Last Updated on October 4, 2023 by Rodrigo @ OutofYourComfortZone

Top 9 most cost-effective online services for international money transfers. These platforms are user-friendly and provide instant calculations of shipping costs and final values after conversion, allowing you to confirm before making the transfer. They support over 40 different currencies across more than 70 countries, including Switzerland!

To access the complete list of the nine best options, click here.

While it may not appear directly related to travel, this topic can be incredibly valuable for travelers and immigrants who need to send or receive money from overseas. (I will explain later how this article can benefit them).

(By the way, if you or someone you know is planning or interested in living abroad, make sure to visit our page with 10 alternatives for living in other countries).

 

 

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

Throughout this article, you will come across mentions of the “official/commercial exchange rate” and the “tourist exchange rate.”

In essence, it is always more advantageous to exchange your money at the official/commercial exchange rate or the rate closest to it, as you will incur fewer losses when converting between different currencies. This rate is utilized in the financial market where large sums of money are traded (think of it as “wholesale” exchange rates).

Most of the companies I recommend below employ the official/commercial exchange rate or something very similar (I will specify if they don’t).

On the other hand, the tourist exchange rate is what you encounter when exchanging money at airports, banks, exchange offices, and so on. They use the tourist exchange rate because they have additional expenses and also aim to earn more from the transaction. This is the least favorable exchange rate available.

In simple terms, always strive to exchange currencies using the official/commercial exchange rate and NOT the retail/tourist exchange rate. We have indicated below which rate each company utilizes.

 

How to save money when sending money abroad while traveling?

As you may already know (if you’ve read my article on handling money and currency exchange while traveling), using your debit, credit, or prepaid card abroad incurs a 6.38% IOF tax on each transaction. This can accumulate to a substantial amount of money!

The most economical option would be to exchange money in your home country before traveling (purchasing dollars, euros, or other currencies at commercial rates) at banks or exchange offices and utilizing them while abroad. However, apart from not being advisable to carry a significant amount of cash while traveling, the rates offered by exchange brokers are based on the tourist rate and may not be very attractive, potentially resulting in financial losses 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. Upon arrival, they can retrieve the money in the local currency from the acquaintances who received the funds from their home country.

For instance, let’s say I am in Brazil and planning to travel to Australia, where my brother is studying. I can utilize one of the 9 companies listed below to send money to my brother’s checking account. He will then withdraw this money in dollars and return it to me once I arrive in Australia. This way, I don’t need to exchange money before departing from Brazil or immediately upon arriving in Australia.

Now, let’s delve into the 9 best and most cost-effective 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

 

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

 

 

 

 

But if so many other individuals use Western Union and MoneyGram, why should you avoid them?

Because they…

• Are extremely expensive and take a substantial percentage of the funds you are sending (For instance, MoneyGram will charge you almost 25% of the amount you are transferring – which is $22 for a $100 transfer…a complete ripoff!)
• Don’t offer online options for sending or receiving money (you must personally visit their branch and the recipient must do the same) Typically use the retail/tourist exchange rate (also known as the unfavorable rate)

 

One last time, here are the 3 ways you should NOT do international transfers to Switzerland:

#1) Banks

#2) Western Union

#3) MoneyGram

 

 

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

 

    1. Wise (formerly Transferwise)

 

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 renowned platform that facilitates international money transfers, much like Wise and CurrencyFair. It offers a similar range of services.

Additionally, Xe stands as one of the largest websites globally for checking exchange rates between any two currencies, including their historical values. This feature proves invaluable for assessing whether a specific currency is appreciating or depreciating relative to another.

To determine transfer fees, you need to create a free account with Xe in advance.

It’s worth mentioning that Xe does not provide money transfer services to certain countries. However, it serves as an excellent option for individuals from other nationalities seeking to send or receive money across 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 authorized and licensed by the National Bank of Belgium, and its headquarters are located in Brussels. Their services are available in over 150 countries, including the United States, the United Kingdom, India, Brazil, and various European countries. They support more than 90 currencies.

While WorldRemit offers transfers to Brazil, it’s important to note that they do not have a website available in Portuguese. In addition to money transfers, the company also provides mobile top-up services in over 110 destinations. They charge minimal service and exchange fees, and the first international money transfer is free of charge, with no fees applied.

 

 

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 has gained recognition as a prominent player in the international money transfer sector. Although it initially focused on serving customers in the United States, it has expanded its services to numerous countries across the globe.

A notable advantage of Remitly is its remote transfer service, which enables users to send money to another country and have it delivered to the recipient’s desired location in the form of cash through their delivery service.

In addition to the delivery service, Remitly provides 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

CurrencyFair operates in a similar manner to Wise, offering a comparable process for money transfers.

However, CurrencyFair has a drawback in terms of its currency coverage, as it supports a more limited range of currencies and does not include certain currencies like the Brazilian real.

 

 

 

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

 

 

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

 

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 reputable provider of international money transfer services catering to European individuals and visitors seeking to send money abroad.

While their services are available in over 60 countries worldwide, currently, transfers to Brazil are limited to customers with European bank accounts. Nonetheless, they offer a range of transfer options and competitive rates to their clientele.

TransferGo enables customers to initiate money transfers directly from their bank account, debit card, or credit card, offering them flexibility in choosing their preferred payment method. Customers can opt for fast transfers, which are completed within approximately 30 minutes, or low-fee economic transfers, which may take up to three days to finalize.

The transfer process is designed to be simple and user-friendly, making TransferGo a convenient and hassle-free choice for international 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 widely recognized online payment platform that facilitates transactions between parties. It is frequently utilized for making payments on popular e-commerce websites like eBay.

Although PayPal does provide international money transfer services, there is a restriction on withdrawing funds solely to a US bank account.

Nonetheless, the funds in your PayPal account can be used for making purchases at online retailers that accept PayPal payments or transferred to another PayPal user.

 

 

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)

 

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….  

Just like any important financial decision, it is essential to conduct thorough research and compare alternatives when it comes to international money transfers. By investing time in comparing exchange rates, transfer fees, and other factors, you can significantly minimize the amount of money spent on sending or receiving funds.

To streamline the process, you can select a specific amount, such as $500 USD, and evaluate each of the previously mentioned options to determine which one offers the highest value in terms of the amount received. While this may require some additional effort, it can ultimately help you save money and secure the most advantageous deal.

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. WorldNomads is ideal for adventurous travelers, backpackers, or anyone looking to be protected during their trip. They cover almost every single activity you can image! Plus, you can have a 5% discount with the coupon code comfort5.

Already reserved your hotel or hostel? If not, we recommend Booking.com. They have a huge selection of hotels and hostels all over the world. Plus, in most cases, you can cancel your reservation up to a few days before the check-in date without any costs! 

Still haven’t booked your plane ticket and want to save big? Take a look at Momondo. It’s a flight aggregator that combines several other ticket search websites to make it easier for you to compare prices and make sure you are getting the best deal. 

 

And finally, will you need to rent a car during your trip? Then check out Rentalcar.com to search and compare car rental companies from all over the world in a single website. Then, you can find the cheapest price for the best car!