Due to the numerous apps and online services available today, transferring money to family, friends, or even business has become very easy. However, the costs and time it takes for the funds to reach its intended recipient depend on the type of service you use and thus, can vary greatly.
To help you make an informed decision, the following are some of the best ways you can use to send money abroad:
1. Online payment services
One of the most convenient options available, online payment services like PayPal allows you to transfer or send money to another country from the comfort of your own home on a computer in only a few minutes. These money transfer services are relatively easy to use and don’t have any extra or hidden fees aside from the initial fees and the exchange rate.
- Easy and quick
- Relatively low charges and fees, especially for small transfers
- The money will only be received if the recipient has a PayPal account as well.
- The amount you are allowed to transfer might be restricted.
2. Money Transfer operators
Money transfer services specialize in moving and transferring money from one location to another, even between different countries. Companies like Western Union and MoneyGram have ground locations and are the ideal option if you want to transfer money internationally quickly.
These companies offer both online services and at street locations through numerous different office branches around the world. Thus, these services can be used to perform both online and offline money transfers.
- Flexible and secure delivery options (bank account transfer and in-store pickup)
- Relatively low fees
- Small exchange rate markup
- Slow delivery (usually takes four to five days)
3. Your bank
Most banks offer money wire services, but they’re usually more costly than digital services focused mainly on money transfers. Banks usually charge a comparatively higher transaction fee, and there’s always an exchange rate markup. Banks also typically only transfer funds from an account held with the bank to another bank account. Nevertheless, it’s still an ideal way to send or transfer significant amounts of money abroad.
- Reliable and secure
- Large sums of money can be easily transferred
- Comparatively higher fees with exchange rate markups
- Transfers can take a few days
4. Peer-to-peer currency exchange markets
One of the most interesting ways to send and transfer money, peer-to-peer currency exchange markets offer the best transfer rates when transferring funds to another country.
Companies like TransferWise work by allowing users to set their own currency exchange rates, and then match the user with a rate they seek or give a default rate (generally between 0 and .50%). As a result, banking rates are avoided, and significant amounts of money can be transferred with relatively low fees.
To put it simply, you pay a fee for the transfer and the funds are directly sent to the person’s bank account within a few days.
- Easy-to-use mobile and online platforms
- Straightforward pricing
- Transfers are not immediate
- The number of funds you can transfer are restricted