Sending money abroad should be simple, yet two transfers of the same amount can end up costing very different sums. The reason is rarely the visible fee. It is usually the exchange rate, a margin that providers add on top of the real market rate, plus extra charges that appear along the way.
This guide shows you how to calculate the true cost of an international transfer, compares the main ways to send money abroad, and explains how to choose the cheapest option for your situation. If you are on the other side of the equation, and your main concern is receiving payments from international clients, start there and come back when you need to move the money onward.
Disclosure: some links on this site may be affiliate links. They never change our rankings. Fees and rates change often and differ by country and route, so always check each provider’s current quote. Pricing information in this article was last reviewed on October 4, 2026.
The real cost of an international transfer
Every international transfer has up to three layers of cost:
- The transfer fee: a flat or percentage fee charged by the provider. It is the easiest cost to see.
- The exchange rate margin: the difference between the real market rate and the rate you are offered. It is often the biggest cost and the least visible.
- Third-party fees: charges from intermediary or receiving banks, mainly on bank transfers.
What is the mid-market rate?
The mid-market rate, also called the interbank rate, is the rate big banks use to trade currencies with each other. Most providers give customers a rate that is the mid-market rate plus a markup, which is how they make a profit. Most providers apply an exchange rate markup to the midmarket rate, so the customer gets a worse rate than the one banks use among themselves.
This is why “zero fee” or “no commission” offers can be misleading. The cost has not disappeared. It has moved into the exchange rate.
A worked example (illustration only)
Imagine you want to send 1,000 USD to a recipient who will receive euros, and the mid-market rate is 1 USD = 0.90 EUR. At the perfect rate, your recipient would get 900 EUR. The numbers below are made up to show how the costs add up, not real quotes.
| Provider A (bank-style) | Provider B (transparent fee) | |
|---|---|---|
| Visible fee | 30 USD | 6 USD |
| Exchange rate margin | 3% | 0% |
| Amount converted | 970 USD | 994 USD |
| Rate applied | 0.873 | 0.90 |
| Recipient gets | about 847 EUR | about 895 EUR |
| Total cost vs. perfect 900 EUR | about 53 EUR (5.9%) | about 5 EUR (0.6%) |
Provider A looks like it charges a “small” 30 USD fee, but the margin is what makes it expensive. The lesson: always compare how much the recipient receives, not just the fee.
Ways to send money abroad, compared
1. Specialist transfer providers and multi-currency accounts
These providers were built for international transfers. Wise is the best-known example. It states that it gives the mid-market rate and charges a separate, visible fee. The Wise fee is a percentage of the amount you send, and that percentage varies by currency, with a low minimum fee for small amounts. The pages we checked show starting fees from roughly 0.3% to 0.6% depending on currency and country, and for some currencies you can lock in a rate for a period of time. Transfers in the same currency between Wise accounts are free. Keep in mind that Wise does not support cash pick-up, so the money goes to a bank account or a Wise account.
Strengths: transparent pricing, no exchange rate markup, usually the lowest total cost for bank-to-bank transfers.
Limits: no cash pick-up; coverage and fees depend on the route; verification is required.
2. Neobanks
App-based banks like Revolut offer currency exchange and international transfers inside the app. Their pricing depends on the plan and country. As a general pattern, conversions at the mid-market rate on weekdays are limited by a monthly allowance on lower plans, and a weekend markup can apply on those plans. Transfers to other users of the same app are normally free. Check the fee page for your country and plan before you rely on the “free” label.
Strengths: convenient if you already use the app, good for small, regular transfers.
Limits: allowance limits, weekend markups, extra fees for some routes and SWIFT transfers.
3. Traditional bank transfers (SWIFT)
Banks send international transfers through the SWIFT network, often via one or more intermediary banks. Costs can include:
- The sending bank’s fee, typically a flat charge. Reports put outgoing transfer fees anywhere from about 10 to 50 USD depending on the bank and country.
- Intermediary bank fees. When a payment passes through intermediary banks, each one may take a fee of roughly 15 to 50 USD, so more hops mean a smaller amount arrives.
- The receiving bank’s fee for crediting the money.
- An exchange rate margin if currency conversion is needed.
You can usually choose who pays the fees using one of three codes:
- OUR: the sender pays all fees, so the recipient gets the full amount. This is the only option that guarantees the recipient pays no fees.
- SHA (shared): the sender pays the sending bank’s fee and the recipient covers the rest, including intermediary charges. It is the most common default, which is why the amount received is often lower than the invoice.
- BEN: the recipient pays all fees.
If you ask a client to pay you by bank transfer, ask for OUR, or add a small buffer to your price. If you are the sender, choosing OUR makes the final amount predictable, although your bank will charge more up front.
Strengths: works almost everywhere, familiar, good for large amounts when the bank gives a fair rate.
Limits: often the most expensive and least transparent option; can be slow; intermediary fees are hard to predict.
4. Money transfer operators (cash and agent networks)
Companies like Western Union have large agent networks and allow cash pick-up, which is essential in places where recipients may not have a bank account. The trade-off is cost. Western Union states that it also makes money from currency exchange, which means its rate sits above the mid-market rate. In practice you pay a transfer fee and a markup, and the combination changes with how you pay and how the recipient collects. In one comparison for transfers to India, cash pick-up used a weaker rate than bank deposit, with a markup about two and a half times higher. Paying by bank card and collecting cash can mean a higher fee and a bigger markup than other combinations.
Strengths: huge network, cash pick-up, useful where banking is limited.
Limits: usually higher total cost; costs vary a lot by payment and pick-up method.
5. Payment wallets
Wallets like PayPal are convenient, especially for paying online or sending to people who already use them. But currency conversion is expensive. Their fee pages show the conversion fee is added on top of the base exchange rate, and the percentage varies by country and type of conversion, from about 2.5% to 4.5% on the pages we checked. If you can, avoid converting inside a wallet and use it only when the recipient needs it.
Strengths: convenient, widely accepted, fast for small payments.
Limits: highest conversion cost of the options here.
Quick comparison
| Method | Cost structure | Speed (typical) | Best for | Watch out for |
|---|---|---|---|---|
| Specialist transfer provider | Mid-market rate plus a visible percentage fee | Minutes to a couple of days | Bank-to-bank transfers, regular senders | No cash pick-up; verification |
| Neobank | Depends on plan; allowance, weekend markup | Minutes to a few days | Small, regular transfers inside the app | Plan limits and extra fees |
| Bank (SWIFT) | Sender fee + intermediary + receiving + FX margin | 1–5 business days | Large amounts at a fair rate; recipients without other options | Hidden fees, delays |
| Money transfer operator | Fee + exchange rate markup | Minutes (cash) to days | Cash pick-up, unbanked recipients | Higher total cost; varies by payment method |
| Payment wallet | Conversion fee above base rate (about 2.5%–4.5%) | Minutes to days | Recipients who require it | Expensive conversion |
Before you pick one, run your own numbers: see the hidden fee with our calculator for your amount and currency pair.
Alternatives to bank transfers
If you move money across borders regularly, a one-off transfer is not always the best tool. A multi-currency account lets you receive money in the currency you are paid in, hold it as it is, and convert only when the rate suits you. That alone can save money, because you avoid a forced conversion on the day a payment arrives. It also makes it easier to pay suppliers or send money to family without going through a bank each time.
Other alternatives worth considering:
- Same-currency transfers between users of the same provider, which are often free.
- Local payment methods, where available, which can be cheaper than international wires.
- Cash pick-up services, only when the recipient needs cash.
How to choose the cheapest option for your situation
Small amounts, bank to bank. A specialist transfer provider or a neobank is usually the cheapest. Compare the “recipient gets” amount for each.
Large amounts. The exchange rate matters as much as any fee, so compare the rate with the mid-market rate. Some providers let you set rate alerts or lock a rate for a period of time. Check the limits and the verification you will need.
Regular transfers. Open a multi-currency account and convert in batches when the rate is good.
Recipient needs cash. Use a money transfer operator, compare the cash pick-up rate with the bank deposit rate, and avoid paying by card if a bank transfer is possible.
Sending to a country with limited provider coverage. Compare several providers and check whether the route is supported, then consider a bank transfer with the OUR option.
Step by step: how to send money abroad at the lowest cost
- Find the mid-market rate using a currency converter or a financial site, as your reference.
- Get quotes from two or three providers for the same amount and currency, and compare how much the recipient gets.
- Check the payment method. Paying by bank transfer is often cheaper than paying by card.
- Choose who pays the fees if you use a bank transfer (OUR, SHA or BEN).
- Check the details twice: name, account number or IBAN, SWIFT/BIC. A mistake can delay the payment or cost extra to fix.
- Save the receipt and reference number, so you can trace the transfer if needed.
- For large amounts, consider rate alerts, and avoid converting on weekends if your provider adds a weekend markup.
Common mistakes to avoid
- Comparing only the fee. The exchange rate margin is often the larger cost.
- Believing “zero fee” claims. The cost may be hidden in the rate.
- Paying by card for a transfer that could be a bank transfer. Card payments often carry higher fees.
- Letting your bank convert automatically at a poor rate.
- Using the default SHA option when you need the recipient to receive an exact amount.
- Using unregulated services, which put your money at risk.
Is it safe?
Use providers that are regulated in your country, check which regulator oversees them, and read how they protect customer money. Remember that non-bank providers usually protect funds through safeguarding rather than a bank deposit guarantee. Be careful with requests to send money urgently to people you do not know, since transfers are often hard to reverse, and always verify the recipient’s details before you confirm.
Where to compare prices for sending money
For remittances to family, the World Bank runs a public database called Remittance Prices Worldwide that tracks the average total cost, as a percentage, of sending 200 USD with each provider. It is a useful way to see how much different services charge on a route. International goals such as the G20’s aim to bring the global average cost down to 3 percent show how much room there is to improve. You can also compare live quotes on providers’ own calculators and on independent comparison sites. Always check the “recipient gets” amount.
Frequently asked questions
What is the cheapest way to send money abroad?
There is no single answer, because it depends on the amount, currency pair, payment method and how the recipient gets the money. For bank-to-bank transfers, specialist providers that use the mid-market rate with a visible fee are often the cheapest. Compare the amount the recipient receives.
Why do banks charge so much for international transfers?
Banks may charge a fee for sending, add intermediary and receiving fees, and apply an exchange rate margin. Together these can be much more than the headline fee.
What is the difference between OUR, SHA and BEN?
They are SWIFT instructions for who pays the fees. OUR means the sender pays everything. SHA means the fees are shared. BEN means the recipient pays all fees.
How long does an international transfer take?
From a few minutes to several business days, depending on the provider, the countries involved and whether the transfer needs extra checks.
Is it cheaper to send money by bank transfer or card?
In many cases a bank transfer is cheaper. Card payments often have higher fees. Check the cost of each payment method before you confirm.
Can I get my money back if I send it to the wrong account?
Sometimes, but not always, and it can take time and cost fees. That is why verifying the recipient’s details before you send is essential.
Final thoughts
The cheapest way to send money abroad is the one that leaves the most money in your recipient’s account. Look beyond the headline fee, compare the exchange rate with the mid-market rate, and check who pays the intermediary charges. For regular needs, open an account that lets you hold and convert currencies instead of paying for every transfer separately.
This article is general information, not financial, tax or legal advice. Fees, rates and rules change and vary by country. Pricing information reviewed October 4, 2026.