Finding a trustworthy money transfer service can be challenging. Here’s a guide to the best options for sending and receiving money as an international student.
Choosing a Money Transfer Service
Figuring out how to send or exchange money between currencies as an international student can be pretty overwhelming.
While it might seem like using traditional banks is the safest and most reliable way to transfer money internationally, they often come with hidden fees and complicated processes.
Thankfully, there are now more alternative ways to send and receive money while studying overseas, including specialist money transfer services and non-bank providers.
Take a look below for a breakdown of the fees involved in international money transfers, along with the best services that might work for you.
How Much Does It Cost to Send Money Abroad?
The cost of transferring money internationally depends on the currency, where the money is being sent, and who is sending it. Each bank and provider has its own fee structure, and they all add their own charges on top of the daily exchange rate.
Here are the three main types of fees you should be aware of:
- Sending Fee – Most traditional banks will charge you a fee just to send money overseas, which can be around £30 or even more.
- Exchange Fee – Banks often add a markup of up to 5% on top of the actual exchange rate. This hidden charge can add up fast, especially if you’re transferring large amounts or doing it often.
- Receiving Fee – Some banks may also charge the person receiving the money a fee for accepting an international payment. This fee varies depending on the bank.
Because of these different fees, shopping around before making any transfers can save you a significant amount of money.
What’s the Cheapest Way to Transfer Money Internationally?
In general, using a money transfer specialist or a non-bank payment service provider (PSP) is the cheapest way to move money abroad.
These providers are third-party services that let you hold and transfer money in different currencies. Examples include Wise (formerly TransferWise), OFX, and CurrencyFair.
These platforms usually offer much lower fees compared to traditional banks, making them a great choice for international students who need to make frequent transfers.
How Are Money Transfer Specialists and PSPs Different from Banks?
It’s good to know that money transfer services and PSPs aren’t banks. That means you won’t be able to get an overdraft, take out a loan, or earn interest on savings through them.
They’re not meant for storing money long-term, but are instead designed to work alongside your regular bank account.
The benefit is that they let you send, receive, and spend in different currencies with either no fees or much lower fees than banks typically charge.
What’s the Best Transfer Option for International Students?
Here’s a quick comparison chart to help you start your search for the right transfer service. This list isn’t exhaustive, so make sure to do your own research based on what you need.
| Name | Which currencies do they support? | How do I set up an account? | What are the perks? |
|---|---|---|---|
| Wise multi-currency account | Receive in EUR, GBP, AUD, NZD, RON, HUF, and SGD | Sign up and provide photo ID | Receive money for free in supported currencies. Spend freely in any supported currency. Comes with a card, UK account number, Euro IBAN, and US routing number. |
| CurrencyFair | Send/receive money to/from over 150 countries | Sign up and provide photo ID | Offers same-day transfers for most transactions. |
| OFX | Commonly used in Australia | Sign up and provide photo ID | Fixed transfer fee, e.g., $15 AUD for transfers under $10,000. Popular with international students in Australia. |
| Western Union | Widely used in the UK | Sign up with photo ID and a valid email | There are numerous physical locations in the UK for in-person transfers. Offers refer-a-friend deals. |
| XE | Send to over 130 countries | Sign up with photo ID and a valid email | Available for transfers under £10,000. |
| WorldRemit | Send to over 130 countries | Sign up with photo ID and a valid email | Money typically arrives within minutes. |
| Flywire | Mainly for tuition payments | Used to pay university fees in home currency | Offers services to help students manage tuition payments. |
| MoneyGram | Popular in the UK | Sign up with a valid phone number and email | Frequently used for UK-related transfers. |
Important Things to Think About Before Choosing a Transfer Service
- How much and how often will you be transferring?
If you’ll be making regular transfers, look for a service that gives you the best deal across multiple transactions. If it’s a one-time or particularly large transfer, check if there are any current offers that better suit your needs. - Do they support the currencies you need?
Most providers handle major currencies, but it’s essential to confirm that your chosen service supports both the currency you’re sending and the destination country. - What kind of protection is offered for your money?
Always double-check that any service you use is properly regulated. Different countries have different financial regulators: the Financial Conduct Authority (UK), the Consumer Financial Protection Bureau (US), the Financial Consumer Agency of Canada, and the Australian Prudential Regulation Authority. Also, look at reviews and ask your university, friends, or family for recommendations before committing. - How long does the transfer take?
Most services take a few days to process transfers, but this varies depending on the provider, the countries involved, and the transaction type. Make sure you’re aware of transfer times so you can manage your money properly.