Sending money internationally can be frustratingly expensive, especially when banks and traditional services charge high fees and poor exchange rates.
Whether you’re sending money to family abroad, paying for international services, or receiving payments from overseas, the costs can quickly add up.
Those fees might not seem significant for a single transaction, but they become substantial when you’re sending money regularly.
The good news is that you don’t have to accept expensive bank transfers as your only option.
Several modern services offer much cheaper ways to send money internationally while maintaining security and reliability.
By choosing the right service and following smart strategies, you can save hundreds or even thousands of naira on international transfers.
Below is how to send money internationally at the cheapest rates:
Understand How Transfer Fees Actually Work
Before choosing a transfer service, you need to understand how international money transfer fees work. Most services charge you in two ways: an upfront transfer fee and an exchange rate markup.
The transfer fee is the obvious cost, the amount they charge to process your transaction. This can range from nothing (free) to several thousand naira, depending on the service and amount.
The exchange rate markup is the hidden cost that many people overlook. Services make money by offering you an exchange rate that’s worse than the real market rate.
For example, if the real USD/NGN rate is ₦800 per dollar, they might offer you ₦780. That ₦20 difference per dollar is their profit, and it adds up significantly on larger transfers.
On a $1,000 transfer, a ₦20 markup equals ₦20,000 in hidden fees, much more than the upfront fee. Always check both the transfer fee AND the exchange rate before choosing a service.
Some services advertise “no fees” but make up for it with terrible exchange rates. Others charge upfront fees but offer exchange rates much closer to the real market rate.
The cheapest option overall is the one with the lowest combined cost of fees plus exchange rate markup. Compare the total amount the recipient will receive, not just the advertised fees.
Use Wise (Formerly TransferWise) for Transparent Pricing
Wise is one of the most popular and affordable international money transfer services. The platform is known for transparency; they show you exactly what you’re paying and why.
Wise uses the real mid-market exchange rate with no markup. This is the rate you see on Google, the actual rate banks use when trading with each other.
They charge a small, transparent fee (usually 0.5-2% depending on currency and payment method). You see the exact fee before confirming your transfer, with no surprises.
For most currency corridors, Wise is significantly cheaper than banks or traditional services like Western Union. The service is also fast many transfers completed within 1-2 business days.
Wise offers bank transfers, debit card payments, and other payment methods depending on your location. They’re regulated in multiple countries and have transferred over $100 billion for millions of customers.
To use Wise, create an account on their website or app. Verify your identity with required documents (usually ID and proof of address).
Enter the amount you want to send and choose the recipient currency. Wise immediately shows you the fee, exchange rate, and exact amount the recipient gets.
If you’re satisfied, confirm the transfer and pay through your preferred method. The recipient receives the money directly in their bank account in their local currency.
For regular international transfers, Wise is often the cheapest and most transparent option available.
Try Remitly for Fast and Affordable Transfers
Remitly is another excellent option for international money transfers, especially to developing countries. The service offers competitive rates and often runs promotions for new users.
Remitly has two transfer options: Economy (cheaper, slower) and Express (more expensive, faster). Economy transfers can take 3-5 business days but offer better rates.
Express transfers deliver within minutes or hours but cost more. For most situations, the Economy option provides the best value.
The service supports numerous countries and currencies across Asia, Africa, Latin America, and Europe. Remitly’s fees and rates vary by destination, amount, and payment method.
They’re usually competitive with or better than banks and traditional money transfer services. The app is user-friendly and offers delivery options including bank deposits, cash pickup, and mobile money.
For some corridors, Remitly offers promotional rates that beat almost every other service. New users often get their first transfer with reduced or zero fees.
To use Remitly, download their app or visit their website. Create an account and complete the identity verification process.
Choose your destination country and enter the transfer amount. Remitly shows you the exchange rate, fees, and exact delivery amount.
Select your delivery method and recipient details. Pay using bank transfer, debit card, or credit card (though cards usually cost more).
The recipient can collect cash, receive a bank deposit, or get mobile money depending on the country.
Use WorldRemit for Mobile Money Transfers
WorldRemit specializes in international transfers to mobile money accounts, banks, and cash pickup locations. The service operates in over 150 countries with competitive rates and fees.
WorldRemit is particularly good for sending money to Africa, where mobile money is popular. You can send directly to M-Pesa, MTN Mobile Money, Airtel Money, and other mobile wallets.
This is often faster and more convenient than bank transfers in many African countries. The service offers transparent pricing with fees shown upfront before you confirm.
Rates vary by destination and amount, but they’re generally competitive. First-time users often receive promotional rates with reduced fees.
Most transfers complete within minutes to hours, making WorldRemit one of the faster options. The app is easy to use with good customer support if you encounter issues.
To send money through WorldRemit, create an account on their website or mobile app. Complete the verification process with your identification documents.
Select your recipient’s country and enter the amount to send. Choose the delivery method: mobile money, bank deposit, or cash pickup.
WorldRemit shows you the total cost including fees and the amount the recipient will receive. Enter your recipient’s details and confirm the transfer.
Pay using bank transfer, debit card, or credit card. The recipient usually receives notification immediately when funds are available.
Consider Sendwave for Zero-Fee Transfers
Sendwave offers international money transfers with zero fees for many corridors. They make money through exchange rate markups, but these are often competitive.
The service focuses on remittances to Africa, Asia, and Latin America. For transfers to countries like Nigeria, Ghana, Kenya, and Uganda, Sendwave can be excellent value.
There are no fees at all you pay exactly the amount shown with no surprises. The exchange rate is built into the transaction, and it’s generally competitive.
Because there’s no separate fee, you know exactly what you’re paying upfront. Transfers typically complete within minutes to a few hours.
The app is straightforward with minimal complications in the transfer process. First-time users often receive promotional exchange rates that offer even better value.
To use Sendwave, download their mobile app (they focus on app-based service). Create an account and verify your identity with required documents.
Enter the recipient’s details and the amount you want to send. Sendwave shows you exactly how much the recipient will receive.
Confirm the transfer and pay using your debit card or bank account. The money typically arrives quickly, often within minutes.
While Sendwave’s exchange rates include their profit margin, the total cost is often lower than services with fees. This makes it excellent for smaller transfers where fixed fees would be proportionally expensive.
Use Cryptocurrency for Large Transfers
For larger international transfers, cryptocurrency can sometimes offer significant savings. Bitcoin, USDC, or other stablecoins can be sent internationally with minimal fees.
The process involves buying crypto in your country, sending it abroad, and having the recipient convert it back to local currency. his bypasses traditional banking systems and their high fees entirely.For large transfers (several thousand dollars or more), the savings can be substantial.
However, this method requires both sender and recipient to be comfortable with cryptocurrency. You’ll need crypto wallets an understanding of how to buy and sell crypto safely.
Exchange fees exist on both ends (buying and selling the crypto), but they’re often lower than bank transfer fees. The main risks are price volatility (crypto prices change constantly) and complexity (you need technical knowledge).
For these reasons, crypto transfers work best for people familiar with cryptocurrency. Platforms like Binance, Coinbase, and local crypto exchanges facilitate this process.
Use stablecoins like USDC or USDT to minimize price volatility during the transfer. These cryptocurrencies are designed to maintain a stable value pegged to the US dollar.
Send the crypto to the recipient’s wallet address (ensure it’s correct crypto transactions are irreversible).
The recipient then sells the crypto on their local exchange and withdraws local currency. While not suitable for everyone, crypto transfers can save hundreds or thousands on large international transfers.
Compare Services Before Every Transfer
The cheapest service can vary depending on the corridor, amount, and current promotions. Don’t assume the service that was cheapest last month is still the best option today.
Use comparison websites like MoneyTransferComparison or CompareRemit before each significant transfer. These sites show you rates from multiple services side by side.
Enter your send amount, currencies, and destination to see real-time comparisons. Pay attention to the total amount the recipient receives, not just advertised fees.
Check for promotional offers—many services offer discounts for first-time users or specific corridors. If you’re sending regularly to the same destination, test different services to find your best option.
Sometimes a service that’s expensive for one corridor offers excellent rates for another. Keep accounts with 2-3 different services so you can always choose the cheapest option.
For very large transfers, even a 0.5% difference in rates can mean significant savings. On a $10,000 transfer, a 0.5% better rate saves you $50 (about ₦40,000).
Spending a few minutes comparing services can save you substantial money on every transfer.
Pay With Bank Transfer, Not Cards
Your payment method significantly affects the cost of international transfers. Most services charge extra fees when you pay with credit or debit cards.
These fees can be 1-3% of the transfer amount on top of regular charges. Paying by bank transfer (direct debit or ACH in the US) is almost always cheaper.
Bank transfers may take 1-2 extra days to process, but the savings are worth it for most people. Only use card payments when you need extremely fast transfers and are willing to pay the premium.
Some services offer instant bank payments that are as fast as cards without the extra fees. Check if your chosen service supports instant bank payments in your country.
Set up bank payment as your default method to avoid accidentally using more expensive options. The cost difference can be significant—on a $1,000 transfer, a 2% card fee costs you an extra $20.
That’s money you’re giving away unnecessarily when cheaper payment options exist.
Send Larger Amounts Less Frequently
If you’re sending money regularly, consider consolidating transfers to save on fees. Many services charge flat fees regardless of the amount sent.
Sending $1,000 once is cheaper than sending $250 four times if there’s a flat fee per transaction. However, this only works if the service charges flat fees rather than percentage-based fees.
Check the fee structure before deciding your transfer strategy. For percentage-based fees, the frequency doesn’t matter much—you pay the same total percentage either way.
Consider the recipient’s needs when planning transfer frequency. If they need regular small amounts for daily expenses, frequency might matter more than cost savings.
Balance cost savings against convenience and the recipient’s actual needs. Sending larger amounts less frequently can save significantly on fees but requires more planning.
Avoid Airport Currency Exchange and Hotels
If you’re traveling and need to exchange currency, never use airport exchange services. They offer the worst exchange rates you’ll find anywhere—often 10-15% worse than market rates.
That’s an enormous hidden fee on top of any service charges they might add. Hotel currency exchange is similarly expensive with poor rates and high fees.
The same applies to tourist area exchange bureaus that seem convenient but are overpriced. Instead, withdraw cash from ATMs using a debit card with low foreign transaction fees.
Many online banks and financial services offer cards with minimal or no foreign transaction fees. Cards like the Wise debit card offer excellent exchange rates and low ATM withdrawal fees worldwide.
If you must exchange cash, use reputable exchange bureaus in city centers rather than tourist areas. Research the current exchange rate before you travel so you recognize when you’re being overcharged.
For larger amounts, transfer money to a local bank account using services like Wise before you travel. This gives you the best rates and avoids carrying large amounts of cash.
Planning ahead saves you from expensive last-minute exchange options.
Final Words
Sending money internationally doesn’t have to drain your finances through high fees and poor exchange rates. By using modern transfer services instead of traditional banks, you can save significantly on every transaction.
Services like Wise, Remitly, WorldRemit, and Sendwave offer transparent pricing and competitive rates. The key is understanding total costs (fees plus exchange rate markup) rather than just advertised fees.
Compare multiple services before each transfer to ensure you’re getting the best available rate. Use bank transfers instead of cards for payment to avoid unnecessary fees.
For large transfers, the savings from choosing the right service can be substantial. Even on smaller transfers, consistently choosing cheaper options saves hundreds or thousands annually.
Stay informed about new services and promotions that might offer even better rates. With the right knowledge and tools, you can ensure more of your money reaches its destination rather than disappearing in fees.
