How do I send money abroad without losing money on fees?

An international transfer has three costs: the sending fee, the exchange rate margin, and any correspondent bank charges deducted en route. The fee is the one that is advertised and usually the smallest. Comparing on the received amount collapses all three into one number, which is the only comparison that means anything.

Step by step

1. Compare on what arrives, not what it costs.Enter the same send amount at each provider and note the guaranteed received amount. That single figure captures fee, margin and everything else.
2. Check the exchange rate against the mid-market rate.Look up the mid-market rate for the pair. The gap between it and the rate you are quoted is the margin, and it is usually much larger than the fee.
3. Get the recipient details exactly right.IBAN and BIC for most of Europe, routing and account numbers for the United States, and different formats elsewhere. Check the account holder's name matches exactly.
4. Decide who pays intermediary charges.Bank transfers often offer a choice — sender pays all, shared, or recipient pays. If the recipient must receive an exact amount, pay all the charges yourself.
5. Check the provider is authorised.Use the FCA register to confirm the firm is authorised or registered in the UK. This is a two-minute check and it is the main protection against a fraudulent service.
6. Understand how your money is held.Payment institutions safeguard customer funds rather than being covered by FSCS deposit protection in the way banks are. Ask what protection applies before sending large sums.
7. Consider a rate lock for large amounts.Some providers let you fix a rate ahead of a known payment such as a property purchase. For a large sum the rate movement dwarfs every fee.
8. Send a small test payment first.For a new recipient or a new provider, send a small amount, confirm it arrives, then send the rest. It costs one fee and prevents the worst outcomes.
9. Keep the confirmation and reference.You need the transaction reference to trace a payment. Without it, tracing an international transfer is very slow.
10. Stop if anything about the request feels off.Requests to send money urgently to someone you have not met, to a different account than usual, or with a story attached are the classic pattern of a transfer scam.

Tips

• Compare the received amount at three providers for the same send amount. It takes five minutes and it is the whole comparison.
• Never let a bank convert on your behalf when a card or a provider offers you the choice — dynamic currency conversion is consistently worse.
• For anything large, send a test payment first. One extra fee is cheap against a mistyped account number.

Common mistakes

• Comparing the advertised fee — The exchange rate margin is usually several times the fee, and a zero-fee offer often has the worst rate.
• Not checking who bears intermediary charges — The recipient can end up with noticeably less than expected, which matters when the payment is for a fixed obligation such as rent or fees.

If it doesn't work

Questions people ask