10 Ways to Save Money on Your Currency Transfer Abroad

Sending money abroad has never been easier, but it is not always cheap. Hidden fees, poor exchange rates, and the wrong choice of provider can turn a $1,000 transfer into $950 on the other side. 

Banks in the US often charge high fees, while money transfer apps and brokers vary widely in cost depending on how you pay and where you send. 

The good news is that with a little planning, you can cut those costs and keep more of your money in your recipient’s pocket.

Here are 10 practical ways to save on international transfers.

1. Compare Providers Before Sending

Never assume your bank offers the best deal. 

US banks often add a 3-6% markup on exchange rates and charge flat fees of $30-$50, and that’s not including the receiving fees. Money transfer companies like Wise or Instarem often charge less than 1%.

For example, sending $1,000 to Europe via Xoom costs about $50, while Wise charges closer to $6.

Always run your transfer through MoneyTransfers.com comparison tool to spot savings in real time.

2. Pay Attention to Exchange Rate Markups

Transfer companies that advertise “no fees” usually earn money by adding a hidden margin to the exchange rate. 

MoneyGram, for example, adds an average 1.33% markup. That sounds small but on $10,000 it’s $133 lost. 

Always compare the offered rate against the mid-market rate you see on Google or XE. Again, comparison tools like MoneyTransfers.com will often show you how much you will get across all companies.

3. Avoid Using Credit Cards for Transfers

Credit cards may be convenient, but they’re the most expensive way to fund a transfer. 

Xoom charges around $10 in card fees on top of its markup. Your card issuer may also classify the payment as a cash advance, adding more fees and interest.

For maximum benefit, it’s much cheaper to use a bank transfer or ACH to deposit funds into your money transfer account and transfer from there.

4. Take Advantage of First-Transfer Discounts

Many providers offer promotional rates or fee-free first transfers. 

MoneyGram waives fees on transfers under $5,000 for first-time users, while Ria and Instarem provide better rates on your first transaction. 

If you send money occasionally, switching providers to use these offers can save you real money. However, do compare your options and deals because most of the time you will save more on premium rate vs lower fee offers.

5. Choose the Right Payment and Delivery Methods

How you fund and how your recipient collects money can change the cost. 

Ria, for example, charges as little as $0.99 if you pay via bank and send to a bank account, but closer to $9 if you use cash pickup. Same goes for Wise, depending on the transfer route, using your Wise balance is almost always cheaper than depositing via debit/credit cards.

If you don’t need instant cash pickup, choose bank transfers to save.

6. Send Larger Transfers Less Often

Many providers apply flat fees. That means sending $1,000 every week could cost four times more than sending $4,000 once a month. 

Even with percentage-based fees, some companies give better exchange rates on larger amounts, especially on very large transfers ($10,000+).

There are a few ways to save on this: 

1. Consolidating transfers into one larger transfer, this will save you the most. 
2. Look for transfer companies that specialize in recurring payments, these will often have better deals on multiple transfers.

Either option works, but will depend on your needs.

7. Avoid Double Conversions

If you send USD to a country where the local provider first converts to EUR and then to GBP, you pay two markups. 

Always try to send directly in the recipient’s local currency, be it their local bank account or a multi-currency wallet.

For example, sending USD straight to pesos in Mexico through Wise avoids the double hit that happens if you send it to the EUR wallet/account first, creating a USD-EUR-MXN chain.

This is very common when traveling abroad and you need someone to send you money. Usually, you would send money to their home account which is a bad practice as they would need to convert it to the currency they need, creating double conversion.

8. Watch Out for Limits on Cheap Transfers

Many companies like MoneyGram or Ria Money will only offer lower rates or discounted fees under certain conditions, usually minimum and maximum transfer amounts.

If you fall within the transfer amount bracket, great! But if not, you have a few options:

• Use multiple companies giving the discounts to make use of all the offers
• Use a transfer company that offers the mid-market rate on the remainder of your transfer
• Use a currency broker like Regency FX or TorFX if you need to make a large transfer (more below)

9. Use Specialist Providers for Regular or Large Transfers

If you need to send a large transfer (above the discounted amount), it’s better to use a currency broker such as TorFX or Currencies Direct.

Currency brokers specialize in making large transfers by negotiating the rates with you and matching the market. Usually, there are no fees involved but the rate will be slightly worse than others (for them to make the profit).

The companies also have dedicated account managers that will handle your transfer, giving you extra support and security, which beats other benefits when it comes to large transfers. 

It might not sound like a good deal, but once you start adding up smaller payments and fees involved, you will likely pay even more than with a broker.

They also allow you to lock in rates or schedule recurring payments. This can protect you from sudden shifts in the dollar’s value, which is useful if you’re paying tuition or buying property abroad.

10. Don’t Overpay for Speed

Speed is important, but it comes at a price. 

Cash pickup in minutes often costs more than next-day bank delivery.  For instance, Ria, MoneyGram and Remitly charge more for cash transfer than for bank deposits.

If your transfer is not urgent, it’s almost always better to pick a slower option (which usually will still arrive within a day) and will save you $10-$30 per transfer.

The cost of the transfer will depend on your exact needs. We recommend using MoneyTransfers.com live comparison tool to find the cheapest provider and see exactly how much your recipient will get.

By comparing providers, avoiding costly payment methods, and planning your transfers, you can save a meaningful amount. 

On a $1,000 payment, the gap between the cheapest and most expensive service can be $40+. Over time, these savings add up.