Best Way To Carry Money Overseas

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While banks do offer secure wire transfers around the world, they also tend to have weaker exchange rates, higher fees and fewer options to send and receive cash when compared with a money transfer service. Unlike banks, they specialise in one thing: transferring money to countries worldwide.

Looking for a cheap way to send money overseas?

There are lots of factors to consider when sending an international money transfer in addition to the fees, including the exchange rate, the payment method, the speed of delivery and the level of customer service. Keep in mind that we don't compare every product in the market, but we hope that our tools and information will allow you to compare your options and find the best service for your needs.

Compare money transfer services to help you send money overseas

Disclaimer: Exchange rates change often. Confirm the total cost with the provider before transferring money.

Although the process differs by company, to send money overseas you'll generally need to do the following:

Register for a free account. You'll provide your full name, contact info and date of birth. Most providers also require ID and proof of address.
Provide your recipient's information. Specify who's receiving the funds by providing their name and contact information. If you're sending money to a bank account, you'll need to include the bank name, SWIFT code and your recipient's account number.
Add the details of your transaction. Enter how much money you're sending and in which currency it'll be received.
Review and confirm. For most providers, you'll see a summary of your transfer showing the amount you're sending, the exchange rate, any fee you'll pay and the total your beneficiary will receive.
Pay for your transfer. Payment methods vary by company but could include credit or debit card, bank account, cash or mobile wallet.
Track your transaction. You should receive confirmation that includes a tracking number or receipt for monitoring the progress of your transfer online or with a company branch.

You may also receive an email or text when your recipient has received your funds and the transaction is completed.

Send money overseas with TorFX

TorFX guarantees to match any competitor's exchange rate. Conditions apply.

TorFX sends money overseas in 30+ currencies, with competitive rates for transfer amounts over $2,000.

With so many specialised money transfer companies to choose from, it's no surprise that you have options when it comes to how your recipient receives your funds.

How you send your money and how it's received will ultimately affect delivery speed and how much you're paying in fees. In general, your options include the following:

Bank transfers. Many major Australia banks can safely transfer your funds to countries around the world. Banks rely on existing links between banks and banking systems worldwide and it'll often be called a telegraphic transfer. However, two downsides are the high fees and the weaker exchange rates you'll often receive in comparison to other options.
Online money transfer services. These specialists offer more affordable transfers than banks do, allowing you to quickly and easily manage your transactions from home. With competitive exchange rates and lower fees, you can send funds from your bank account. Many also allow you to pay with a credit or debit card.
Services with cash pick-up. Services like Western Union and MoneyGram offer the key advantage of giving your recipient fast access to the cash you send – sometimes within minutes. You can pay online or at one of the thousands of agent locations worldwide. However, services typically cost more than an online transfer specialist and vary by where you're transferring your money and how you're paying for it.
PayPal transfers. Not just for online purchases, PayPal offers transfers to more than 100 countries and supports multiple currencies. Its exchange rates are often better than those you'll get from a bank but not quite as strong as rates from money transfer companies. PayPal calculates its transfer fee as a percentage of the amount you're sending – meaning it's often better for sending smaller amounts of money.
Cheques and money orders. Although not a quick option, you could send an international cheque overseas, obtained from your bank. It costs a little more – you'll have to purchase the cheque and your recipient may be charged a fee by their own bank when cashed.

Let's crunch the numbers: Banks vs money transfer services

To put this into perspective, let's see what a $1,000 transfer to India looks like with a bank compared to a money transfer service.

	Major Australian bank	Money transfer specialist
Transfer fee	$24	$3.99
Exchange rate	1 AUD = 47.193 INR	1 AUD = 48.661 INR
Transfer speed	2-4 days	Same day
Receiving options	Bank account	Bank account, mobile credit recharge
Total rupee received	INR46,060.37	INR48,466.84
Receiver gets	INR2,407 less	INR2,407 more

The transfer through the bank ends up giving your receiver roughly $50 less than the money transfer service. Not only is the exchange rate worse, but the fees are a lot higher. It'll also take a few days longer, so it pays to see what your other options can be.

Compare exchange rates. Use your currency's mid-market rate as a baseline to compare against the rates you're offered. You want a provider whose rate is closest to the mid-market rate.
Send more money per transfer. Many providers discount transfer fees or waive them altogether when you send larger amounts.
Look for hidden fees. Avoid surprises by reading the fine print for fees that could apply to your transfer, including charges your recipient will need to pay.
Sniff out special offers. Keep an eye on promotions that offer, for example, no fees on your first transfer. While ideal for limited transfer needs, you could also end up with a new preferred service.
Shop around. The best way to save is by comparing rates, fees and transfer speeds of each provider, closely looking at their benefits and drawbacks.

There's a lot riding on a competitive exchange rate and low fee. But depending on how much you're sending, how soon your recipient needs it and rates at the time of transfer, you could save even more with the following tools.

Forward contracts. With this tool, you lock in a favourable exchange rate for a future transfer, avoiding unpredictable movements in the rate.
Limit orders. A limit order allows you to request a transfer that's executed only when a specific rate is reached, at which point your provider locks it in.
Regular, automated transfers. You may be able to shave a few pennies off an exchange rate or pay lower transfer fees by setting up a plan to automate more regular payments overseas.

Exchange rates

You've probably noticed that the exchange rate you see online or reported in the media (known as the wholesale or mid-market rate) isn't the same rate you get when you make a transaction. Banks and most money transfer services make their profit on the margin added to this wholesale exchange rate, but it can vary from 0.1% to 10%.

With this in mind, it pays to compare the products available to make sure you find the best overseas money transfer solution for you.

Fee-free transfers

Unfortunately, fee-free transfers are never really free. Even though international money transfer companies are cheaper than the banks, they still have margins and fees. While there might not be a fee included, the company is still making money by adding a margin to the mid-market rate.

How to get the best exchange rate

Please note that the process is different for every provider. The example below shows just one of the ways you can initiate a transfer.

Send money overseas with TorFX

TorFX guarantees to match any competitor's exchange rate. Conditions apply.

TorFX sends money overseas in 30+ currencies, with competitive rates for transfer amounts over $2,000.

Adrienne Fuller is the head of publishing at Finder US. With a decade of experience creating guides in finance and education, she aims to deliver the accurate and transparent information she wishes she had when she made some of life's important financial decisions. For the past 3 years she has been the publisher of money transfers, helping readers save when they send money all over the globe. She has a BA from Colorado College and loves to hike with her two Catahoula dogs around her home in San Diego.

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Important Information*

TorFX International Money Transfers

TorFX guarantees to match any competitor's exchange rate. Conditions apply.
TorFX sends money overseas in 30+ currencies, with competitive rates for transfer amounts over $2,000.

MasterRemit International Money Transfers

New customers get their first transaction for free with code FIRSTFREE. T&Cs apply.
Send money in minutes at competitive exchange rates with this Australian money transfer service.