What is the cheapest way to send money internationally?

In most cases, Wise (formerly TransferWise) offers the lowest overall cost for international transfers. It uses the mid-market exchange rate and charges a small transparent fee, typically 0.3% to 1.5% depending on the corridor. Other low-cost options include OFX and Remitly for specific regions.

How long does an international money transfer take?

Transfer times vary by provider and destination. Wise transfers typically arrive in 1-2 business days. Bank wire transfers take 3-5 business days. PayPal can be instant if both parties have accounts, but withdrawing to a bank adds 1-3 days. Some services like Remitly offer instant delivery to mobile wallets in certain countries.

Are bank wire transfers more expensive than online services?

Yes, significantly. Banks typically charge $25-$50 per outgoing international wire, plus they mark up the exchange rate by 2-5%. A $1,000 transfer through a bank could cost $50-$80 total, while the same transfer through Wise might cost $5-$15.

Is PayPal good for sending money internationally?

PayPal is convenient but often expensive for international transfers. It charges a fee of around 5% of the transaction amount and uses its own exchange rate with a markup of 3-4%. For small, occasional transfers where convenience matters most, it works fine. For larger or regular transfers, dedicated services like Wise are much cheaper.

Do I need to pay taxes on international money transfers?

The transfer itself is not taxed, but large transfers may trigger reporting requirements. In the US, transfers over $10,000 must be reported by the financial institution. If you are sending money as a gift, different gift tax rules apply depending on the amount and your country of residence. Consult a tax professional for your specific situation.

How to Send Money Internationally: Cheapest Options Compared in 2026

Why International Transfer Costs Vary So Much

Sending money across borders should be straightforward, but the reality is that costs can vary wildly depending on which service you choose. A $1,000 transfer to Europe might cost you $5 through one provider and $80 through another. The difference comes down to two things: the fee they charge you upfront and the exchange rate markup they hide in the conversion.

Understanding both of these components is essential before choosing a transfer method. The advertised fee is only half the story.

The Hidden Cost: Exchange Rate Markups

Every time you convert currency, someone sets the exchange rate. The mid-market rate (also called the interbank rate) is the real rate that banks trade currencies at between themselves. You can check this rate anytime using a tool like our currency converter on Convertz.app.

Most transfer services do not give you the mid-market rate. Instead, they add a markup of anywhere from 0.5% to 5% on top. On a $5,000 transfer, a 3% markup means you lose $150 before the transaction fee is even applied.

Comparing the Major Options

1. Wise (formerly TransferWise)

Wise has built its reputation on transparency. It uses the mid-market exchange rate with no markup and charges a small, clearly displayed fee.

Fees: Typically 0.3% to 1.5% depending on the currency pair

Exchange rate: Mid-market rate (no markup)

Speed: 1-2 business days for most transfers

Transfer limit: Up to $1,000,000 per transfer

Best for: Regular international transfers, freelancers, and expats

Total cost example: Sending $1,000 USD to EUR costs approximately $4-$7 in total fees.

2. PayPal International Transfers

PayPal is widely available and easy to use, but its international transfer costs are among the highest.

Fees: Around 5% of the transaction amount for cross-border personal payments

Exchange rate: Marked up 3-4% above mid-market

Speed: Instant to PayPal balance; 1-3 days to withdraw to bank

Best for: Small, one-off payments when both parties already use PayPal

Total cost example: Sending $1,000 USD to EUR costs approximately $50-$80 when you factor in both the fee and rate markup.

3. Bank Wire Transfers

Traditional bank wires remain the default for many people, but they are often the most expensive option.

Fees: $25-$50 outgoing fee, plus the recipient bank may charge $10-$25

Exchange rate: Marked up 2-5% above mid-market

Speed: 3-5 business days

Best for: Very large transfers where your bank offers preferential rates

Total cost example: Sending $1,000 USD to EUR costs approximately $55-$90 total.

4. Remitly

Remitly specialises in remittances to developing countries and offers competitive rates for specific corridors.

Fees: $0-$5 depending on transfer method and speed

Exchange rate: Small markup, varies by corridor

Speed: Minutes to hours for mobile wallet delivery; 1-3 days for bank deposit

Best for: Sending money to family in Asia, Africa, or Latin America

5. OFX

OFX is designed for larger transfers and business payments. There are no fixed fees, but they build their margin into the exchange rate.

Fees: No transfer fee

Exchange rate: 0.5-1.5% markup on mid-market rate

Speed: 1-3 business days

Minimum transfer: $1,000

Best for: Large one-off transfers like property purchases or business payments

6. Western Union

Western Union has the largest physical network globally but charges premium prices for the convenience.

Fees: $5-$50 depending on method and destination

Exchange rate: 2-5% markup

Speed: Minutes for cash pickup; 1-5 days for bank transfers

Best for: Sending cash to locations without reliable banking infrastructure

Cost Comparison Table

Here is what it costs to send $1,000 USD to Europe (approximate):

Provider	Fee	Rate Markup	Total Cost	Recipient Gets
Wise	~$6	None	~$6	~$994 equivalent
OFX	$0	~1%	~$10	~$990 equivalent
Remitly	~$4	~1.5%	~$19	~$981 equivalent
Western Union	~$10	~3%	~$40	~$960 equivalent
PayPal	~$50	~3.5%	~$85	~$915 equivalent
Bank Wire	~$40	~3%	~$70	~$930 equivalent

Note: Rates and fees fluctuate. Always check the live rate using a currency converter before committing to a transfer.

Tips to Save Money on International Transfers

Always compare the total cost including both the fee and the exchange rate markup. Use Convertz.app to check the mid-market rate and see how much markup your provider is adding.

Avoid transferring on weekends if possible. Some providers apply wider spreads when forex markets are closed.

Send larger amounts less frequently rather than many small transfers. Fixed fees hurt more on small amounts.

Set up rate alerts. If you have a non-urgent transfer, watch for favourable exchange rate movements before sending.

Use a multi-currency account if you regularly deal with foreign currencies. Wise and Revolut both offer accounts that let you hold and convert multiple currencies.

Check for promotional offers. Many services offer fee-free first transfers or referral bonuses.

When Speed Matters More Than Cost

Sometimes you need money to arrive instantly. In those cases, PayPal (if the recipient has an account) or Remitly (for supported corridors) offer the fastest delivery. Western Union cash pickups are also available within minutes in most countries.

For urgent transfers, the extra cost may be worth it. For regular or planned transfers, taking an extra day to use a cheaper service can save significant money over time.

The Bottom Line

The cheapest way to send money internationally in 2026 is almost always a dedicated transfer service like Wise, rather than your bank or PayPal. The difference between the cheapest and most expensive option can easily be $50-$80 on a single $1,000 transfer.

Before any international transfer, take 30 seconds to check the mid-market exchange rate on our currency converter. That gives you a baseline to evaluate whether the rate your provider is offering is fair.

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Fees and exchange rates cited are approximate and subject to change. Always verify current rates and fees directly with the transfer provider before sending money.

Why International Transfer Costs Vary So Much

Understanding both of these components is essential before choosing a transfer method. The advertised fee is only half the story.

The Hidden Cost: Exchange Rate Markups