International Money Transfer Comparison

Simply put, an international money transfer (IMT) is any transaction you make from one country to another. Unlike a domestic money transfer which takes place locally, an IMT involves a sender moving funds across national borders to a destination of their choice, for instance, from Australia to the US. Usually those funds are deposited into a recipient’s or the sender’s own foreign bank account, or they can be retrieved at a bank branch or remittance centre overseas (this is known as a ‘cash pick-up’). 

IMTs can consist of small or large amounts, ranging from a couple hundred bucks to millions of dollars, and they can be one-off or done on a regular basis, depending on the purpose of your transfer. 

There are a whole range of reasons why you might consider an international money transfer, including: 

• Gifting cash to family and friends abroad

• Providing emergency funds to loved ones in need

• Transferring part of your income back home (if you’re an expat) 

• Paying overseas bills, such as mortgage repayments and tuition fees (if you’re an international or exchange student)

• Buying a property, car or boat overseas

• Renting a property overseas 

• Financially preparing for a retirement abroad.

Your options when transferring money overseas

With the wonders of modern technology, transferring money overseas has never been simpler. But while there are many ways to transfer money overseas, being careful about what provider you transfer with could save you a pretty penny.

In Australia, there are different types of providers available for sending money overseas. The right option for you will depend on factors like whether it’s a one off or regular transfer, how much money you need to transfer in any one hit, where you are sending your funds to, and how quickly you need to transfer money.

You’ve got a choice between: 

• Specialist international money transfer providers: These companies are listed in our comparison tables above. Unlike banks and credit unions, specialist IMT providers have built their whole business around transferring funds around the globe, so they have a lot of expert knowledge in this area. Plus, they generally offer sharper exchange rates and lower fees than the options below. Most of their platforms are online, so you can make transfers anytime of the day or night. With many IMT specialists like OFX, TorFX and WorldFirst, there are no maximum limits to how much you can transfer, but a minimum limit ranging from $50 and $10,000 can apply, depending on the provider.

• Banks and credit unions: Most banks and credit unions will have money transfer facilities. They will usually charge more if you go to the branch to do a transfer than if you did it yourself online, and their exchange rates and fees also tend to be less competitive than specialist IMT providers. Often the maximum amount you can transfer online is subject to your ‘pay anyone’ limit, although you could potentially increase that threshold by visiting your local branch and requesting a raise there. At Mozo, we compare international money transfers offered by the big four banks: ANZ, NAB, Westpac and Commonwealth Bank.

• Cash transfers via PayPal or Western Union: For smaller transfers, you may consider services like PayPal and Western Union. With Western Union, you can send up to AUD50,000 each time, while the maximum amount per transaction for PayPal is AUD60,000 (the cap may change depending on your currency). However, both options can get expensive, as they come with weaker exchange rates and higher fees than other money transfer options. That said, if you are looking for speed and convenience, transactions between PayPal accounts take place almost instantly, while for Western Union, funds via cash transfer could reach the recipient within minutes. With Western Union, you can either deposit money into your recipient’s bank account or arrange for a cash pick-up.

What are my best international money transfer options?

When sending money overseas, two of the most popular options in Australia are using a specialist IMT provider or making an international bank transfer.

IMT specialists are independent from banks, and have some of the best exchange rates and fees on the market. In fact, all of the winners of our long-standing Mozo Experts Choice Awards for best value International Money Transfer are IMT specialists like SendFX, WorldFirst and InstaReM. They don’t offer face-to-face service, but their phone and online service options are often fee-free, and many also provide their customers with a personal account manager who can talk you through your money transfer options and answer any queries or concerns. 

Meanwhile, international bank transfers happen with your existing Australian bank account, so you won’t need to set up any additional accounts. Banks may charge higher fees and offer lower exchange rates than IMT specialists, but they usually have the option of in-branch customer service, where a banker can assist with the transfer process (though there are often fees attached to this).

Is it best to go with a bank or IMT specialist?

There’s no right or wrong answer when it comes to choosing between a bank or an IMT specialist for your money transfer, as the decision should be based on what pros and cons work best with your individual circumstances. 

For instance, while banks are convenient to access and offer face-to-face customer service and assistance, you might not get a competitive exchange rate and may have to pay a high transfer fee. 

So if you care about getting your money’s worth, sticking with your existing bank won’t be enough. When you’re sending tens of thousands of dollars overseas, even a small difference in the exchange rate could mean hundreds of dollars lost or saved. So for large or regular transfers, it may be financially wiser to shop around for an IMT specialist, as they typically offer better rates and are often fee-free. 

However in most cases, IMT specialists are 100% online and can only be reached by phone or live chat, so they may not suit customers who prefer to do all of their banking in person. 

How do I find the cheapest international money transfer?

If you’re looking for the cheapest way to transfer money overseas, Mozo has you covered. We make searching for the right international money transfer provider easy, comparing a range of IMT specialists and big banks side-by-side, so you can clearly find up-to-date exchange rates and any fees that may be hidden in fine print.

For a more personalised quote, get started by entering the amount you want to transfer, and your start and end currencies. Hit ‘Go’ for an estimate of how much you’ll get in the currency of your choice, as well as information about transfer speeds and transfer limits.

The Mozo Experts Choice Awards for International Money Transfers are another great place to start your search. Every year, Mozo’s money experts hold these awards to help Australian consumers find the cheapest IMT providers around. They spend hours assessing a broad range of providers, including banks and non-bank specialists, in order to reveal which ones have the most competitive exchange rates and fees in the market.

Head over to our Mozo Experts Choice International Money Transfer Awards page for a full list of winners. 

How does transferring money overseas work?

If you opt to go with an specialist international money transfer provider and this is your first time sending money overseas, you may be unsure of how to create an account and make a transaction. The good news is, it's quite straightforward and there are usually only a few steps involved:

STEP 1: Open an account 

You’ll first need to set up an account with your chosen provider. This is usually a quick process and can be done online. Some IMT providers promise this step won’t take more than a few minutes, but to save yourself any further hassle, make sure to have your personal identification documents (such as your driver’s licence and passport) by your side before you sign up. This information will help the provider verify your identity. 

STEP 2: Move funds into the account

Once the provider has verified your identity, you’ll be issued with an account and account number. You’ll have the option to transfer funds to this account from your bank account in your local currency. You can also receive funds from overseas into this account. 

STEP 3: Provide transfer details 

When it is time for you to make an overseas transfer, you can simply go onto the platform, select the currency you want to transfer and the amount, and agree on the exchange rate and fees. Then you’ll need to provide the account details of the recipient, including: 

• Their full name and address

• Their account number or IBAN (International Bank Account Number) 

• Their bank’s name and address

• BIC/SWIFT code (the bank’s unique identification code, which should be available on its website)

STEP 4: Let your provider handle the rest

Once the funds are cleared, your money will be sent to your recipient. It can take up to five business days for the money to appear in the recipient’s bank account, but in many instances, it should take less than 24 hours if you’re sending in a major currency like the USD or EUR. To be on the safe side, it’s best to double check the timing with your provider before making your transfer. 

Some IMT specialists also offer real-time tracking, which means you’ll be able to see where your money is at all times. You should be able to track your transfer online or over the phone, with the confirmation number you would have received from your provider after completing your transaction. 

Can I complete an international money transfer online?

Yes! Not only can you transfer your money online, but it’s also usually cheaper than over-the-phone and in-person transfers, as the latter two options come with higher fees. 

In fact, many IMT specialists like XE, Worldfirst and OFX, whose business solely focuses on sending money overseas, will encourage you to transfer through their specialised website or app. This option is generally free, helping you get better bang for your buck. Meanwhile, with the big banks, online transfers can go up to $12, while in-branch transfers can cost as much as $32. 

If you want to do the maths yourself, our comparison table above shows how much each IMT provider in our database charges for different transaction methods. 

What happens if I have a problem and the money doesn’t arrive?

International money transfers can take up to five business days to be delivered so if your recipient hasn’t received your transfer after this period, it could be worth tracking your transfer with your confirmation number. This will show you if the transfer was delayed and allow you to make sure you’ve entered the correct details. Getting in touch with your IMT provider could also provide you with an update or more information on the status of your transfer. 

Another potential reason your international money transfer hasn’t been received is because your provider is performing a security check to make sure all transfers are legitimate. 

If it’s been over a week and your transfer still hasn’t been delivered, you might want to consider cancelling the transfer. This can be done either online or by calling your IMT provider directly, and while you should receive a full refund, you may have to pay a cancellation fee. 

For more information, check out our guide to what happens if your overseas transfer isn't received.

Are international money transfers safe?

If you go with a reputable international money transfer provider, your money should be in safe hands. Both banks and IMT specialists must undergo regular audits and they are also regulated by the Australian Securities and Investments Commission (ASIC) to ensure they’re following best practice. 

All IMT providers that we compare on our site are authorised by ASIC and hold an Australian Financial Services (AFS) licence. This means that should something go wrong and you end up in a dispute with your provider, you’ll have an independent government body - the Australian Financial Complaints Authority (AFCA) - to turn to for a resolution. 

Besides regulatory compliance, IMT providers on our site also use top of the line security systems, so that they can protect your personal details and get your cash to where it needs to be safely.