Sending Money Internationally- Banks vs Online Service Providers

5 minutes read

Table of contents

  1. Fees
  2. Time
  3. Exchange Rates
  4. Bottom line

When you are looking to send money internationally there are many options that promise to give you the best deal. Evaluate these different aspects when choosing the best option for you:

Fees

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Unlike banks, you might find fee-free online providers for remittances. If you transfer money overseas with a bank, the commission that would be applied to this transaction would range from US$20 to US$60. Also, banks use high markups that often elevate the price and make their offers uncompetitive.

Time

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Banks rely on SWIFT transfers that take between 1 to 4 business days. On the other hand, online providers such as Wise or Worldremit offer instant transfers that take one day or even just a couple of hours.

Exchange Rates

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Banks usually have the least favorable exchange rates, generally 4% to 6% above the average market rate. When sending large amounts of money this rate is important because every penny you send will devalue when converting from one currency to another.

Bottom line

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Both banks and online services offer secure money transactions. Although, when it comes to speed and getting your money’s worth, online remittance providers offer more competitive deals than banks.

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Daniel Quiroz

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