Sending money abroad from the UK — whether to family, for a property purchase, or to pay for goods and services internationally — can be significantly more expensive than necessary if you use the wrong method. This article explains the main options available and how to avoid overpaying.
Why traditional bank transfers can be expensive
Many people default to sending international transfers through their regular bank, assuming it is the simplest option. However, traditional banks often apply a poor exchange rate — sometimes adding a margin of 3% to 5% above the real, mid-market exchange rate — alongside a separate transfer fee. This combination means traditional bank transfers are frequently the most expensive way to send money abroad, even though the upfront fee may look reasonable.
Specialist money transfer providers
Specialist currency transfer companies and apps — such as Wise, Revolut and various other FCA-regulated providers — typically offer exchange rates much closer to the real mid-market rate, with transparent, often lower fees. These providers are regulated in the UK by the FCA, and it is worth checking the FCA register (register.fca.org.uk) to confirm any provider you use is properly authorised.
The savings from using a specialist provider over a traditional bank can be substantial, particularly for larger transfers, where even a small percentage difference in exchange rate translates into a significant cash amount.
What to compare when choosing a provider
When choosing how to send money abroad, compare the exchange rate offered against the real mid-market rate (available on sites like xe.com or Google), any upfront transfer fee, how long the transfer takes to arrive, and the maximum and minimum transfer limits if relevant to your situation. Some providers advertise "no fee" transfers but make their margin entirely through a worse exchange rate — so always compare the total amount the recipient will actually receive, not just the headline fee.
Digital banks and international transfers
Some UK digital banks, such as Monzo, Starling and Revolut, offer competitive international transfer features built into their banking app, often using the same underlying technology as specialist transfer providers. If you already use one of these banks, it is worth checking their international transfer rates before using a separate service.
Cash transfer services
Services such as Western Union and MoneyGram allow cash to be sent and collected, which can be useful if the recipient does not have a bank account. These services tend to have higher fees and less competitive exchange rates than online specialist transfer providers, but offer the advantage of cash collection in many countries worldwide.
How to send money safely
Whichever method you choose, only use FCA-regulated providers (or equivalent regulation if the provider is based outside the UK), be wary of unusually good exchange rates that seem too good to be true, which can be a sign of a scam, and never send money to someone you do not know personally based on an unsolicited request, regardless of how convincing the request appears — romance scams and other fraud involving international transfers are unfortunately common.
Sending money for a property purchase abroad
If you are sending a large sum — for example, to buy property abroad — it is particularly worth using a specialist currency provider rather than a traditional bank, as the savings on a large transfer can run into thousands of pounds. Some specialist providers also offer the ability to lock in an exchange rate in advance (a forward contract), which can provide certainty if you need to transfer a large sum at a future date and want to protect against unfavourable exchange rate movements.