5 Best Ways to Send Money Overseas

5 Best Ways to Send Money Overseas

Sending money overseas has always been a matter of concern. There could be a lot of confusion involved in figuring out the best methods and means to send money abroad. This article will aim to help bring clarity to this exact issue.

5 Best Ways to Send Money Overseas

1. Remitly

Remitly is one of the best remittance services to send money overseas. The platform allows you to send up to $30k in a single transfer. Quite predictably, Remitly ensures fast deposits and provides an on-time delivery guarantee. What’s more, the platform doesn’t charge any fees when you transfer more than $1,000 at once.

Coverage

Remitly allows you to send money to 48+ countries including India, Costa Rica, Indonesia, Bulgaria, Philippines, and others.

Cost

Remitly doesn’t charge any fee when you send more than $1,000.

Speed

The platform offers two-speed modes—Express and Economy. Express transfers are typically processed within four banking hours. On the other hand, Economy transfers are a bit slower and could take 3-5 business days.

Transfer limits

You can send up to $30,000 in a single transfer through Remitly.

2. TransferWise

TransferWise is another great way to transfer money abroad. Providing a top-notch web experience, this platform makes use of a variety of payment options and even has a same-day delivery option.

This platform offers the best exchange rate. The sender can fund the transfer through a range of methods such as a credit card or bank account, but the recipient is required to have a bank account.

Coverage

The platform allows you to send money to more than 70 countries from the U.S.

Cost

TransferWise is one of the cheapest options available to send money overseas. Providing the best exchange rates and charging reasonable upfront fees, TransferWise is highly cost-effective.

Speed

Although the platform provides you with same-day delivery, that is not often the case for bank account transfers. If the transfer is done through credit or debit cards, it can be processed within minutes. On the other hand, it could take around three to four days, depending on the country of the recipient, if the transfer is done through a bank account.

Transfer limits

You can transfer up to $1 million per transfer using TransferWise when paying through wire transfer. The other methods to pay include Apply Pay, debit card, direct debit, credit card, etc.

3. OFX

OFX is one of the leading online money transfer services. The platform is highly popular for being cost-effective. Based on a survey from NerdWallet, it is one of the cheapest international money transfer providers. Furthermore, the platform does not put a limit on the maximum transfer amount. Thus, you can transfer as much as you need.

Coverage

You can send money to more than 80 countries using OFX.

Cost

OFX is another cost-effective service to send money overseas. The platform charges no fees regardless of the amount you intend to send. On another note, the exchange rate markups generally tend to be less than 1%. Thus, it provides you with favorable rates as well.

Speed

The only drawback of OFX is that it doesn’t provide a same-day delivery option. The platform receives your money within one to two business days and takes another one to two business days to deliver it to the recipient.

Transfer limits

Although there are no restrictions on the maximum amount you can send per transfer, the minimum amount is set to $1,000.

4. Xoom

Xoom is an online money transfer service owned by PayPal. The platform was established in 2001 and helps you send money to more than 70 countries from the U.S. within minutes. The platform provides a range of options through which money can be sent and received. You can deposit directly into bank accounts or pick up cash from various locations depending on your country.

Coverage

The service allows you to send money to more than 70 countries from the U.S.

Cost

It is important to note that Xoom is one of the costliest services we have on this list. Although the upfront fees are still reasonable (which is under $5 for most transactions processed through a bank account), the exchange rate markups can be more than 3%.

Speed

One of the perks of Xoom is the speed it provides. Most transfers are processed within minutes, irrespective of the payment method used.

Transfer limits

Xoom provides cash pickup options at supermarkets and other similar locations in some countries. Although the sending limits vary, most transfers are capped at $25,000.

5. MoneyGram

Consisting of a huge network that includes 350,000 agent locations and kiosks in more than 200 countries, MoneyGram is the second-largest money transfer provider in the world. The platform provides an array of funding and receiving options. Add to that, the transfers are really quick.

Coverage

MoneyGram allows you to send money to more than 200 countries with more than 350,000 locations.

Cost

Although MoneyGram is one of the largest money transfer services in the world, it comes with costs that are mostly on the higher end. The upfront fee for transfers is low, but the exchange rate markups can be expensive.

Speed

Irrespective of your payment choice, MoneyGram could facilitate delivery the same day. However, it ultimately depends on your chosen payment method.

Transfer limits

MoneyGram allows you to send $6,000 per month. One of the perks of this platform is the fact that people can pay in cash at its physical locations and the recipient can pick up the funds from a physical MoneyGram location. Alternatively, you can also choose to pay via debit cards, bank accounts, and credit cards.

Tips for Sending Money Overseas

We understand that you might want to send money to your friends and family abroad. However, it is essential to keep certain things in mind before sending money overseas:

1. Use an Online Transfer Rather Than a Bank

Although you can use a bank to transfer funds internationally, they charge you a fixed fee and also add a margin on the interbank rate which could be as high as 5%. Essentially, this means you could end up paying hefty fees on your money transfer.

2. Check the Exchange Rate Before Sending

You must agree that exchange rates matter a lot when it comes to sending money. As the rates keep on fluctuating, it is important to try timing your transaction correctly.

3. Protect Yourself Against Currency Fluctuations

It is essential to manage the associated currency risks properly to prevent yourself from any fluctuations. There are various contracts, like forward contracts, where you can lock-in the exchange rate today for up to a year in the future.

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Conclusion

We hope this article has helped you figure out a way to send money overseas effortlessly. It is essential to play it safe and choose reliable methods to send money internationally.

What are your views on this? Let us know in the comments below.

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