Cheapest Way to Send Money Overseas from the UK

The fastest and cheapest way to send money overseas is usually through money transfer providers, who often provide much better rates than traditional banks. 

Still, not every provider offers the same deals. 

To help you narrow down the search, we compiled a list of the cheapest money transfer providers in the UK.

Let’s dive in.

Top 10 Cheapest Money Transfer Providers

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The Cheapest Way to Send Money Overseas: A Buyer’s Guide

With the number of money transfer providers available today, it can be a time-consuming task to find one that’s right for you. 

Whether a certain money transfer provider is the cheapest way to transfer money internationally for you, depends entirely on your situation. Some providers offer better rates for one-off transfers, while others can work out to be cheaper for regular payments in the long run. 

To find the cheapest way to send money abroad from the UK in the sea of money transfer providers and services, here’s what you should look for:

Transfer limits and speed

Before you decide on a money transfer service, make sure to check how much money you can transfer from one account to another in one go and whether there’s a daily, monthly, or annual limit. You should also consider the speed of the transfer in case of emergencies. 

If you need to transfer money immediately, take a look at providers such as Wise, which offers instant transfers.

Avoid using credit cards for funding

Using a credit card might seem like a more practical way to make international money transfers, but it’s rarely cheap. 

Depending on whether your transaction is processed as a purchase or cash advance, you may face fees, higher interest rates, and higher exchange rates. If you’re looking for a cheap way to send money internationally, a better alternative is a debit card. Transfer providers such as MoneyGram allow you to deposit funds within a few hours by debit card.

In most cases, the cheapest way to transfer money abroad is via a bank transfer. It’s also the cheapest way to receive money from abroad.

Select a fully licensed money transfer service

Companies that are regulated and authorized by the Financial Conduct Authority, or other relevant bodies, have to follow certain rules and regulations to protect their clients’ data and transactions. Transfer services like Wise, Remitly, Western Union are fully licensed and authorized by the FCA.

If you want to check if a company is FCA regulated, you can visit the Financial Services Register and run the company’s name against the FCA’s database.

Large money transfers

Larger transfers, most of the time, come with lower fees (and sometimes no fees at all) than smaller transactions. So if possible, opt for a larger one instead of several smaller ones to avoid paying double. For instance, XE Money Transfer doesn’t charge fees for sums larger than £250.

Transfer cost

To find the cheapest way to transfer money overseas for you, you’ll have to do your research and compare the costs of different companies. 

Most charge fees and commissions based on the amount and whether you’re funding the transfer from a credit card, debit, card, or a funding account, however there are platforms that impose a flat fee on all transfers.  

Exchange rate

An exchange rate is the value of one currency compared to another and is determined by the demand and supply of currencies at any point in time. 

Since exchange rates fluctuate regularly (and sometimes, dramatically,) to find the cheapest international money transfer, it’s best to look for a provider that operates at a low exchange margin, like OFX, which can help you save on money. Mid-market exchange rates are typically the best rates for sending money abroad and Wise offers excellent mid-market exchange rates for your transferring needs.

Required information

To save yourself time and hassle, you should prepare everything you’ll need to complete the transfer in advance. 

Here’s what you’ll need:

• The name and address of the recipient.
•  The recipient’s bank account details (including bank name and address).
• The SWIFT code of the bank, also known as BIC.
• Recipient’s account number or IBAN.

Bottom Line

If you’re looking to find cheap ways to transfer money internationally, then your best bet is a money transfer provider. They have competitive exchange rates and low-cost fees, compared to traditional and challenger banks. However, make sure to scout all your options as some international money providers might have hidden fees.