International Money Transfer Comparison

Whether you’re an expat sending funds to family back home or you’re an investor handling a mortgage on an overseas property, chances are you'll need to make international money transfers every month or fortnight. But instead of going through the hassle of completing a new transaction every single time, it’s usually far more convenient to sign up for a regular payment plan with your IMT provider. This plan may work for people who: 

• Transfer the same amount each time 

• Want to secure an exchange rate for future transfers

• Want peace of mind that their payments will stay the same for each transfer

Speak to your provider to see if they allow for regular scheduled transfers, and make sure you understand all the costs involved before hopping on board. 

Absolutely! Opting to tie up with a service provider can save you both time and money. For instance, some companies may offer to lower or completely waive their commission if you set up a regular account with them, especially if you’re transferring above a specific amount. You may also be able to negotiate a transfer limit and lock in an exchange rate if your transfers stay fixed, helping to protect your money from any periodic negative fluctuation in rates.

If you’re planning on moving overseas permanently, then you may have to do things differently to a regular IMT transfer, as you’ll need to have access to the money the second you land. 

When it comes to finding the best way to transfer large sums of money for your big move, the decision is up to you and what suits your situation the most. Here are your three options: 

• Spot rate contract: This is when you organise a transfer and lock in the current exchange rate then and there. Exchange rates fluctuate all the time, and once you’ve locked in yours, you’ll need to transfer the money to the provider within 24 hours. Bear in mind that even though these transactions would occur as soon as your provider has received your funds, they can take a bit of time to reach your chosen destination. For major currencies like USD, EUR or GBP, it could be 1-3 working days before the money enters your foreign bank account, and it may be even longer for less common currencies. So remember to factor in those timeframes to minimise delays.

• Forward contract: This involves fixing the exchange rate that will apply to a future transfer, three months up to two years in advance. This is a great way to safeguard yourself against potential currency fluctuations. However, the downside of a forward contract is that you could potentially miss out on even better rates down the track. 

• Limit order: This allows you to nominate an exchange rate that you would like for your future transfer. Your IMT provider then monitors the market for you and will make the transfer only when the rate you’ve requested becomes available. While this is a good option if you aren’t in a rush to transfer the funds, limit orders are usually only available for major currencies and may have larger minimum requirements for a transfer. Depending on the provider, this can be as much as $50K.

This will depend on your IMT provider, as some do not allow transfers to be processed if the recipient doesn’t have a bank account. Your next option would be to transfer money as an international money order or as an overseas bank cheque. For this to work, your provider would need to have an office in the country the money is being sent to, so the recipient can pick up the payment upon presenting their ID. Just keep in mind that this can be a more expensive option than an electronic money transfer.

While using your bank is the more convenient option, it’s not always the cheapest way to transfer money overseas. Instead, you may find that specialist FX agencies offer more value for money, as they tend to have stronger rates and fewer fees. Plus, they often give their customers access to a wider range of currencies than banks and equip you with features like forward contracts and limit orders that your bank may be unable to.

A SWIFT or BIC (Bank Identifier Code) is a unique identification code for a specific bank. These codes are used when you transfer money to an overseas bank account to help make sure your money goes to the right place. They should be pretty easy to find - you can ask the bank for the appropriate code or check on their website.

Depending on your provider, international money transfers from one bank account to another can take anywhere between 1-3 business days for major currencies, although some IMT specialists like OFX and TorFX also offer same-day transfers for frequently traded currencies like USD and GBP.

Transactions usually take a few days’ longer if you’re sending in more uncommon currencies (although they shouldn’t be any longer than a week). Either way, it’s worth confirming the timing with your provider before making a transfer. 

Generally speaking, all reputable IMT specialists should be able to facilitate IMTs in popular currencies like the USD, GBP and EUR, and many may extend their services to less frequently traded currencies or more exotic countries too. You’ll need to get in touch with your provider or find a full list of offered currencies on their website for the specifics. 

If you need a hand, our comparison table above can also help, as it gives you the option to search for providers in our database based on currency. Just scroll up and fill in the blanks, including the amount you want to move as well as your start and end currency, then click on the green ‘Go’ button to see which exchange rates are available for your transfer today. 

There are two types of limits to watch out for: one that restricts how much you can send per transfer, and the other that restricts how much you can send over a certain period of time. 

Some IMT specialists require a minimum amount for every transaction, ranging from $50 to $10,000, while many have little to no maximum limits. By contrast, with the big banks, your transfers will usually be capped at your ‘pay anyone’ limit (which may be $10,000 to $25,000 a day). For this reason, IMT specialists are often a more suitable option if you’re moving larger sums of money across borders.

Check our comparison table above for further details on each provider’s transfer limits.

Depending on the provider, transfer fees for your IMT could go anywhere from $0 to $32. However, even if your provider doesn’t directly charge any transfer fees, your transaction could still be subject to what’s known as ‘third party fees’. These are fees that your recipient’s bank may charge for processing your money transfer, and there’s not much you can do about them.

Yes, but only if your funds haven’t yet been picked up or deposited into another account. You can cancel your transfer by calling your provider or jumping online and doing it yourself. However, you may have to pay a cancellation fee.

Just bear in mind that any cancellations you request aren’t guaranteed to go through. For instance, if your money has already been processed by your receiving bank, it’s most likely too late to cancel, but you could still be hit with a cancellation fee regardless. 

Your IMT tax obligations will come down to the source of the funds you’re receiving from abroad. The rule of thumb for an Australian resident is that if it’s income, then it’s taxable. This could include any money that you’ve earned from a business venture, employment or investment property. However, if it’s a cash gift or a one-time occurrence such as a lottery win, then the transaction is likely to have no tax implications. 

But at the end of the day, it’s always best to seek out professional advice, as every person’s circumstances will differ, and there could be consequences if you don’t report your IMTs properly to the Australian Taxation Office (ATO). 

For more information, read our article covering the ins and outs of international money transfer tax.

If you’re running a business, you’ll probably need to pay overseas suppliers or contractors at some point. The good news is, banks and IMT specialists usually extend their services to business money transfers, so you’ll have plenty of providers to pick from when making these international payments. Just as you would with a personal money transfer, it’s worth shopping around and looking out for features like high exchange rates, low to no fees, fast transfer speeds, few transfer limits and top-notch customer service. That way, you can ensure you’re getting the most bang for your buck while also minimising any delays to your payments.

The information on IMT rates is updated hourly, but due to the fluctuating nature of foreign exchange, there may be a small difference to the ‘live’ price you receive at the exact time of your overseas money transfer.

Mozo compares rates for many major IMT providers operating in Australia, including online-only foreign exchange specialists and the big four banks.

Are you now wondering how to transfer money to an overseas bank account in Norway? Or how to transfer money overseas when you’re moving abroad? Check out our range of guides that can help you understand the basics of transferring money to many destinations around the globe.