Let’s be honest. Sending money abroad can sometimes feel like you’re getting hit with fees from every angle.
If you’re looking into ways to transfer money to a different country, there are a lot of options. From bank wires to apps and third-party services, each one has its own charges.
The good news is, there are a few smart ways to save these costs that most people overlook.
Here are 5 tips that can actually make a difference in how much you send and how much the recipient receives.
1. Keep an Eye on the Exchange Rate
Most people only focus on the fees, but the exchange rate can cost you way more in the long run.
Some providers lure you in with zero or low fees and then quietly give you a terrible exchange rate. Over time, that small percentage difference adds up, especially if you send money regularly.
Look for services that offer mid-market rates or the real rates that you see on Google with transparent fees. Some even let you lock in a rate ahead of time if you know you’ll be sending money later.
2. Compare Platforms at Different Times of the Day
Some services change their rates throughout the day based on global currency fluctuations.
Try this:
- Pick 2 or 3 trusted money transfer services.
- Check the total cost to send the same amount in the morning.
- Then check again later at night.
3. Skip the Big Banks
Banks are the default method for sending money for a lot of people – and understandably so. They feel safe, but they are usually the most expensive option out there.
Between wire transfers, intermediary bank charges, and bad conversion rates, you could easily lose $40 to $60 per transfer.
If you’re in the US, for example, and figuring out how to transfer money to Honduras, ditch the banks and explore digital options instead.
4. Look Into Local Pickup Partners
Here’s something most people don’t know – the delivery method matters.
If your recipient doesn’t need the money deposited directly into a bank account, choosing a cash pickup location is better. It also sometimes comes with lower fees.
Some providers partner with local businesses and convenience stores where people can pick up funds in person. This is usually faster and cheaper than a traditional bank deposit.
Also, it gives your recipient a little more flexibility.
5. Avail Loyalty Perks and Referral Bonuses
A lot of platforms offer reward programs, referral bonuses, or “send X times, get one free” style deals.
Most users either forget about them or never sign up.
If you regularly send money to family, friends, or a business, these perks can be very beneficial. Even saving $5 per transaction is worth it, especially over time.
How to Choose the Best and Cheapest Way
The best method depends on:
- How much money you’re sending
- How fast it needs to arrive
- How your recipient wants to receive the money
- How often you’re sending it
The big names aren’t always the best, and the cheapest-looking option might be hiding costs in the exchange rate.
Take a few extra minutes to compare, track, and experiment. It can literally save you hundreds in the long run.
