There are a host of reasons why you’d need to send money internationally. You might be paying for a destination wedding, purchasing an overseas property or adding a coveted item to your collection from a dealer overseas.
But how much will it cost to send money internationally? Let’s break it down.
1. Wire transfer fees can vary greatly depending on your provider.
Whenever you send money internationally, your bank will typically charge a fixed wire transfer fee. You could pay up to $50 to transfer the money, but the fee will depend upon the bank that you’re using, as well as how much money you’re sending.
Some banks will charge a different rate depending upon the currency in which your money is sent, so you might pay a higher fee if you send the money in US dollars rather than in your recipient’s local currency. If you want your money transfer expedited, you might incur yet another additional fee. Sheesh!
If you’re using a money wiring service, some fees depend on how you’re sending the money, whether it’s from a funded account, a credit card, or a debit card. This percentage can range from 0.5% to 3.9%. And that’s not the end of it.
2. Watch out for the margin on the exchange rate.
In addition to the wire transfer fee, a margin on the daily exchange rate is also tacked on to most foreign transfers. This rate is typically around 5% at most major banks, so if you’re sending $10,000, you may have to pay up to $500. Yikes. At OFX, we know you could buy a lot with $500, so we keep our rates substantially lower than other money transfer providers.
3. Your recipient may also be charged to receive foreign payments.
On top of all the other costs above, many banks charge their customers between $15 and $30 to receive international wires. At OFX, we use our global network of local bank accounts to transfer your money in an effort to reduce these fees. It works like this: you pay into our domestic account in your home country, and we pay out from our domestic account in your recipient’s country. Sometimes, this means your recipient may be charged less to receive the money from us.
So how much does it cost to send money internationally?
The answer is, it depends on the company you use. Rather than using a bank and paying excessive fees to send your money internationally, make the smart move to OFX. With OFX you are able to book a transfer 24/7. Plus, OFX delivers a much more competitive exchange rate, so you can keep more of your money. With options like OFX, there’s no need to rely on your bank anymore to send money, so now the only question is: what are you going to do with all that extra cash?