The cheapest way depends on where the money is going and how fast you need it there
International transfers cost money in three ways: the exchange rate the bank uses (which is usually worse than the real one), a flat fee per transfer, and sometimes a percentage of the amount. The cheapest option for you depends on the destination country, the amount you're sending, and how many days you can wait. A wire transfer through your bank might cost $25 to $50 and take three to five business days. A money transfer service like Wise or OFX might cost $2 to $10 and use a real exchange rate, but only works to certain countries. Cryptocurrency and peer-to-peer services exist but carry their own risks and limits.
The real cost is not just the fee you see — it's the fee plus the gap between the exchange rate you get and the mid-market rate (the real one). A bank might charge you $30 and give you an exchange rate that's 2 to 3 percent worse than the real rate. A money transfer service might charge $5 and give you the real rate, or very close to it. On a $1,000 transfer, that difference can be $20 to $50.
Key Takeaways
- Money transfer services like Wise, OFX, and Remitly usually cost less than banks because they charge lower fees and use real exchange rates instead of marked-up ones.
- The total cost of any transfer is the stated fee plus the difference between the exchange rate you receive and the mid-market rate — compare both before you choose.
- Bank wire transfers are slower and more expensive but work to almost every country; money transfer services are faster and cheaper but only serve certain destinations.
- Transfers to countries with many immigrants — Mexico, Philippines, India, Nigeria — have the most options and the lowest costs because competition is highest.
- The amount you're sending matters: small transfers under $500 may have a higher percentage cost, while large transfers over $5,000 sometimes may have access to for better rates.
How banks, money transfer services, and other routes compare
A traditional bank wire transfer goes through the SWIFT system, which is slow and expensive. Your bank charges a fee (usually $25 to $50), takes a cut on the exchange rate (usually 2 to 3 percent), and the receiving bank may charge another fee on the other end. The whole process takes three to five business days. You use this route when the destination country has no money transfer service, or when you need to send a very large amount and the receiving bank requires it.
Money transfer services like Wise, OFX, Remitly, and MoneyGram operate differently. They hold accounts in many countries and move money between their own accounts rather than through SWIFT. This is faster (often one to two business days) and cheaper (fees of $2 to $10 for most transfers). They use the real exchange rate or very close to it. The catch: they only serve certain countries. Wise works to over 80 countries. Remitly works to about 50. OFX works to about 190 but is less common in the US. Check whether your destination is on their list before you open an account.
Peer-to-peer services like PayPal and Wise also offer person-to-person transfers, but the fees and rates vary by country and the amount. PayPal's international transfer fee is usually 3 to 4 percent of the amount plus a flat fee, which is higher than Wise or OFX for most transfers. Use PayPal only if the recipient already has a PayPal account and you're sending a small amount.
Cryptocurrency (Bitcoin, Ethereum, stablecoins) can move money across borders with no intermediary, but it requires both you and the recipient to own crypto wallets, understand how to use them, and accept the risk of price swings and scams. It is not a practical route for most people sending money to family or paying bills.
What to check before you send: fees, rates, and speed
Before you choose a service, get a quote from at least two. Most services let you enter the amount, the destination country, and the currency, and they show you the fee, the exchange rate they'll use, and the amount the recipient will get. Write down the total cost (fee plus the difference between their rate and the mid-market rate) and the delivery time. The cheapest option is not always the fastest, and the fastest is not always the cheapest.
The mid-market rate is the real exchange rate — the one you see on Google or XE.com. If you're sending $1,000 USD to Mexico and the mid-market rate is 17 pesos per dollar, the recipient should get 17,000 pesos (minus fees). If a service gives you a rate of 16.5 pesos per dollar, you're losing 500 pesos (about $30) to the markup. A service that charges $5 in fees but uses a 16.8 rate is cheaper than one that charges $0 in fees but uses a 16.2 rate.
Speed matters if you're sending money for an emergency or paying a bill on a important date. Bank wires take three to five business days. Most money transfer services take one to two business days. Some services offer same-day delivery for an extra fee. If the recipient needs the money in a few hours, you may have no choice but to pay extra or use a service like Western Union, which is expensive but fast.
Money transfer services ranked by cost and coverage
| Service | Typical Fee | Exchange Rate | Speed | Countries Served |
|---|---|---|---|---|
| Wise | $2–$10 | Mid-market or very close | 1–2 business days | 80+ |
| OFX | $0–$15 | Mid-market or very close | 1–2 business days | 190+ |
| Remitly | $2–$15 | Mid-market or close | 1–3 business days | 50+ |
| Bank wire (SWIFT) | $25–$50 | 2–3% markup | 3–5 business days | Most countries |
| Western Union | $5–$30 | 2–4% markup | Minutes to 1 day | 200+ |
| PayPal | 3–4% + $1–$5 | 1–2% markup | 1–3 business days | 190+ |
Wise is the cheapest for most transfers to common destinations (Mexico, UK, Europe, Australia, Canada). OFX is better if you're sending to a less common country or a large amount. Remitly is competitive for transfers to Southeast Asia and Africa. Western Union is expensive but useful if you need cash picked up in person or if the recipient has no bank account. PayPal is only worth using if both of you already have accounts and the amount is small.
How to set up and send your first transfer
Open an account with the service you chose. You'll need your name, address, phone number, and email. Most services verify your identity by asking for a government ID (driver's license or passport) and may ask for proof of address (a utility bill or bank statement). This takes a few minutes to a few hours.
Enter the recipient's details. For a bank transfer, you need their full name, bank name, account number, and routing number (or IBAN and BIC code if they're outside the US). For a cash pickup (Western Union), you just need their name and the country. For a mobile wallet (some services in Africa and Asia), you need their phone number. Double-check the spelling of names and the account number — a mistake means the money goes to the wrong person and can be hard to recover.
Enter the amount you want to send. The service shows you the fee, the exchange rate, and the amount the recipient will get. Review this carefully. If it looks right, approve the transfer and choose how to pay: bank account, debit card, or credit card. Bank account is usually free or cheapest. Debit and credit cards may add a 1 to 3 percent fee. Complete the payment and you're done. The money usually arrives in one to two business days.
When to use your bank instead of a money transfer service
Use your bank's wire transfer when the destination country is not served by any money transfer service, or when you're sending a very large amount (over $10,000) and the receiving bank requires a SWIFT wire for security or record-keeping. Some countries, especially smaller ones or those with strict currency controls, only accept bank wires.
Also use your bank if you have a relationship with them that includes perks. Some banks waive wire fees for customers with high balances or premium accounts. Some credit unions offer cheaper international transfers than commercial banks. Ask your bank what they charge before you assume a money transfer service is cheaper.
If you send money regularly to the same person or country, ask your bank about setting up a standing order or recurring transfer. Some banks discount repeat transfers, and the convenience of one-click sending might be worth a slightly higher cost.
Avoid these common mistakes
Do not assume the exchange rate shown on Google is the rate you'll get. Google shows the mid-market rate, which is what banks trade at. You will always get a slightly worse rate because the service needs to make money. Compare the actual rate each service offers, not the mid-market rate.
Do not send a test transfer of a small amount first unless you're sure the recipient's bank details are correct. Each transfer costs a fee, so two transfers cost twice as much. If you're unsure about the account number, call the recipient's bank or ask the recipient to confirm it in writing.
Do not use a credit card to pay for the transfer unless you have no other choice. Credit card companies often treat international transfers as cash advances and charge a 3 to 5 percent fee plus interest from day one. Use a debit card or bank account instead.
Do not send more than you need to cover the amount plus fees. If the recipient needs $500 and the fee is $10, send $510, not $600. Any extra money sitting in their account is your money, not theirs, and moving it back costs another fee.
Frequently Asked Questions
What's the difference between a bank wire and a money transfer service?
A bank wire goes through the SWIFT system and takes three to five days. It costs $25 to $50 and uses a marked-up exchange rate. A money transfer service holds accounts in both countries and moves money between them, taking one to two days and costing $2 to $10 with a real or near-real exchange rate. Money transfer services are cheaper and faster but only work to certain countries.
How do I know if a money transfer service is safe?
Use services that are licensed and regulated in the US. Wise, OFX, and Remitly are all registered with FinCEN (the Financial Crimes Enforcement Network) and regulated by state money transmitter laws. Check the service's website for their license number. Avoid services with no clear licensing information or no customer support phone number.
Can I send money to someone without a bank account?
Yes, but your options are limited. Western Union and MoneyGram let the recipient pick up cash at a physical location. Some money transfer services in Africa and Asia let you send to a mobile wallet or airtime credit. Ask the recipient what payment methods are available in their country, then choose a service that offers one of them.
What happens if I send money to the wrong account?
Contact the service when ready. If the transfer hasn't been delivered yet, they may be able to stop it. If it has been delivered, you'll need to contact the receiving bank and ask them to reverse it — this can take weeks and may not work if the recipient has already withdrawn the money. Always double-check the account number before you send.
Is cryptocurrency a good way to send money internationally?
Cryptocurrency can move money across borders with no intermediary, but both you and the recipient need crypto wallets, and you both need to understand how to use them. The price can swing 5 to 10 percent in a day, so the amount the recipient gets may be very different from what you intended. For most people sending money to family or paying bills, a money transfer service is simpler and safer.