Every day, millions of dollars are transferred between people and businesses worldwide. As technology has eased how businesses transact, many companies have also started offering international money transfer services in Australia.
These online money transfer companies in Australia are superior to banks as they offer more convenience, lower fees, and high transfer speed. Considering these benefits, people no longer rely on expensive banks for overseas money transfers and are slowly turning to online services.
This guide discusses the best ways to transfer money overseas and answers commonly asked questions on international money transfers and money transfer companies in Australia.
1. What Is An International Wire Transfer?
International Wire Transfer sends money from your bank account in Australia to other people or businesses in other countries. People use this transfer option to send money to their friends, family, and others worldwide.
To send money overseas to another country, you will require the assistance of a bank or a specialist money transfer service to convert the funds to the recipient's currency.
Based on your chosen money transfer service, you can send funds online, through a mobile app, in person, or over the phone. Let's discuss the best way to transfer money overseas from Australia.
2. What Is The Best Way To Transfer Money Overseas From Australia?
Here are our top websites and apps that you can consider for overseas money transfers:
Wise (formerly called TransferWise)
Wise is the most trusted and transparent money transfer company worldwide. It is best known for its outstanding customer service and minimal fees for exchange rates and transaction fees.
Year of Establishment - 2011
Client Served - Global
Global Presence - 50+ supported countries
Currencies - 20+ provided
Regulation - Registered with the FinCEN and authorised by the FCA as an Electronic Money Institution.
Rating - Excellent 4.6/5 rating on Trust Pilot
Fees - Transparent and low fees
Transfer time - 1 to 3 business days
It is the best money transfer service for people wanting to know the cheapest way to transfer money internationally. Wise charges a low fee compared to other banks.
Offer guaranteed rates for 24 to 48 hours
Highly transparent with its exchange rates
Fast transfer times. Users can receive funds in just 24 to 48 hours.
Trusted and recognised brand with more than ten years of experience
Only allows for bank-to-bank transfers are permissible
Only online mode is available to perform transactions
No facility for cash pickups
Lack of specialised assistance, particularly for more significant transactions
Based in Australia, SendFX is among the largest international companies that provide services to their clients for transferring money reliably, internationally, and securely.
Year of Establishment 2017
Clients Served: Worldwide
Currencies Offered: 50+ provided
Location: Gold Coast, Sydney, Melbourne
Platforms Offered: Retail Presence, phone service, online service
Regulation: Australian Financial Services Licence (AFSL) holder
Transfer Time: 1-2 days
Reviews: 4.7 on Trust Pilot
A dedicated personal manager onsite to discuss your requirements
24*7 multi-currency payments platform
Same-day payment to more than 200 countries
Zero Transfer Fee
Debit card or Credit card payments are not accepted
TorFX is an experienced money transfer company specialising in international money transfers and corporate financial exchanges. It has offices in the United Kingdom and Australia.
Year of Establishment: 2004
Clients Served: Global
Currencies Offered: 59 different international currencies
Location: Elkhorn Avenue Surfers Paradise Queensland
Platforms Offered: Phone service, Email, and Website
Transfer Modes: Bank transfers, debit cards, credit cards, etc.
Regulation: Australian Financial Services Licence (AFSL) holder
Fees: No transfer fees
Transfer Time: 1-2 days
Average Mark up: 1 to 3%
Reviews: 3,000 reviews and a 4.6/5-star rating on Trustpilot
Customers can send money via phone or the internet
Great customer service experience
Presence in several physical locations to facilitate face-to-face customer support
Serves more than 50,000 clients internationally
Unmatched exchange rates
The simple and hassle-free transfer process
Quick processing of transfers
User-friendly and easy-to-use website
Zero debt company with a Level 1 credit rating
Some exotic currencies aren't supported
Offices are only in the UK and Australia
Relatively smaller trading volumes
There are instances when the online system is down
Established in 1993, XE Money Transfer has had a reputation for reliable authority in the overseas exchange space for the last 30 years of trading.
Its overseas exchange service provides a wealth of trusted currency exchange information to financial institutions. The company works with more than 200 leading global brands, like Apple, Google, Amazon, and Walmart, to name a few.
Instead of making profits by charging a money transfer fee, they offer a higher exchange rate than the base rate to realise their profit goals.
Global Presence: The company has offices in more than 170 countries, including Canada, the US, and New Zealand.
The FCA authorises XE and has an AFSL license. Norton Security protects it.
Transfer fees: AUD 0.00
Transfer time: 2-3 Days
Almost 50,000 reviews on Trustpilot and an overall rating of 'Excellent'.
Globally recognised name in international money transfers with over three decades of experience
Provides a facility to do same-day transfers to around 170 nations
A massive customer base of over 285 million visitors each year
Over 65 million app downloads since its launch date.
Capable of transferring currency into any other available currency.
Consistent provider of the best exchange rates on the market
It offers 24-hour tracking of customers' money transfers.
Quick and easy-to-use website
No transfer fees and competitive exchange rates
Payment isn't acceptable via cheque/ cash.
Limited customer support over the weekend.
Do not support all global currencies.
Limited pay-out options
OFX is another well-known Australian-based money transfer company. It has been in the money transfer business for over 20 years. The company is suitable for small to medium size businesses as it helps them reduce the cost of their overseas payments.
More than two decades of experience in providing money transfer services abroad
It has a vast disbursement network, with eight operation offices in Australia, the UK, New Zealand, San Francisco, Singapore, Canada, Hong Kong, and Ireland.
Make transfers to over 170 countries.
Transfer time/speed: 1 -3 days
Transfer fees: AUD 0.00
Exchange rate margins: 1.5% above the mid-market rate
Average Trustpilot score: 4.4
Trading Volume: Handled transactions totalling more than A$117 billion to date
Competitive exchange rates for more significant amounts
Lock in exchange rates using a forward exchange contract
Intuitive mobile app and online platform
Several physical offices worldwide make it easier for people to get a one-on-one customer experience
Integration with Xero
Premier 24/7 customer services
Low fees and exchange rate markups
The minimum transfer amount through this platform is USD 1,000
Not as competitive when transferring amounts below $2,000
Transfer using a cheque, cash, or credit card isn't acceptable
Foreign currency accounts are limited to online sellers
Payment through bank transfer only
3. How Can You Transfer Money Overseas?
There are various transfer methods available to transfer money overseas.
The most common ones include the following:
Money Transfer Companies
These companies specialise in moving funds overseas. They can operate in person or online and will allow fund transfers funds directly to a bank account.
Money transfer companies offer speedy money transfers at a competitive exchange rate. As companies charge differently, you must check the fees and terms and conditions before finalising the provider. Wise is Australia's transparent, safe, and fully regulated money transfer service provider.
Peer-To-Peer Transfer Services
A peer-to-peer transfer is a decentralised platform where the sender and the receiver directly interact via the internet or mobile network without involving a third party.
The funds are sent and received between reliable contacts, including friends, family, acquaintances, and colleagues. Examples of Peer-Peer transfer services are Wise and PayPal.
An international bank transfer involves transferring funds from your bank account to an international account via the bank's mobile app or in person at a branch.
However, when you do a bank-to-bank overseas transfer, you will incur high fees compared to a money transfer company. The exchange rate is less competitive, and the process may take up to 5 business days for the funds to arrive at the recipient.
"Wire transfer" is often the simplest way to send funds to an overseas bank. Once you have activated "overseas fund transfer", your bank can transfer funds to the chosen person overseas.
When choosing a bank transfer, compare the exchange rate and transfer fee at different banks before deciding. Generally, banks require 2 - 3 business days to execute wire transfers.
4. How Much Does An International Money Transfer Cost?
The cost of transfer depends on various factors such as:
Which company do you use for funds transfer?
Which country are you transferring the money to or from?
How are you paying for the transfer (cash, credit card, debit card, etc.)?
The exchange rate between countries
5. What Factors Do You Need To Consider When Transferring Funds Overseas?
You can find a wide range of money transfer service providers online. To choose the best one, you must compare them on the following factors:
Security And Safety
ASIC regulates the online money transfer industry, which assures peace of mind that your money is safe and stored in a low-risk financial institution.
The Exchange Rate
It is the conversion of the currency of one country to another. The exchange rate can have a more significant impact on fund transfers when they are large. Even a slightly better rate can save you thousands of dollars.
The exchange rates offered by different banks and credit unions can be different. Look for companies that offer promotions such as "locked-in" or fixed exchange rates. Many companies offer the best price guarantees to secure the exchange rate.
Follow the market trends for the country where you are sending money.
Check if there are any times or patterns of the month/ year where the rate is better. You should only send money when exchange rates are in your favour.
The Amount Of Money You Are Transferring
Several companies can help you send small amounts of money. However, when transferring larger amounts of money, you must choose a company specialising in large-scale business transfers.
In that case, avoid using banks, as they add higher fees to transfer those amounts of money overseas.
It is the fee when transferring funds from one currency to another. Depending on your chosen service, it could be a flat fee or a percentage based on the transfer amount.
The transfer fee also depends on the method of transfer you are using. For example, you incur a higher cost when making a credit card transfer. Shop around and see which financial institutions, banks, or money transfer companies give the best rate on transfer fees.
Besides international money transfer rates, some companies also charge a receiving fee. This way, they profit from the person sending the money and the recipient of the funds.
Assess companies based on ease of use and a proven track record of outstanding customer service. Check whether their services are held to as high a standard as marketed.
Since not all companies offer their services to all countries, this is a factor in shortlisting many service providers. Check that the fund transfer provider allows sending money to your chosen country.
Acceptable Payment Modes
Check beforehand what kinds of payment methods a fund transfer service provider accepts. It is necessary because not all companies accept payments through credit cards.
You must check that you can make the transaction in your preferred payment mode.
Compare different international money transfers based on the features and facilities offered:
Mode of fund transfer: branch, online, app, or phone-based transfers
Account loading options
The processing and transfer time. Some online money transfer companies offer fast transfer speeds where banks take between 0 to 5+ working days to make the transfer. They either do transfers instantly or between 0 to 3 days on average. So, find the duration that works best for you and the recipient.
Check if the Australian Government's Financial Claims Scheme is protecting your money.
The acceptable range of currencies
Customer service and support
Transaction cancellation option and charges
Finally, check customer reviews about the companies for their credibility, reputation, and customer service satisfaction.
Use online comparison tools to compare the overall security, reliability, accessibility, and transfer speed to make the correct selection.
6. What Makes Money Transfer Services Superior To Banks For International Money Transfer?
Money transfer service providers specialise in transferring money as it is their business.
These companies have years of experience to ensure they provide the best value for money and a hassle-free money transfer experience. They strive to ensure their customers receive the best exchange rate at the lowest price possible.
One of the top reasons to choose a money transfer service is that it offers lower transfer costs than banks without sacrificing security and reliability. It makes it the cheapest way to transfer money overseas.
To find out which money transfer gives the best rates, specialist companies charge differently depending on the current market rate, the transfer amount, the recipient bank, etc.
The exchange rate offered by banks is less competitive than you get from a transfer specialist. Banks also charge a wire transfer fee of up to $40 per transaction. Due to the high exchange rates and associated fund transfer fees. Specialist money transfer services are best suited for large money transfers.
Bank wire transfers are generally slower compared with online service providers.
Banks require you to be an existing account holder to make a wire transfer. You must go through lengthy paperwork to do a fund transfer if you don't have an account.
Banks generally transfer to only other banks on the receiving end of the transaction. There is no such limitation in the case of online money transfer services. You can nominate any receiving account based on your choice.
A money transfer company does all the leg work for you and can save valuable time and money. They have streamlined the whole process.
7. How To Do an International Money Transfer From Australia?
Online international money transfer services are increasingly competitive with banks as they offer more flexible options and lower fees. Follow the below steps to send money abroad via a money transfer company.
Choose your money transfer provider (Wise is our No.1 recommended service)
Visit the official website of the company. Provide your basic contact details and register for an account online
Upload your photo to confirm your identity to prevent fraud.
You may also require to upload a scanned copy of your passport photo page or driver's license to qualify to transfer large sums of money.
Select the currency you own, the currency you require, and the amount you want to send. Now, place your transfer order online. It often involves locking in the exchange rate.
You will need the contact details if you send money to another individual. These include name, address, bank name, bank account number, bank branch number, or bank identifier code.
Link your preferred payment mode, such as bank account, credit card, and debit card, to your newly-created account to pay for transfers.
Pay the requested fees to the money transfer company.
You can track the progress of your fund transfer via email or on the website.
The transaction completes when the recipient receives the funds in his account.
8. How to Transfer Money Abroad from an Australian Bank Account?
If you want to do overseas money transfers from your bank, then this 3-step guide will help you execute the process smoothly.
Register with the bank by providing your personal information like name, contact number, residential address, and government-issued valid identity documents like your driver's license or passport. For larger transfers, you may also need to provide additional details for security purposes.
Log in to the online banking portal.
Navigate to the overseas money transfers section of your account. It is better to check your bank's exchange rates before placing the transfer order. You can do this by providing the address and SWIFT code of the recipient's bank which helps to identify international banks.
Provide money transfer details that include the currency, transfer amount, and the details of the person or business account to which you want to send money.
Make payment for the transfer service. Your bank will convert the money and send it overseas. It is worth noting that money transfers above $10,000 get automatically reported to a regulatory body in Australia named "AUSTRAC".
Besides banks, you can also take advantage of the money order facility at other financial institutions like post offices, large retailers, credit unions, specific convenience stores, and petrol stations.
9. Which Australian Bank Is Best For International Transfers?
It is necessary to compare banks' features and pros and cons to find the best one.
Banks are generally not recommended for international transfers due to their higher charges than specialist providers. They add a 4 to 5% markup on the exchange rate compared to the average 1% money transfer providers charge.
However, banks offer more safety and reliability compared to other transfer modes. Among all other banks, CitiBank is the best option to consider if you like to exchange currency with a bank. It offers the best foreign exchange rates and charges the lowest transaction fees if you wish to make a bank transfer.
Easier to send money internationally to a Citibank account or another bank account.
You get competitive exchange rates in comparison to other banks.
The fee is relatively high compared to online money service providers. You incur a fixed fee of $25 for most international money transfers. Though this fee is higher than other banks, they offer much better exchange rates than others, provided that you transfer over AUD 1,000.
It may take up to 5 days to process the transfer transaction and receive the money.
10. Frequently Asked Questions
How To Choose The Best Money Transfer Service To Send Money Internationally?
The below comparison will help you find the best money transfer for your purpose:
Online Money Transfer Method
Method: Funds are transferred electronically via an online fund transfer service
Low cost than banks
Flexibility to do from anywhere via mobile apps
In-Person Money Transfer
Method: You can visit the person and pay them by cash or send them money digitally
Multiple transfer options are available
In-person customer support
Local travel is involved
You can also transfer the money within business hours
Method: International Money Transfer or Wire Transfer through a bank
Highly secure and reliable
Can be funded through a bank account
Method: Write a cheque and send it to the recipient
No transaction fee is payable
You can cancel them in transit
Can be post-dated for delayed payment
Requires additional delivery time
Possibility of losing the cheque in transit
Method: Visit a post office to get a money order and mail it to the recipient
Comparatively safer and less susceptible to fraud
You can cancel it anytime in transit
Requires additional time for delivery
May get lost during transit
What Is The Best Company To Transfer Money Internationally?
Wise is the most preferred money transfer service for its commitment to bringing increased transparency to financial services, with a prime focus on zero hidden fees. The unique selling feature of this company is its transparency with its fee structure and exchange rates.
Over 12 million people use their services to transfer money worldwide. It is the best international money transfer app that offers a user-friendly interface to create and send a money transfer in less than 5 minutes.
Other reasons to choose this well-trusted and reliable brand:
Over ten years of experience
A wide range of payment modes are accepted, such as bank transfers, debit cards, and credit
The most loved company worldwide with 9/10 ratings on Trustpilot.
No minimum transfer size.
Guaranteed rates for 24 to 48 hours
Fast transfer times
Simple and Quick Money Transfer Process:
To send money through Wise, you must create an account by providing your address, contact number, email, bank account, date of birth, or credit card information.
To do the transfer, you must provide the recipient's name, address, bank account number, and International Bank Account Number. Once that is done, you need to enter the amount to be transferred and the currency.
The service will display fees and estimated transfer time for each payment method. Based on your requirements, you can make a transfer.
Are There Any Limits on International Money Transfers?
Legally, there are no minimum or maximum limits to the amount you can send outside Australia. However, money transfers beyond $10,000 are automatically reported to AUSTRAC.
Are International Money Transfers Taxed?
Tax laws depend on the country where the recipient lives. In Australia, you don't pay tax for overseas money transfers.
When Is The Best Time To Transfer Money?
It is best to transfer money on business days. You can submit transfers online outside of regular business hours.
However, funds won't get processed and received until the reopening of financial institutions. Only send money before weekends and holidays to ensure timely delivery.
Is International Money Transfer Safe?
Yes. Like banks, money transfer services also implement industry-standard measures to safeguard customers' data and money.
It includes data encryption, multi-factor authentication, SSL certificates, and regular monitoring to find and prevent fraudulent activity.
Is There an App To Send Money Internationally?
Since people are more accustomed to using apps, they often prefer money transfer services that allow app-based transactions.
Do you want to know which money transfer app is best in Australia? Consider the following money transfer apps along with their download links to send money abroad:
Wise - App Store/ Google Play
OFX – App Store/ Google Play
XE – App Store/ Google Play
TorFX – App Store/ Google Play
Paypal– App Store/ Google Play
Today, it has become easier than ever to send money overseas.
You have a significant selection available to find a reliable and economical international money transfer service to suit your needs.
Remember that the money transfer service for one person might not be the best for another. So, to get the best deal for your transfer, make sure you use a free online money transfer comparison tool to compare your options and find the best company.
Useful Links to Explore: