Sending money abroad used to mean expensive bank wires and terrible exchange rates. In 2026, you have better options — fintech services that can save you 80-90% compared to traditional banks. But which one is actually cheapest? It depends on where you're sending, how much, and how fast you need it there.
Let me break down the best options for different scenarios, based on actual costs.
Key Principle: Total cost = Transfer fee + Exchange rate markup. Many services advertise low fees but make money on poor exchange rates. Always calculate total cost: what you send minus what recipient receives, converted back to your currency.
Quick Cost Comparison (Sending $1,000)
| Provider | Fee | Rate Markup | Recipient Gets* | Total Cost |
|---|---|---|---|---|
| Wise | ~$7 | ~0.5% | €908 | ~$12 |
| Remitly | $0-5 | ~1% | €900 | ~$15 |
| OFX | $0 | ~0.8% | €903 | ~$13 |
| PayPal | $5 | ~3.5% | €872 | ~$45 |
| Western Union | $8 | ~3% | €880 | ~$38 |
| Bank Wire | $35 | ~3% | €868 | ~$70 |
*Approximate EUR received, assuming mid-market rate of €0.92/$. Actual amounts vary by date and corridor.
The Best Providers, Reviewed
Wise (TransferWise)
Wise has become the gold standard for international transfers. They show the real mid-market exchange rate and charge a small, transparent fee — typically 0.3-0.7% depending on the currency pair.
- Pros: Best exchange rates, transparent pricing, fast transfers, multi-currency accounts
- Cons: Fees slightly higher than some competitors for small amounts, not always cheapest for specific corridors
- Best for: Most international transfers, especially USD/EUR/GBP conversions
- Speed: Usually 1-2 business days
Remitly
Remitly specializes in transfers to developing countries, especially for remittances. They often have promotional rates for specific corridors and offer multiple delivery options including mobile money and cash pickup.
- Pros: Great rates to India, Philippines, Mexico; cash pickup options; fast transfers
- Cons: Exchange rates vary by delivery speed; limited for business transfers
- Best for: Regular remittances to family in specific countries
- Speed: Minutes to 3 days depending on delivery method
OFX
OFX (formerly OzForex) specializes in larger transfers ($10,000+) where their zero-fee model and competitive rates shine. They also offer forward contracts and limit orders for timing the market.
- Pros: No transfer fees, good rates for large amounts, forward contracts available
- Cons: Minimum transfer amounts ($1,000+), less competitive for small transfers
- Best for: Property purchases, large business payments, transfers over $10,000
- Speed: 1-4 business days
WorldRemit
WorldRemit covers similar ground to Remitly, with strong coverage in Africa and Asia. They offer mobile money delivery in many countries where banking infrastructure is limited.
- Pros: Wide country coverage, mobile money options, airtime top-ups
- Cons: Rates not always competitive, fees vary significantly by corridor
- Best for: Transfers to Africa, mobile money recipients
- Speed: Minutes to 3 days
PayPal / Xoom
PayPal is ubiquitous but expensive. Their exchange rate markups of 3-4% make them one of the priciest options. Xoom (owned by PayPal) is marginally better for some corridors but still not competitive.
- Pros: Widely accepted, convenient if you already use PayPal
- Cons: Expensive exchange rates, high fees for some transfers
- Best for: When the recipient only accepts PayPal
- Speed: Instant to 3 days
Bank Wire Transfers
Traditional bank wires are almost always the most expensive option. High fees ($25-50), poor exchange rates (2-5% markup), potential intermediary bank fees, and slow processing make them obsolete for most personal transfers.
- Pros: Can send very large amounts, established trust
- Cons: High fees, terrible exchange rates, slow, opaque pricing
- Best for: When the recipient bank requires SWIFT transfer, very large amounts where trust matters
- Speed: 3-5 business days
Best Provider by Destination
Sending to India
India is one of the largest remittance markets. Best options:
- Remitly: Often has the best rates for INR, fast bank deposits
- Wise: Consistent and transparent, good for larger amounts
- Instarem: Competitive for INR corridor
Sending to Philippines
- Remitly: Excellent PHP rates, multiple delivery options including GCash
- WorldRemit: Good mobile money options
- Wise: Reliable if sending to bank account
Sending to Mexico
- Remitly: Strong MXN rates, cash pickup at OXXO stores
- Wise: Good for bank deposits
- Xoom: Decent for cash pickup
Sending to Europe (EUR/GBP)
- Wise: Best rates for major European currencies
- OFX: Good for larger amounts
- Revolut: If both parties have accounts
Tips to Save Even More
1. Compare at the Moment of Transfer
Rates change constantly. Check 2-3 providers when you're ready to send, not based on old information. A provider that was cheapest last month might not be this month.
2. Consider Delivery Method
Bank deposit is usually cheapest. Cash pickup and instant delivery often cost more. If speed isn't critical, choose the slower, cheaper option.
3. Avoid Weekends for Large Transfers
Some providers add weekend surcharges or hold transfers until Monday anyway. For large amounts, transferring during business hours on weekdays can mean slightly better rates.
4. Send Larger Amounts Less Frequently
If you regularly send $200/month, consider sending $600 quarterly instead. Percentage-based fees stay the same, but fixed fees become proportionally smaller.
5. Use Rate Alerts
If you're not in a rush, set rate alerts for favorable exchange rates. Services like Wise and XE will notify you when rates hit your target.
Frequently Asked Questions
What's the cheapest way to send money abroad?
For most transfers, Wise (TransferWise) offers the best combination of low fees and real exchange rates. For specific corridors like US to India or UK to Philippines, specialized services like Remitly or WorldRemit sometimes beat Wise. Always compare total cost (fee + exchange rate) rather than just the advertised fee.
Why are bank wire transfers so expensive?
Banks charge $25-50 wire fees, add 2-5% markup on exchange rates, and may have intermediary bank fees. They're not primarily in the business of international transfers and don't compete on price. For most people, banks are the worst option for international transfers.
How long do international transfers take?
Speed varies by provider and corridor. Wise: 1-2 business days typically. Remitly: minutes to 3 days depending on delivery method. Bank wires: 3-5 business days. Instant transfers often cost more or have limits. For non-urgent transfers, slower options usually offer better rates.
Is PayPal good for international transfers?
PayPal is convenient but expensive. They charge fees plus a 3-4% markup on exchange rates. For sending $1,000, PayPal might cost $40-50 in total fees versus $5-10 with Wise. Use PayPal only if the recipient insists and can't accept alternatives.
The Bottom Line
The cheapest option depends on where you're sending, how much, and how fast you need it. But here's a simple rule of thumb:
- Default choice: Wise for most transfers
- Remittances to family: Remitly or WorldRemit for specific corridors
- Large amounts ($10,000+): OFX or currency brokers
- Avoid: Banks and PayPal unless there's no alternative
A few minutes of comparison can save you tens or hundreds of dollars. Make it a habit, especially for transfers over $500.