Here are the top nine options for cost-effective and user-friendly international money transfers. You can easily calculate shipping fees and the final amount after conversion before confirming the transfer. These services support over 40 currencies across more than 70 countries, including transactions with Nigeria!

To access the complete list directly, click here.

Although this topic may not seem directly relevant to travel, it can be incredibly valuable for individuals who are traveling or have loved ones residing overseas and require money transfers. Later on, I will explain how this article can be advantageous for travelers and immigrants.

(By the way, if you or someone you know is considering or interested in living abroad, do check out our page featuring 10 alternatives for expat living.)

 

 

 

Here are some scenarios where you can use the services of some of the companies that will be mentioned below to send money to other countries:

So let’s get started!

 

 

 

Important note: Official/spot exchange rate vs. retail/tourist exchange rate

In this article, we will explore the benefits of using the official/commercial exchange rate versus the tourist exchange rate when exchanging money. The official/commercial exchange rate, similar to a “wholesale” rate, is used in the financial market where large amounts of money are traded. It is recommended to use this rate or the closest rate to it as it results in less money lost during currency conversion.

Most of the companies listed below use the official/commercial exchange rate or a rate very close to it. We will make note of the companies that don’t use this rate.

On the other hand, the tourist exchange rate is used when exchanging money at airports, banks, and exchange offices. These entities use the tourist exchange rate to cover their costs and earn a profit from the transaction, resulting in the worst exchange rate available.

To save money when sending money abroad while traveling, it’s best to avoid using debit, credit, or prepaid cards abroad as they result in a 6.38% IOF fee on the value of each transaction. Instead, it’s more economical to exchange money in your home country before traveling, buying dollars, euros, or other currencies at commercial rates from banks or exchange offices.

However, carrying large amounts of cash is not advisable, and the rates used by exchange brokers are usually the tourist rate and may not be very attractive, resulting in you losing money during the transaction.

A more cost-effective alternative for travelers is to use one of the options below to send money to family and friends in the countries they will be visiting on their trip. This way, when they arrive in that country, they can retrieve the money back in the local currency from acquaintances who received the money from their home country.

For example, suppose someone is in Brazil and plans to travel to Nigeria, where their brother is studying. In that case, they can use one of the nine companies below to send money to their brother’s checking account. Their brother can retrieve the money in Australian dollars and give it back once they arrive in Nigeria. This way, they don’t need to exchange money before leaving Brazil or right after arriving in Nigeria.

Now, let’s dive into the nine best and most affordable companies and websites for sending, receiving, and transferring money abroad. But first…

 

What’re the 3 ways you should NEVER send and receive money abroad?

 

#1) BANKS

A widespread misunderstanding among people all over the world is that banks are a convenient and cost-effective option to send or receive money globally. However, this is far from the truth!

Sending international transfers through banks is extremely expensive! Banks use SWIFT code (or BIC) and IBAN for inbound and outbound global wire transfers…and they will exploit you!

Usually, they charge a percentage of the total transfer amount and a fee that can be nearly as much as the transfer itself…and on top of that, the exchange rate they offer is unfavorable! So, if you use a bank to send money to another country, you will likely end up losing a significant amount of money.

For instance, if you utilize an American bank to send money to a European bank, fees can easily accumulate to at least $45 for a single wire transfer (in addition to an unfavorable exchange rate).

Xe (one of the companies I recommend below) provides a comprehensive comparison of their rates versus the rates of major banks for global wire transfers (previously known as HiFX, which was acquired).

 

 

And this table gives you an idea of the fees charged by banks for incoming and outgoing international wire transfers…ouch!

 

 

#2) and #3) Western Union or MoneyGram

 

 

 

 

 

Then what are the cheapest and most practical ways to do international money transfers?

 

    1. Wise (formerly Transferwise)

Wise, previously known as TransferWise, was established by the group that created Skype and is commonly known as one of the most cost-effective and user-friendly choices for international money transfers. It’s also my personal favorite and the one I use the most.

Using Wise is straightforward, requiring only a bank account in the currency of the recipient’s country (which doesn’t need to be in your name, making it ideal for sending money to family and friends).

To begin, select the currency and amount you want to send (for instance, USD to EUR) and enter the transfer amount (such as $1000 USD). Wise will provide you with the final amount the recipient will receive in euros, including all fees, taxes, and other costs.

It’s worth noting that Wise employs Google’s official exchange rate for all currency conversions, ensuring the best possible rate for all currencies and transfer directions.

After that, enter the required registration information and the recipient’s bank information (even if it’s your own foreign account). Wise will provide you with a bank transfer slip to pay the transfer amount, with no additional fees for generating the slip. You can pay the slip at a bank, even if you don’t have an account there, or online via internet banking from home.

In some circumstances, depending on the country of origin, you may also be able to transfer funds to Wise via domestic transfer, debit card, or credit card (although using a credit card may result in additional fees).

The transfer should be deposited into the recipient’s account within 1-3 business days.

 

 

And notice that the currency exchange rate from Wise is pretty much the same as the official one given by Google!

 

 

Pros of using Wise for international money transfers:

• It’s the cheapest way to transfer money I’ve found– their fee is only around 0.35% of the total transfer value
• They use the official exchange rate (which is much better than the “tourist” exchange rate)
• It’s super practical – you can do everything online
• It’s cheaper and easier than sending money internationally using banks
• There isn’t a minimum transaction amount
• You can use Wise to transfer money overseas for your Business and pay suppliers or employees
• You can send money to more than 40 countries plus all the countries that use the Euro (19 in total) *
• You can receive payments worldwide

 

By the way, if you want to send money to Spain, Portugal, Ireland, or other countries that use the Euro, the process is the same. All you need is to select Euro when you begin your transfer and then put the info of the bank account in the country receiving the money.

 

*Countries that use the Euro:

Germany, Austria, Belgium, Cyprus, Slovakia, Slovenia, Spain, Estonia, Finland, France, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, The Netherlands, Portugal, Andorra, Monaco, San Marino, the Vatican, Kosovo, Montenegro.

 

Cons of using Wise for international money transfers:

• Until recently, it was not possible to send money if the person did not have a current account in the destination country of the transaction. But now, with Wise’s digital and physical cards, you can make payments directly from your account on the platform, but check availability in your region!

However, if in the country you are in this service is not yet available, an easy way to circumvent this problem is by using the checking account of someone you trust. Here in Sweden, for example, I helped a fellow Brazilian receive money here from his family in Brazil. They transferred the money to my Swedish bank account, I withdrew the money from the ATM and gave it to him.

 

Personal experience with Wise:

I’ve used Wise to send money from the United States to Brazil (which can be done with a credit card!), from the United States to Sweden, from Australia to Sweden, from Australia to Sweden, and from Sweden to the United States. It’s always worked smoothly for me! So, I’d definitely recommend it.

 

If you want to see, here’s a video explaining how Wise works:

 

 

 

    2. Xe

Xe is a reputable platform that offers international money transfer services. Along with CurrencyFair and Wise, it is considered a reliable option for transferring money across borders.

Additionally, Xe is one of the largest websites globally for comparing exchange rates between any two currencies, including their historical values. This feature is particularly useful in determining whether a particular currency is increasing or decreasing in value against another.

To determine transfer fees, you must sign up for a free account with Xe in advance.

It’s important to note that Xe does not offer money transfer services to certain countries. However, it remains an excellent choice for people of other nationalities who wish to send or receive money from various countries worldwide.

 

 

PROS of using Xe for international money transfers:

• Xe does not have a minimum or maximum limit for the transfer value.
• They charge a relatively low fee to send and receive money from abroad (for example: for transfers up to 500 USD a fee of 3 USD is charged)
• They don’t charge any fees to send or exchange abroad
• They use a rate close to the official rate
• It’s super practical – you can do everything online
• You can send money to more than 26 countries plus all the countries that use the Euro

You can see which currencies they work with on their homepage here.

And you can easily sign up on Xe for free to check how much you’d save on a transfer.

 

Cons of using Xe to transfer money:

• They don’t with all currencies
• You must open an account before getting a quote for the cost of your transfer…..but it’s free to open an account and super fast
• Sometimes it costs more to transfer with Xe than with Wise or CurrencyFair because their rates aren’t always as good (you’ll have to compare for your individual transaction to see what is best)

 

My personal experience with Xe: 

Honestly, I’ve never used Xe. But I have a friend who tried using it to send money from the United States to Sweden and she said everything worked just fine and the cost was pretty good. Plus, I use them all the time to check currency exchange rates when I’m traveling overseas. 

 

 

   3. WorldRemit

WorldRemit is a company that is licensed and supervised by the National Bank of Belgium, with its headquarters located in Brussels. Its services are available in more than 150 countries, such as the United States, the United Kingdom, India, Brazil, and multiple European nations.

The company supports more than 90 currencies and offers mobile top-up services in over 110 destinations. It imposes low exchange and service fees, and the first international money transfer is free of charge.

 

 

Pros of using WorldRemit for international money transfers:

• Low fees and first free transfer
• Services available in several countries
• Cell phone recharge option

 

Cons of using WorldRemit for international transfers:

• No website in Portuguese

 

Personal experience with WorldRemit: WorldRemit really does work at low rates, so it’s worth making a quote through this site and comparing it to others on the list. Also, your first download is completely free!

 

 

   4. Remitly

Remitly is a well-known and established company in the global money transfer market. Although it initially served only the United States, it has now expanded its services to numerous other countries worldwide.

One of the unique features of Remitly is its ability to transfer money remotely. This means that users can send money to a different country and have it delivered in cash to the recipient’s preferred location using Remitly’s delivery service.

Besides the delivery service, Remitly also offers online transfers to both traditional and digital bank accounts.

 

 

Pros of using Remitly for international money transfers:

• Remittance option delivered in cash to the desired address;
• Simple and super practical interface;
• Transfer option for digital accounts.

 

Cons of using Remitly for international transfers:

• The site is not available in Portuguese;
• Compared to other companies on the list, it does not work with a large number of countries.

 

Personal experience with Remitly:

I’ve never used Remitly, but user feedback is pretty positive. This is really a great option if you need to send money to someone who is not comfortable with technology or if you need cash on hand for a trip, for example.

 

 

    5. CurrencyFair

 

 

Pros of using CurrencyFair for international money transfers:

• It’s a super cheap way to send and receive money from other countries – they only charge around 0.35% of the total value, like Wise does
• They use the official exchange rate (which is much better than the “tourist” rates banks use)
• It’s super practical – you can do everything online
• You can send funds to more than 18 countries, including those that use the Euro
• As with Wise, you can use CurrencyFair for your Business to pay suppliers or employees
• It’s cheaper and faster than doing international transfers with a bank
• There isn’t a minimum transaction amount
• Now they are also working with Indian Rupee (INR)

 

Cons of transferring money with CurrencyFair:

• It only works with about half the number of currencies Wise does

 

Personal experience with CurrencyFair:

I’ve also used CurrencyFair to send money from the United States to Sweden, and it worked just as well as Wise did.

Here’s a quick video on how to sign up for free:

 

 

And how to do a transfer with CurrencyFair:

 

 

 

   6. Instarem

Instarem is a financial technology firm that specializes in global currency exchange and money transfer services. It was established in 2014 in Singapore and has expanded to over 25 countries worldwide. Instarem uses advanced technology to provide its clients with efficient, convenient, and cost-effective financial services.

The company offers competitive rates, which are transparently displayed for customers. Additionally, Instarem has a rewards program that enables customers to earn points when they make fast and hassle-free money transfers from anywhere.

Instarem also provides a range of travel insurance products, including coverage for medical emergencies, trip cancellations, lost baggage, and other unforeseen incidents. Its insurance solutions are customized to meet the unique needs of each client and can be easily purchased through the mobile app or website. Instarem partners with top insurance providers to ensure that its customers receive the most optimal coverage.

 

 

 

Pros of using Instarem for international money transfers:

• The company is present in more than 25 countries, which allows it to serve a wide variety of customers around the world. In addition, the company’s geographic expansion has been constant and promising.
• Great Value: Low fees. Great exchange rates. nothing hidden
• Secure and reliable: Industry-leading technology moving $4 billion annually
• Rewards: Send money and earn points to enjoy even greater value
• Save time: skip the lines and send money quickly
• Anytime, Anywhere: Send money anywhere with our app

 

Cons of transferring money with Instarem:

• Transfer Fees and Limitations: Like any financial services company, Instarem charges money transfer fees and sets limits on transactions. This can make the company’s services less accessible to customers with lower purchasing power or who need to send large amounts of money.

 

Personal experience with Instarem:

Although I have never used Instarem, user feedback is generally very positive. This can be an excellent choice if you need to send someone money!

 

 

   7. Ria

Ria is a prominent global money transfer firm that has been providing its services to individuals worldwide since its establishment in 1987. The company is based in the United States and has continuously expanded its global reach over time.

Ria’s offerings comprise wire transfers, bank deposits, and bill payments, and it boasts a vast network of over 436,000 agent locations in more than 160 countries globally.

The company strives to provide secure, convenient, and cost-effective options to people and families who require to send money to their relatives and friends worldwide.

 

 

Pros of using Ria for international money transfers:

• Ria has a global presence with over 436,000 agent locations worldwide, which makes sending and receiving money more convenient for its customers;
• Ria offers a wide range of payment options, including wire transfers, bank deposits and bill payments.

 

Cons of using Ria for international transfers:

• Ria imposes daily and monthly limits on the amount a customer can transfer, which can be an inconvenience for those who need to send large amounts of money;
• Ria may charge additional fees, depending on the destination country and the payment method selected by the customer;
• Ria may require customers to go through an identity verification process, which can be time consuming and inconvenient.

 

Personal experience with Ria:

Although I don’t have personal experience with Ria, user feedback is often highly positive. This can be an excellent option if you need to send someone money.

 

 

Bonus: Online International Money Transfer Companies

 

   Bonus 1. TransferGo

TransferGo is a prominent European firm that specializes in international money transfers for European residents and travelers who require to send money abroad.

Their services are accessible in over 60 countries globally, however, at present, sending money to Brazil is only feasible for clients with European bank accounts. Despite this, they offer various transfer choices and favorable rates for their customers.

TransferGo offers customers flexibility by permitting them to transfer funds from a bank account, debit card, or credit card. Customers can select between fast transfers that can be processed in as little as 30 minutes or low-cost economy transfers that may take up to three days to complete.

The transfer procedure is straightforward and user-friendly, making TransferGo a convenient and hassle-free option for global money transfers.

When making transfers with TransferGo, you can use this code or coupon: HMSESq

 

 

Pros of using TransferGo for international money transfers:

• There are no daily limits for transfers on TransferGo
• They work with fast transfer options (for a fee of £2.99)
• They allow transfers directly from your bank account, debit card or credit card to foreign accounts
• They have a simple and practical interface to receive money from abroad

 

Cons of using TransferGo for international transfers:

• Each transfer may not exceed the $30,000.00 limit
• It is not possible to transfer money from the USA, Canada, among other countries to Brazil

 

Personal experience with TransferGo:

If you are looking for a company to transfer money from Europe to the rest of the world, this is a great option. In my experience, the whole process is done very simply and cheaply.

 

 

   Bonus 2. OFX

 

 

   Bonus 3. PayPal

Paypal is a prevalent online payment platform used to conduct transactions with other parties. If you have ever shopped on eBay, it is highly likely that you have used Paypal to make a payment.

Paypal also offers international money transfer services. However, it is important to note that you cannot withdraw funds from your Paypal account without a linked US bank account.

One possible solution is to use the funds in your Paypal account to make purchases at online retailers that accept Paypal as a form of payment. Alternatively, you can transfer your Paypal balance to another individual or convert it to a different currency for a small fee.

 

 

Pros of using Paypal for international transfers:

• It’s a very easy and practical way to send/receive money between almost any two people in the world
• It’s very popular
• You can use it to send/receive payments from overseas from any person that also has Paypal (since you only need an email to open an account)
• It’s super practical – you can do everything online.
• Works for people from all over the world (although you can only withdraw the money if you have a U.S. bank account)
• There’s no minimum transaction

 

Cons of using Paypal for international transfers:

• You can’t take money out of your Paypal wallet (if someone sends it to you) unless you have a bank account in the United States (otherwise, you’ll have to leave it in your Paypal account and can only use the money to buy things on websites that accept Paypal, like eBay)
• They charge a 3% fee on some transfers
• They don’t use the official exchange rate (they use the retail/tourist rate instead), so you’ll lose some money when you exchange from one currency to the other

 

Personal experience with Paypal:

I use Paypal directly to buy things on eBay and to receive payments from a few companies that only pay with Paypal. But I don’t use it for international transfers because I think the exchange rate is bad and the options above are better, so it’s up to you.

 

 

BONUS CRIPTO:

How to do international transfers using digital currency

 

• Coinbase (for getting digital currencies like Bitcoin, Ethereum, and Litecoin)

I suggest considering Coinbase as a reliable option for international money transfers using digital currencies like Bitcoin. As the largest cryptocurrency exchange globally, Coinbase has a strong reputation in the industry.

To begin, you’ll need to create a free account on Coinbase and provide your personal information. You can then transfer funds from your bank account to your digital wallet and purchase the digital currency of your choice. Coinbase offers three digital currencies to choose from: Bitcoin, Ethereum, or Litecoin.

Once you have acquired your preferred cryptocurrency, you can send it to anyone worldwide with a digital wallet by entering their wallet address and initiating the transfer from your own digital wallet.

When the recipient receives the cryptocurrency, they can exchange it for their local currency, such as Brazilian reais, euros, or US dollars, and transfer the funds to their bank account using the Coinbase platform.

Coinbase’s user-friendly interface and straightforward process make it a convenient option for international money transfers. Moreover, if you’re interested in investing in digital currencies, Coinbase is a trustworthy choice due to its size and reputation.

 

 

 

How to invest in Bitcoins or other digital currencies

So be careful with investing in digital currencies! Don’t use money that you’ll need in short or midterm!

 

Pros of using cryptocurrency for international transfers through Coinbase:

• It’s a cheap way to send money between almost any two countries in the world
• It’s getting more and more popular
• You can use your bank account, debit card, or credit card to do the deposit into your digital wallet in Coinbase
• You can use it to receive payments from overseas from any person that has their own digital wallet (your digital wallet can be through Coinbase or any other platform that works with cryptocurrency)
• It’s very easy – you can do everything online
• There’s no minimum transaction

 

Cons of using cryptocurrency for international transfers through Coinbase:

• The value of the digital currencies still varies a lot (AKA: it’s highly volatile), so it’s possible that the amount you send may already be worth more or less by the time it arrives at the destination
• You have a pay a fee of a small percentage of the total value you deposit in Coinbase. If you use a credit card, this fee can be up to 3%
• It can take a few days for the purchase of Bitcoin to be finalized. With Ethereum and Litecoin, the buy and sell confirmation is faster
• It’s a new market and many people still don’t know how it works

 

Personal experience with Coinbase:

 

Summing up…

The 7 cheapest ways to receive, send, and transfer money abroad:

1. Wise
2. Xe
3. World Remit
4. Remitly
5. Currency Fair
6. Instarem
7. Ria
8. TransferGo
9. OFX
10. Paypal
11. Coinbase

 

In Brief….  

As with any significant financial decision, it is essential to conduct thorough research and compare various options when transferring money internationally. Analyzing exchange rates, transfer fees, and other relevant factors can significantly impact the amount of money you send or receive.

One useful approach to streamline the process is to select a specific amount, such as $500 USD, and test each of the aforementioned options to identify which one offers the most value in terms of the amount received. Although it may entail additional effort, it can ultimately save you money and assist you in finding the most favorable deal available.

 

Protect yourself against fraud and common scams with international money transfers!!

Use only the companies listed above to transfer money to trusted individuals or reputable companies with positive feedback. Do not transfer money to anyone you don’t know personally. Additionally, be cautious if a family member or friend sends you an urgent message requesting money but you are unable to contact them through phone, Skype, WhatsApp, or other reliable means.

 

By paying attention to strange signs like the ones below, you can tell if you’re being the victim of a scam or not….and then avoid it if you are. Think very carefully before making a transfer. If you’re not sure, don’t take the risk!

Don’t send/transfer money to people or companies:

• If you or your family/close friends don’t know them personally
• For a deposit to buy a property or a rent payment. Take note of this one because it is one of the most common scams for people that live abroad!  ONLY send them if you are personally in the city where you are renting and you have personally visited the property & met with the agent/landlord of the place that’s to be rented or purchased. Seriously, this scam is a lot more common than you think….and a lot of people who move abroad get screwed by it!
• To buy something online. You shouldn’t have to use an international transfer for this, better to use a credit card or Paypal (which have payment protections)
• From a place claiming to protect you from a virus that doesn’t accept credit cards (since all trusted antivirus companies should)
• For an emergency situation that hasn’t been confirmed by a friend or family member
• To “redeem” lottery winnings or prizes….another super common scam!
• To make charitable donations. Ask for another way to contribute…be wary of any charity asking for international money transfers
• To start working as a mystery shopper. You should never have to pay for this, it’s free!
•   To get a job….this is always a scam! Don’t pay a company to start working with them!
• For a credit card fee or loan. These fees are ALWAYS paid via your credit card and not through international money transfers

Use only the companies listed above to transfer money to trusted individuals or reputable companies with positive feedback. Do not transfer money to anyone you don’t know personally. Additionally, be cautious if a family member or friend sends you an urgent message requesting money but you are unable to contact them through phone, Skype, WhatsApp, or other reliable means.

 

Conclusion…

 

Planning your next trip?

Then don’t forget travel insurance! You don’t want to get stuck paying a ton of money and ruining your trip if you get sick or have an accident without travel insurance. Our page with The 3 Best and Cheapest Travel Insurance on the Market can help you choose the right plan and will give you some discount coupons for the biggest insurance companies!

 

 Already reserved your hotel or hostel? If not, our article with The 6 Best and Cheapest Websites to Find & Reserve Accommodation can help you out. You’ll also find some promotions and discount codes.

 

 Still haven’t booked your plane ticket and want to save big? Take a look at our page with 16 Tips to Save on Flights where you’ll also find the 4 best websites to buy your plane tickets. 

 

And finally, will you need to rent a car during your trip? Then surely our page with The 5 Best and Cheapest Websites to Compare and Rent Cars Around the World will help you choose the best rental car and find a good deal.