5 Ways to Save on International Money Transfers

Sending money abroad can be expensive if you're not careful. Hidden fees and poor exchange rates can significantly reduce the amount your recipient receives. Here are 5 proven strategies to keep more of your money when making international transfers.

1. Compare Rates Before You Transfer

Exchange rates and fees vary significantly between providers. Using a comparison tool like Remit Hawk allows you to see real-time rates from multiple services side-by-side. You might be surprised at how much you can save by simply choosing a different provider.

For example, when sending $1,000 USD to EUR, the difference between the best and worst provider could be as much as €30-€50 based on our recent comparisons.

2. Understand the Total Cost

Many services advertise "zero fees" but make up for it with poor exchange rates. Always look at the total amount your recipient will get, not just the advertised fee structure.

The real cost of a transfer is the combination of:

• Upfront fees
• Exchange rate margin (the difference between the mid-market rate and what you're offered)
• Receiving fees (if any)

3. Time Your Transfers Wisely

Exchange rates fluctuate throughout the day based on global market conditions. While it's impossible to perfectly time the market, you can avoid transferring money during periods of high volatility when spreads tend to be wider.

Consider setting up rate alerts if your provider offers them, so you can transfer when rates move in your favor.

4. Choose the Right Transfer Method

How you send and receive money affects the cost:

• Bank transfers are often cheaper for large amounts
• Debit card payments typically have lower fees than credit cards
• Digital wallets can sometimes offer better rates for specific corridors

Also consider the delivery time - if you're not in a hurry, opting for a slower transfer method can sometimes save you money.

5. Leverage First-Time User Promotions

Many money transfer services offer special rates or fee waivers for first-time users. While you shouldn't choose a provider solely based on a promotion, these offers can provide significant savings for your initial transfer.

Just be sure to check what the regular rates are after the promotion ends, as you might want to switch providers for subsequent transfers.