Looking for the cheapest way to send money abroad from the UK? High-street UK banks often offer terrible deals, charging high money transfer fees and hidden markups on exchange rates.
Today’s consumers have a range of options open to them when they are looking to send money abroad. However, some services are slow and include hidden fees, so it is important to do your research to find the cheapest and most efficient one for you.
In the blog, learn how to find the best solutions for cheap money transfers when sending money abroad.
Here are the top things you need to know, including how to be sure your money is safe, how to spot hidden fees and markups, and help you find the cheapest way to transfer money internationally from UK.
Cheap Money Transfers from UK Overview
| 🌐 No. of providers reviewed | 20+ |
| 💸 Cheapest under $10,000 | Wise ❯ |
| 🏦 Cheapest over $10,000 | Atlantic Money |
| 🌎 Average cheapest to the Americas | Wise (formerly Transferwise) ❯ |
| 🌍 Average cheapest to Europe | Wise (formerly Transferwise) & Atlantic Money |
| 🌏 Average cheapest to Asia-Pacific | Wise (formerly Transferwise) ❯ |
| 🌍 Average cheapest to Africa | Remitly ❯ |
International Transfer Fees Explained
To find a cheap way to send money abroad from the UK, the first thing you need to check before sending money abroad is the overall transfer cost.
The upfront fee is often easy to spot, but there can be hidden fees elsewhere. This can catch you off guard if you don’t know where to look, especially if you chose traditional banks to send money abroad from the UK.
Sending Money Overseas will Generally Incur Two Costs:
The Upfront Fee: The Advertised Cost
The transfer fees may vary from provider to provider, but can often be portrayed as low-fee or even “free international transfers”. Most top UK banks have a “fixed fee” when sending money abroad, which is already quite high compared to specialist money transfer companies. But be aware that the upfront fee may not represent the total cost of the transfer.
Here is the comparison table of top UK banks compared to top money providers to send money abroad.
| UK Bank | International transfer cost |
|---|---|
| Barclays | 4% – 10% |
| HSBC | 2% – 8% |
| Lloyds | 3.5% – 8% |
| Online money providers | International transfer cost |
|---|---|
| Wise | 0.25% – 1.3% |
| CurrencyFair | 0.5% – 1.8%Up to -0.8% on peer-to-peer marketplace |
| Remitly | 0.5% – 1.7% |
Exchange Rates: The Unexpected Cost (Hidden Fee)
When you look up an exchange rate on Google, you are shown a figure, which is widely known as the mid-market exchange rate. This is the mid-point between the “buy” and “sell” rates on the global currency markets.
The mid-market rate is considered the fairest and the “real” exchange rate, and it’s the same one you will find on finance authorities like Reuters or Google.
However, traditional banks or other currency exchange services are not obliged to use the real exchange rate when sending money abroad. In fact, most of the UK banks don’t. You will often find that a margin has been added to the “actual” exchange rate (or the mid-market rate) which translates into a “hidden fee”.
Let’s say you want to transfer money from the UK to the US, and the real exchange rate is 1 GBP to 1.27 USD. When you go to transfer your money, the exchange rate could easily be altered so that you only get 1.23 USD for every pound.
What does this mean? If you were to send £5,000 abroad at the real exchange rate, you would end up with $6,350. However, factoring in the adjusted exchange rate, you would only receive $6,150. The result is that you lose out on $200 simply because of an unfavourable rate.
Whilst the difference in exchange rates can impact all transactions, for larger international payments it can quickly add up – and that’s even before you factor in any charges that the recipient may incur.
If you’re purchasing property abroad, paying for a destination wedding, or sending payments to family overseas, you’ll need to find the best possible way to send money abroad from UK to avoid losing money on international transfers.
Cheapest Way to Send Money Abroad
Considering what other options are available is the first step in getting the best value for your money. Some of the most well-known and widely used ways to send money abroad are through:
- High street Banks
- Specialist Money Transfer Providers
As we have explained how, most UK banks charge a high fixed on international transfer, while some may offer a “low” upfront fee but hidden markups on exchange rates make it an expensive way of sending money abroad.
On the other hand, you can opt to use an online money transfer service – which is no doubt the cheapest way to send money abroad from UK.
Using these providers is also as safe as using a traditional bank because most of them are regulated by FCA that are obliged to safeguard your money.
How to Make a Cheap Money Transfer from the UK – Top Rated Providers
Wise (Formerly TransferWise)
Wise (formerly TransferWise) is hands down the cheapest way to send money abroad from the UK because it uses the real mid-market exchange rate and only charges one small, transparent transaction fee.
Wise is up to 6 times cheaper compared to leading UK banks (such as Barclays, HSBC Standard, and Lloyds).
- Cost: 0.25% to 1.3% of the total transfer value
- Service: Send money abroad to 80+ countries.
- Speed: 1 business day (average)
- Transfer limits: £1 – £1,000,000
- Best for: Cheap and fast for small and mid-sized transfers (up to $10,000).
CurrencyFair
CurrencyFair is one of the top-rated and credible international money transfer companies that was the first company to launch a peer-to-peer marketplace. CurrencyFair has a unique way of functioning where instead of exchanging your currency using a banking system, you exchange the money with another CurrencyFair customer.
The reason CurrencyFair is one of the cheapest ways to send money abroad is that it lets you choose what exchange rate you’d like and negotiate the rates with other users.
Over 10% of CurrencyFair users end up securing a better exchange than the mid-market rate (the “real” exchange rates that you see on Google). This, means there are chances that you end up making the cheapest money transfer possible in a given time.
- Cost: 0.5% – 1.8%
- Service: Send and receive to over 150 countries. Hold up to 20 currencies
- Speed: Average 1 day
- Best for: Negotiating the exchange rates you’d like on peer-to-peer marketplace
Remitly
Remitly is a US-based international money transfer company that is frequently one of the top 3 cheapest providers to send money overseas on various currency routes. Remitly also offers a range of GBP payments option such as bank transfers, bank payments and cash services.
Remitly is one of the cheapest ways to send money abroad via cash pick-up (including India, Mexico, and Columbia). Remitly supports 47 currencies, and you can send money to 80+ countries.
- Cost: 0.5% and 2% of the transfer value
- Service: Send money to 80+ countries. Available in Europe, USA, Canada, Singapore, and Australia
- Speed: Bank transfers take 2 to 3 business days and the card transfers arrive in minutes (usually more expensive than the normal bank transfer.
- Transfer limits: $1 – $20,000
- Best for: The cheapest way for cash pick-up or cash home delivery.
How to Send Money Abroad from the UK – Cheap and Safe?
The exact process of making an international transfer will depend on a variety of factors. However, most international transfers will break down into these basic steps:
- Choose your provider
- Enter the recipient’s details
- Make payment
- The recipient gets the money
Choosing the right provider has the biggest influence on the whole process. Whilst the concern for most people is the cost and exchange rate, other questions you should ask are:
- Is my money safe?
- Will the transfer take a long time?
- Is the process simple and easy to use?
- What do other users say about the service?
- Am I confident I’m getting the best value for money?
Cheap Money Transfer Using Wise
Online currency specialists can centralise and streamline the process.
For example, with Wise (ex TransferWise) you can get an accurate quote and compare deals without even having to log in, and the steps to making a transfer are simple.
1 Check fees and rates
Visit the Wise website for fees and rates. You can see exactly how much you will pay and compare to competitors without logging in or signing up.
2 Create a free account
Creating an account is quick and easy to do on the website. You may need a form of identification to be verified.
3 Set up a transfer
Enter the amount and the recipient’s required details. They do not need a Wise account to receive money, but must have a bank or building society account.
4 Send Wise the money
Make a local payment to Wise using online banking or your debit card.
5 Wise sends money to recipient
The recipient will receive the balance directly into their bank account with no additional fees.
It is helpful to have all the relevant recipient details to hand before starting the transfer process, but which bank account details are needed to transfer money can vary between countries. Here are some examples for popular destinations.
How to check your money is safe?
One of the biggest reservations people have about switching to a new method of money transfer is safety. Many of the high street banks in the UK have been established for well over 100 years, are clearly regulated by the Financial Conduct Agency and have earned the trust of the general public.
Online international money providers such as Wise (formerly TransferWise) are also FCA regulated to the same standard as banks, and you can check the Financial Services Register to see the authorised status.
How long does an international money transfer take?
International money transfers have become significantly quicker than in the early days when they relied on sending messages by telegraph (telegraphic transfers). These days, most international payments are made using the Society for Worldwide Interbank Financial Telecommunications (SWIFT). SWIFT helps to transfer instructions fast and accurately.
However, there are still many factors that can slow an international transfer down. These include:
Method of transfer
You can pay a premium specialist service to transfer your money almost instantly, whereas traditional bank transfers typically take longer. It can be quicker to send money online but be sure to check that your service is safe.
Currency route
The fastest international bank transfers utilise established financial relationships between banks. However, when this isn’t possible an intermediary bank is used, adding further steps to the process. Your money may go through as many as five banks before it reaches its destination6.
How much you are transferring?
Moving large sums of money around the world can raise flags for fraud. High value transfers are subject to more stringent checks that can slow the process down.
A typical international bank transfer using SWIFT can take as long as three to seven working days to complete.
Alternative options can be faster – with Wise (formerly TransferWise) the majority of payments are completed within 24 hours.
Disrupting the Market – Save Money on International Transfers
Many people still use their banks as the go-to method for international bank transfer because they think that is the safest, cheapest and easiest method.
However, currency specialist money transfer companies like Wise (formerly TransferWise) are disrupting the market and emerging as a preferable option. With simple, online innovation, international payments are just as safe and can be made cheaper and faster than before.
FAQs on Cheap Money Transfers
💰 How much money can I send abroad from UK?
International transfer limits totally depend on the provider you choose. Wise is one of the cheapest ways to send money abroad from the UK and there are no minimum limits. With Wise, you can send from £1 up to £1,000,000.
⌛ How long does an international transfer take?
While sending money abroad from abroad, you need to look at the transfer speed because it may vary from provider to provider and the payment method you choose. Typically, top UK banks averagely take around 3-5 business days to send money abroad from the UK.
The faster money transfer provider to transfer money overseas is Wise, with an average transfer time of 1 business day.
🔒 How to check your money is safe?
One of the biggest reservations people have about switching to a new method of money transfer is safety. Many of the high street banks in the UK have been established for well over 100 years, are clearly regulated by the Financial Conduct Agency and have earned the trust of the general public.
Currency specialists such as TransferWise are also FCA regulated to the same standard as banks, and you can check the Financial Services Register to see the authorised status.
