Every year, over $800 billion is sent across borders by individuals and businesses. And a huge chunk of that money is lost to fees, poor exchange rates, and opaque charges that most senders never fully understand.
Here's how to send money internationally without handing over more than you need to.
Why International Money Transfers Are So Expensive
Before we look at how to save, it helps to understand where the money goes.
When you send an international transfer through a traditional bank, you typically pay:
- Transfer fee — a flat charge, often £15–£35 per transaction
- FX markup — your bank adds 2–4% on top of the real exchange rate
- Correspondent bank fees — hidden charges deducted along the SWIFT payment route
- Receiving bank fees — charged to the recipient's account on arrival
By the time the money arrives, the recipient can receive 5–8% less than you sent. On a £10,000 transfer, that's up to £800 gone.
The Real Exchange Rate vs. What Banks Offer
The "real" exchange rate is called the mid-market rate — the midpoint between the buy and sell prices of any currency pair. It's what you see on Google or XE.com.
Banks and traditional services rarely give you this rate. They add a margin — sometimes called a "spread" — which is their profit on the conversion. This markup is often invisible and rarely disclosed clearly.
The rule: always compare the rate you're offered against the mid-market rate before sending.
Best Ways to Send Money Internationally in 2025
1. Specialist Transfer Services
Services like Wise (formerly TransferWise), Revolut, and Payxara use the mid-market rate and charge transparent, low fees. They've built their own payment infrastructure to bypass the most expensive parts of the SWIFT network.
Best for: Regular transfers, business payments, large amounts
Typical cost: 0.3–1.5% of the transfer amount, with the real exchange rate
2. Bank International Transfers (SWIFT)
Sending through your bank is familiar but expensive. Banks typically apply a 2.5–4% FX markup plus fixed fees.
Best for: Transfers where you need the reliability of your existing bank relationship, or when the recipient's country has limited alternatives
Typical cost: 3–7% total, including FX markup
3. Cash Transfer Services
Western Union, MoneyGram, and similar services are widely available globally and allow cash pickup. Convenient but costly.
Best for: Sending to recipients in countries with limited banking infrastructure
Typical cost: 3–8%, sometimes higher for exotic corridors
4. Cryptocurrency Transfers
Sending via stablecoin (USDC, USDT) or bitcoin can be fast and cheap for tech-savvy senders. Volatility and complexity are the main risks.
Best for: Tech-forward senders transferring to recipients who can receive and convert crypto
Typical cost: Very low transfer fees, but conversion costs apply at both ends
How to Get the Best Exchange Rate
- Always check the mid-market rate first — Google the currency pair before you transfer
- Compare at least three providers — rates vary significantly by provider and by the time of day
- Avoid weekend transfers where possible — some providers widen their spreads on weekends
- Use a rate alert — services like Wise and Revolut let you set rate alerts and transfer when you hit your target rate
- Consider forward contracts for large, regular business payments — you can lock in today's rate for a future transfer
Business International Payments
For businesses sending regular international payments — paying suppliers, settling invoices, distributing payroll — the costs add up extremely fast.
A company sending £500,000 per month internationally at a 3% blended cost is losing £15,000 every month. Over a year, that's £180,000.
Business-focused payment platforms offer:
- Bulk transfer tools — pay multiple recipients in one click
- Multi-currency accounts — hold balances in foreign currencies and convert when rates are favourable
- Transparent FX pricing — see the markup clearly before confirming
- API integration — automate payment runs directly from your ERP or accounting software
Things to Watch Out For
Hidden fees in the fine print — some services advertise "no transfer fee" but make it back in the exchange rate. Always calculate the total cost end-to-end.
Delays on first transfers — new recipients often require verification, which can add 1–2 business days. Set up new payees before your deadline.
Compliance holds — large or unusual transfers may be held for compliance checks. Providing documentation upfront can speed this up.
Destination country restrictions — some countries have capital controls that limit inbound transfers. Check before you send.
Voice Search FAQ
What is the cheapest way to send money internationally? Specialist transfer services like Wise, Revolut, or Payxara typically offer the lowest total cost — using the mid-market exchange rate with transparent fees of 0.3–1.5%.
How long does an international bank transfer take? SWIFT transfers typically take 1–5 business days. Specialist fintech services often deliver same-day or next-day, depending on the corridor.
Is it safe to use online money transfer services? Yes, if they are regulated. In the UK, all payment service providers must be authorised by the FCA. Always verify authorisation before using any transfer service.
Can I send money internationally from my phone? Yes. Most specialist transfer services have mobile apps that allow you to send internationally in minutes.
The gap between what traditional banks charge and what modern fintech platforms offer has never been wider. With the right tools, sending money internationally should cost a fraction of what it once did — and arrive in hours, not days.