7 Cheapest Ways to Receive, Send, and Transfer Money from Turkey

 

 

 

Here are some scenarios in which you might find the services of the companies mentioned below useful for sending money to other countries:

 

 

 

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

In this article, we will explore the difference between the “official/commercial exchange rate” and the “tourist exchange rate.”

To put it simply, it is always more advantageous to exchange your money at the official/commercial exchange rate or the closest available rate. This helps minimize losses when converting currencies. The commercial exchange rate is the rate used in the financial market for trading large sums of money, similar to “wholesale” exchange rates.

Most of the recommended companies below utilize the official/commercial exchange rate or a very similar rate, with a few exceptions that we will mention.

On the other hand, the tourist exchange rate is the rate offered at airports, banks, and exchange offices when you exchange money. They apply this rate to cover additional costs and make a profit from the transaction. This is the least favorable exchange rate.

Therefore, it is important to always aim for the official/commercial exchange rate and NOT the tourist exchange rate when exchanging currencies. We have indicated which rate each company uses in the list below.

 

How to Send Money Abroad and Save Money While Traveling?

As you may remember from our previous article on managing money and currency exchange while traveling, using your debit, credit, or prepaid card abroad incurs a 6.38% IOF charge on each transaction. This can add up to a significant amount!

The most cost-effective option is to exchange money in your home country before traveling, purchasing dollars, euros, or other currencies at commercial rates from banks or exchange offices, and using them while abroad. However, carrying a large amount of cash while traveling is not advisable, and the rates offered by exchange brokers are often tourist rates and may not be very favorable, resulting in a loss of money.

A more affordable alternative for travelers is to use one of the options below to send money to family and friends in the countries you plan to visit during your trip. Upon arrival, you can collect the money in the local currency from the acquaintances who received the funds from your home country.

For example, if you’re in Brazil and planning to travel to Australia where your brother is studying, you can use one of the nine companies listed below to transfer money to your brother’s checking account. He can withdraw the funds in dollars and return it to you upon your arrival in Australia. This way, you don’t have to exchange money before leaving Brazil or upon arriving in Australia.

Now, let’s explore the nine 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

Many individuals worldwide mistakenly assume that using a bank is a straightforward and cost-effective method for sending or receiving international funds. However, this couldn’t be further from the truth!

International transfers conducted through banks can be incredibly COSTLY! Banks typically employ SWIFT code (or BIC) and IBAN for incoming and outgoing global wire transfers… and they will take advantage of you!

They often impose a percentage-based fee on the total transferred amount, accompanied by charges that can sometimes be nearly equivalent to the transfer itself… and to exacerbate matters, the exchange rates they offer are typically unfavorable! Hence, if you opt for a bank to transfer money to another country, you are likely to incur significant unnecessary losses.

For instance, when utilizing a US bank to transfer money to a European bank, fees can rapidly accumulate to at least $45 for a single wire transfer (in addition to receiving a poor exchange rate).

Xe (one of the recommended companies below) provides a comprehensive comparison of their rates with those of major banks for global wire transfers (previously known as HiFX, which they 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

 

 

 

 

These are two of the largest money transfer companies worldwide. Unfortunately, this also implies that many people use them and unwittingly waste their money, simply because they are unaware of better alternatives.

But if so many others use Western Union and MoneyGram, why should you steer clear of them?

Because they…

• Are exorbitantly costly and charge a significant percentage of the funds you are sending (For example, MoneyGram will charge you nearly 25% of the amount you are transferring – which is $22 for a $100 transfer…an absolute ripoff!)
• Do not provide online options for sending or receiving money (you must personally visit their branch and so must the recipient) 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 Turkey:

#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 reputable and well-established online platform that facilitates international money transfers. Similar to CurrencyFair and Wise, Xe also offers this service.

Moreover, Xe is one of the largest websites globally that enables you to compare exchange rates between any two currencies, including their historical values. This feature is particularly valuable in assessing whether a specific currency is appreciating or depreciating in relation to another.

To determine the transfer costs, you will need to register for a free account with Xe.

It’s important to note that Xe may not offer money transfer services to certain countries. However, it serves as an excellent alternative for individuals from other nationalities who intend to send or receive funds 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, headquartered in Brussels, is a fully authorized company regulated by the National Bank of Belgium. It operates worldwide, serving over 150 countries, including the United States, the United Kingdom, India, Brazil, and several European countries, and supports transactions in more than 90 currencies.

Aside from its money transfer services, WorldRemit also offers mobile top-up services in over 110 locations. They apply minimal service and exchange 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-established and recognized name in the global money transfer industry. While it initially operated exclusively in the United States, it has since expanded its services to several countries worldwide.

One standout feature of Remitly is its remote remittance option, which enables users to send money to another country and have it delivered to the recipient’s preferred location as physical cash through Remitly’s delivery service.

Moreover, in addition to their convenient delivery service, Remitly also offers online transfers to both traditional bank accounts and digital 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 global financial technology (fintech) company that specializes in currency exchange and money transfer services. Founded in Singapore in 2014, the company operates in more than 25 countries and leverages advanced technology to provide efficient, cost-effective, and convenient financial solutions to its clients.

One of the notable advantages of using Instarem is its competitive exchange rates, which are transparently displayed for customers to see. Additionally, they offer a rewards program where users can earn points for fast and convenient money transfers from anywhere.

When it comes to travel insurance, Instarem offers comprehensive coverage for various situations, including medical emergencies, trip cancellations, and lost baggage, among others. Their insurance products are tailored to individual needs and can be easily purchased through their mobile app or website. Instarem also partners with leading insurance providers to ensure that customers receive the best possible 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 is a well-known global financial services company that specializes in providing money transfer solutions. Founded in 1987 and headquartered in the United States, Ria has established a strong presence worldwide.

Ria offers a comprehensive suite of services, including wire transfers, bank deposits, and bill payments. What sets Ria apart is its extensive international network, which consists of over 436,000 agent locations spread across more than 160 countries.

The company’s main focus is to offer secure, convenient, and affordable money transfer options to individuals and families who wish to send funds to their loved ones anywhere in the world. Ria’s goal is to make the process of transferring money hassle-free, ensuring that people can support their families and friends with ease.

 

 

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 well-known financial institution headquartered in Europe, specializing in international money transfer services for European residents and visitors who need to send money overseas.

Their services are accessible in more than 60 countries worldwide, excluding Brazil, where they exclusively serve customers with European bank accounts. However, TransferGo offers customers a range of transfer options at competitive rates.

Customers have the flexibility to initiate transfers directly from their bank accounts, debit cards, or credit cards. TransferGo provides both fast transfers, which can be completed within 30 minutes, and low-cost transfers that may take up to three days to process.

The transfer process is designed to be user-friendly and straightforward, making TransferGo a convenient choice for individuals seeking efficient and reliable 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

OFX is a prominent global financial institution that specializes in international money transfer services for individuals and businesses. Originally founded in Australia in 1988, the company has expanded its operations worldwide and now serves customers in Canada, the United States, New Zealand, and the United Kingdom.

OFX is known for offering competitive exchange rates, low transfer fees, and personalized services tailored to meet the specific needs of each customer. They prioritize security, speed, and cost-effectiveness, providing 24/7 customer support and a range of transfer options, including wire transfers, bill payments, and recurring transfers.

The services provided by OFX are particularly advantageous for individuals and businesses that need to transfer significant amounts of money overseas, such as expatriates, international students, and companies engaged in global commerce. With a strong reputation for exceptional customer service and high levels of customer satisfaction, OFX has established itself as a trusted and reliable name in the international money transfer industry.

 

 

Pros of using OFX for international money transfers:

• Low transfer fees: OFX charges a low transfer fee or even no fees for transfers above a certain amount, depending on the country of origin and destination.
• Customized Services: OFX offers customized services to meet each customer’s individual needs, including scheduled transfers, wire transfer options and bill payments.
• Customer support available 24/7: OFX offers 24/7 customer support to ensure you get help whenever you need it.
• Extensive transfer options: OFX offers a wide range of transfer options, including wire transfers, bill payments and scheduled transfers, allowing you to choose the option that best suits your needs.

Cons of transferring money using OFX:

• OFX doesn’t support all currencies, so there may be some limitations on which countries or regions you can send money to.
• Also, while OFX offers competitive exchange rates, it is possible that other companies or services may offer even better rates at certain times.
• Finally, transfer processing time can take a few business days, which can be inconvenient if you need to send money urgently.

Personal experience with OFX:

Although I haven’t had the opportunity to personally use OFX’s services, user reports are often highly positive. Based on this positive review, OFX can be considered an excellent option for those who need to send someone money.

 

 

   Bonus 3. PayPal

 

 

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

Bitcoin and other cryptocurrencies have emerged as a relatively new addition to the global financial market, experiencing rapid growth in popularity.

One significant advantage of utilizing digital currencies is their capacity to facilitate cost-effective international money transfers when compared to traditional methods. Moreover, transactions can be executed within minutes, irrespective of the recipient’s geographical location.

 

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

I recommend considering Coinbase as a reliable platform for conducting international money transfers using cryptocurrencies such as Bitcoin. As the largest cryptocurrency exchange globally, Coinbase has earned the trust of numerous users.

To begin, simply sign up for a free account on Coinbase and provide the required personal information. Next, transfer funds from your bank account to your digital wallet on the platform and proceed with purchasing the cryptocurrency of your choice. Coinbase supports popular cryptocurrencies like Bitcoin, Ethereum, and Litecoin.

Once you have obtained the cryptocurrency, you can send it to anyone worldwide who possesses a digital wallet. Simply enter their wallet address and initiate the transfer through your own digital wallet.

Upon receiving the cryptocurrency, the recipient can convert it into their local currency (such as Brazilian reais, euros, or dollars) and transfer it to their bank account using the Coinbase platform.

The platform is user-friendly, and the entire process is straightforward. Additionally, if you have an interest in cryptocurrency investments, Coinbase is an excellent choice due to its industry-leading 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….  

When it comes to international money transfers, it is essential to approach the decision with careful consideration. Taking the time to conduct thorough research and compare available options is crucial to ensure you maximize the value of your transaction. Factors such as exchange rates, transfer fees, and other relevant details can significantly impact the amount of money involved.

To simplify the process, you can select a specific amount, such as $500 USD, and test each of the mentioned options to determine which one offers the highest value in terms of the amount received. Although this may require additional time and effort, it can ultimately help you save money and secure the best possible deal in the long run.

 

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…