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7 Affordable Ways To Transfer Money Internationally

International payments are the new norms of modern society. We sometimes need to transfer money abroad to our family, friends, shopping, or any other business. All thanks to an abundance of apps, services, and financial technologies explicitly related to foreign payments. If you had tried every transfer method, you know it is not as straightforward as it seems.

7 Affordable Ways To Transfer Money Internationally
7 Affordable Ways To Transfer Money Internationally
Many factors involved while transferring money, such as exchange rates, service fees, and the time required reaching money to the recipient. These factors vary for different services, for example, using your bank to transfer money is the most convenient and easy way. The major drawback is it can be quite expensive. Luckily there are great alternatives where you can save money; you have to choose the right options according to your needs. Let us break down for you, 7 affordable ways to transfer money internationally.

1. Peer-To-Peer Transfer

Peer-to-peer (P2P) platforms are the latest revolution in the field of money transfer services. These P2P services allow users to safely exchange currency – cutting banks and fees out of the exchange. P2P networks work on digital exchanges of currencies rather than physical ones. The individuals can trade between themselves without involving middlemen like banks, forex services, and other financial institutions.

The advantage is that users can get a better rate on their exchange without incurring any extra charges. You have to register on a P2P exchange service platform to make deposits. Depending upon websites, you can accept the current exchange rate or bid on others according to your choice. The site then automatically matches you with sellers and displays a change in the ownership of the funds. And within a day or two, it remits the funds through domestic transfers.

You sell whatever currency amount you have, making an exchange. P2P services are beneficial for larger funds transfer – i.e., more than $500 but less than $7000 USD. Transactions are particularly convenient with common currencies like dollars, pounds, euros, and yen. Currently, Transferwise and CurrencyFair are the biggest P2P companies for international money transfer.

2. Paypal

PayPal is famous and known for a long time as a platform for international money transfer. Using PayPal, you can transfer money in 20 different currencies to almost 190 countries. The interface of PayPal is easy and straightforward to understand, making it a popular choice. To transfer money, all you need is the recipient’s phone number or email address.

7 Affordable Ways To Transfer Money Internationally
7 Affordable Ways To Transfer Money Internationally
PayPal allows you to preview the conversion and exchange rate before you transact any funds and has a fixed fee for the service - making it a transparent and precise method to transfer your money abroad. It works best for amounts under $500 to $1000 USD and is not suitable for sending large sums (due to hefty fixed fees).

3. Money Transfer Operators

Money transfer operators are financial companies (usually not banks) engaged in cross-border funds transfer either through their internal systems or through other cross-border banks. These companies specialize in moving money quickly for their clients from various locations and even between countries. They have ground locations based on multiple locations worldwide, which allows you to transfer money swiftly.

Money transfer operators are ideal if you want to send money as soon as possible in emergencies. The services are both online and offline, ideal in conditions if recipients or senders do not have an internet connection. These operators allow digital and physical transfers, allowing both parties to deposit or withdraw hard cash. Western Union and MoneyGram are the two most popular money transfer operators.

4. Bank Wire Transfers

Bank wire transfers are an electronic transfer of funds from one bank to another bank where the sender and recipient are required to have a bank account. These transfers can be done online or in person. To transfer a wire, you need to do formalities of form filling and need specific details of the recipient like full name and branch, transit, or account numbers.

7 Affordable Ways To Transfer Money Internationally
7 Affordable Ways To Transfer Money Internationally
Wire transfers are ideal for sending large sums and need the funds to go directly into the recipient’s bank account. They are beneficial to send funds for businesses or for conducting businesses. Since it is bank to bank wire transfer, they are generally one of the most secure ways of transferring money. Although the conversions, exchange, and bank service rates are very high. Usually, the rates of the service are $20 to $40 USD with high exchange rates.

5. Money Orders

In today’s technology, driven world money orders might be an old age method of money transfer. Nevertheless, they are almost guaranteed and non-fraudulent ways. They are best suited for business transactions, where digital services are limited.

A money order is a set amount of money paid in advance at a bank or post office in the name of the recipient person or business. Money orders are a much-trusted method to transfer money than a cheque.  The service charges vary from $10 to $ 50 USD.

6. Bank To Bank Transfer

Some of the major banks offer free money transfer on international locations – with conditions such as recipients having an account with the same branch in two different countries or sender, and recipients having the same bank. This method works best when both accounts are in the same currency, as it saves conversion and exchange rates.

7. Non-Peer-To-Peer Transfers

OFX, TorFX, and WorldFirst are non-bank institutions specifically related to international payments and foreign exchange. They are the cheapest and best ways to send money internationally for any amounts exceeding $10,000 USD. These services are completely safe and regulated.  They provide fair exchange rates and cheap service rates for any larger amounts and generally not suited for small funds transfers.

7 Affordable Ways To Transfer Money Internationally
7 Affordable Ways To Transfer Money Internationally
Bottom-Line: The affordable ways to send money abroad depend on how you want the money transferred, how much the time you have to send money, and how much you are trying to save. Considering all the factors, P2P services like Transferwise and CurrencyFair are the best choice for affordable international payments.  Do your research regarding what service is best and affordable for you. Learn about risks and make sure you are not giving away more than you should!

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