How to Save Money on International Transfers

James Carter Finance Expert November 1, 2023 5 min read

Sending money across borders doesn’t have to break the bank. With the right approach, you can minimize fees and maximize the value of your transfers, whether you’re paying overseas suppliers or supporting family abroad. Here’s how to save money in 2023: 1. **Shop Around for Providers** Banks often charge steep fees—sometimes $20-$50 per transfer—and offer exchange rates with a 3-5% markup. Specialized services like Wise, TransferWise, or CurrencyFair often provide mid-market rates and lower fees, saving you significant amounts. For example, transferring $5,000 USD to GBP could cost $150 less with a fintech provider than a traditional bank. 2. **Beware of Hidden Costs** Some platforms advertise ‘zero fees’ but embed costs in the exchange rate. Always compare the rate offered to the mid-market rate (check Google or XE.com) to see the real cost. Transparency is key—opt for providers that show all fees upfront. 3. **Time Your Transfers Wisely** Rates fluctuate based on economic events. In 2023, watch for Federal Reserve or Bank of England announcements, as these can shift USD/GBP rates by 1-2% in a day. Tools like rate alerts can notify you when your target rate is hit. 4. **Use Forward Contracts** For large sums, lock in today’s rate for a future transfer. This shields you from sudden drops—like if the GBP weakens after a UK economic report. 5. **Avoid Small, Frequent Transfers** Each transfer incurs fees. Batch your payments into one larger transaction to cut costs. By following these tips, you could save hundreds annually. Test providers with small amounts first, and always double-check live rates before sending.