitFinder, a powerful comparison site.
2. Avoid Weekends: Exchange rates are less favorable when markets are closed.
3. Bundle Transfers: If you’re making regular payments, some providers offer discounts for recurring transfers.
4. Negotiate Rates: For large transfers, ask for a better rate from currency brokers.
5. Lock in Rates: Use forward contracts with brokers to secure today’s exchange rate for future transfers.

6. Safety and Scams

How to Stay Safe:

• Verify that the provider is FCA-regulated.
• Avoid services with unrealistically low fees or rates.
• Double-check recipient details to prevent errors.
• Watch out for phishing scams and unsolicited requests for transfers.

Red Flags:

• Providers asking for passwords or unusual payment methods.
• Rushed requests for urgent transfers.

7. Case Study: Comparing Transfer Costs

Scenario:

You’re sending £10,000 from the UK to a eurozone country. Here’s how much the recipient will get with different providers (after fees):

Provider	Exchange Rate	Fees	Recipient Gets
Cambridge Currencies	1.2035	£50	€12,035
HSBC	1.1800	£50	€11,800
PayPal	1.1700	£60	€11,640
Western Union	1.1650	£75	€11,575

Takeaway: Banks and traditional services might seem convenient. However, specialist providers like Cambridge Currencies can save you hundreds of euros per transfer.

8. Common Use Cases for International Money Transfers

a) Sending Money to Family Abroad

• Use Wise or Revolut for small, regular payments.
• Consider Western Union for cash pickups.

b) Paying for a Foreign Property

• Use Cambridge Currencies for large, one-off transfers.

c) Paying Overseas Tuition Fees

• Look for providers offering bulk discounts or fee waivers for educational payments.

d) Supporting Emergency Needs

• Opt for instant transfer services like Cambridge Currencies.

Conclusion: Choosing the Best Option for Your Needs

There’s no one-size-fits-all solution for transferring money abroad. The best method depends on factors like the amount, destination, urgency, and your budget. Here’s a quick summary:

• For Small Transfers: Wise, Revolut.
• For Large Transfers: Cambridge Currencies.
• For Cash Pickups: Western Union, MoneyGram.
• For Instant Transfers: Revolut, Wise (for select routes).

Take the time to compare providers. Understand the costs involved. By doing so, you can save money and ensure your funds arrive safely and quickly. Start comparing today to make your next international transfer stress-free and cost-effective!