As a customer, generally you don't care whether the cost is more fee, more markup etc.. You just care about how much in total gets siphoned off in the process.
Of course, the reason we want a cheap transfer is clear.
The transfer amount will be set in either the receive amount or the send amount.
If the 'receive' amount is defined (for example, you need 200,000 EUR to arrive in Portugal to pay for a property), then the big question is: what will this cost me in pounds?
On the flip side, if the 'send' amount is set (for example, you need to send £30,000 to Canada to cover student living expenses), you'll be keep to receive as much CAD as possible for your £20k.
The mid-market rate (MMR) is the ratio of one currency to another.
For example, the GBP/USD mid-market rate is a number that tells you how many dollars you can buy with one pound. In August 2024, for example, it's been averaging about 0.77. That means £1 buys you $0.77.
The mid-market rate is not controlled by anyone - it's defined by something called market forces. Sounds mysterious, but it's not really!
Changes in the mid-market rate can definitely make your transfer cheaper or more expensive. But the difference will be mirrored across all money transfer companies. Changes in the mid-market rate impact across time, rather than across providers.
Some companies give you direct access to the mid-market rate, and others give you a slightly worse rate than that. Banks typically give you a rate that's around 3% worse.
Learn more about the mid-market rate and how it affects your international payments →
Who is the cheapest? Frustratingly, the answer is 'it depends'
Every transfer is different. The key variables are:
Payment method - how you fund the transfer (bank transfer, debit card, credit card)
Countries - sending money from the UK to Spain is quite different from sending from Argentina to Cuba
Currencies - likewise, common currencies like GBP, EUR and USD tend to be cheaper to exchange than more exotic ones
Speed - you might pay more for a faster transfer service
Intermediary banks - depending on the provider you use, your transfer could incur extra costs from intermediary banks as your funds make their way to their destination
That's why it's so important to compare the market before sending. It's also why we can't give you one definitive recommendation for who is the cheapest.
If you really want a quick answer, then we can look at typical fee structures for the most common transfers, which would give us two recommendations: Wise and TorFX.
List of the cheapest money transfer company fees & rates
Company | Type | Typical fee | Typical markup |
|---|---|---|---|
Wise | Money transfer service | From 0.35% | None - offers the mid-market rate |
TorFX | Money transfer broker | None | 0.3% to 1.3% |
Zing | Money transfer service | From 0% for smaller transfers | None - offers the mid-market rate |
Currencies Direct | Money transfer service | None | 0.3% to 1.3% |
Regency FX | Money transfer broker | None | 0.3% to 1.3% |
Halifax | High-street bank | £0 to £20 | 3.55% ❌ |
Lloyds Bank | High-street bank | £0 to £20 | 2.1% to 3.56% ❌ |
Co-operative Bank | High-street bank | £0 to £20 | 4% ❌ |
Tips for lowering the cost
Always compare before you send
We may be a bit biased, given that SendAbroad is a comparison site. However, it's pretty difficult to argue the point. With such a range of companies on the market, the only way to get the lowest cost is to compare.
Things change rapidly in this business - just because a certain company was cheapest last week, it doesn't mean they still are.
That's why I recommend always making a final check before proceeding with your transfer.
Sacrifice speed for cost
Some providers will give you multiple send options with different costs and speeds. To make every penny count, consider choosing the cheapest, will will likely be slower.
It helps, then, to be organised - we normally end up paying a penalty for leaving things to the last minute one way or another.
Time the market
This is easier said than done, but of course, a big factor in the cost of your transfer is the mid-market rate. Forward contracts can be used to lock-in rates if you'll be making a future payment.
If you happen to see rates turn in your favour, you might want to seize the moment and transfer sooner. No guarantees here, it would be wrong not to mention it!
Send fewer, larger payments
Exchange rates sometimes become more favourable for large transfers. Plus any transaction fees will only be charged once.
So if you're able to, consider bundling payments together into a single, larger transfer.
Fund using a bank transfer
To send money with a money transfer company, you first need to send them your funds. They'll then pass it on to the recipient.
The cheapest way to do this tends to be bank transfer. Your enemy in this area is credit cards - not only will the transfer company charge you more, but you could end up with bills from your credit provider too for a cash advance.
Send to a bank account
The cheapest way to receive funds on the other end is directly into a bank account. Options like mobile money or cash pickup may have their benefits, but that usually comes at a cost.
So if the recipient is able to take funds into a bank account, I suggest you choose that option when setting up the transfer.
Ask for a better deal
With currency brokers in particular, don't be shy - see if they can improve your rate. It can't hurt to ask, and brokers generally do have some flex in the exchange rates they are able to give you.
For many, cost is king, and we can understand why.
However, it's usually when something doesn't go to plan that you may regret prioritising cheapness over everything else.
The overall transfer experience should not be forgotten about. From web and app experience, to standards of customer support and transfer speeds - cost isn't everything.
For a more well-rounded view of what makes an international transfer great, see which companies I'd suggest for international transfers.
