How to Transfer Money Internationally with Minimal Fees
A Practical Guide for Expats and Global Movers
If you’re reading this, chances are you’re planning to move, work, study, or support someone abroad and wondering how to transfer money without losing half of it to fees. As someone who lives in Korea and has helped many foreign friends manage money between countries, I can tell you that with the right approach you can save a surprising amount on fees and exchange rates.
International money transfers aren’t just about clicking “send.” They involve costs that vary widely depending on the service you use, how you pay, and when you transfer. Here’s a straightforward, experience-based guide to moving your money efficiently — without the usual stress.
Why the Cost of International Transfers Can Be High
Before we talk about solutions, it helps to know what drives the cost:
- Transfer fees – The fixed charge a bank or service adds per transfer
- Exchange rate markups – Many institutions give you a worse currency exchange rate than the market rate
- Receiving bank fees – Some banks charge to receive international transfers
- Intermediary bank fees – Occurs especially with SWIFT transfers through multiple banks
Understanding these hidden costs makes it easier to choose services that minimize them.
Use Online Money Transfer Services Instead of Banks
Traditional banks are often the most expensive way to send money internationally. They typically charge:
- A flat transfer fee
- A percent markup on the exchange rate
- Possible intermediary charges
In contrast, many online services offer much better fees and transparent exchange rates. Some popular options include:
- Wise
- Remitly
- WorldRemit
- PaySend
- OFX
These platforms often use the mid-market exchange rate (the real rate you see on Google) and charge a clear, often lower fee. That alone can save you hundreds compared to a bank transfer.
Compare Exchange Rates Before You Transfer
Exchange rate differences can make a bigger impact than the transfer fee itself.
For example:
Two services might charge the same fee, but if one gives you a better exchange rate, you end up with more money on the receiving side. Before you send money, check:
- The real (mid-market) exchange rate
- The rate your service offers
- Whether the service adds a markup
Sites like XE or Google Finance show you the true market rate so you can compare.
Timing Matters, But Don’t Try to “Time the Market”
Currency markets fluctuate throughout the day and week. In theory, you could try to make a transfer when the rate is more favorable, but realistically, predicting the market is hard for most of us.
Instead:
- Transfer regularly rather than waiting for a “perfect rate”
- Set alerts in comparison apps for when a rate reaches a target you’re comfortable with
A consistent transfer plan often beats waiting.
Choose the Right Transfer Method
Different transfer methods suit different needs:
1. Bank Transfers (SWIFT)
Safe and reliable, but often expensive and slow. Many banks still use this method, so it’s best reserved for large transfers where speed and safety outweigh cost.
2. Online Transfer Services
These are often the best balance of cost, speed, and transparency. They often deliver within minutes to a few hours.
3. Peer-to-Peer Currency Platforms
Some services match people who want to transfer money in opposite directions, cutting out large fees entirely.
Avoid Double Fees with Local Pickup or Digital Wallets
Sometimes money is sent abroad and picked up in cash, or loaded into a digital wallet. These options vary in fees:
- Cash pickup is convenient but often pricier
- Wallet transfers (like into a PayPal-linked account) can be cheaper if both sides support it
Check all costs before choosing this route.
Know the Fees at the Receiving Bank Too
Even if your transfer service is cheap, the receiving bank might charge a fee for incoming international money. If possible:
- Use a bank that doesn’t charge incoming transfer fees
- Send to online services that credit funds directly to an account without extra charges
In Korea, some local banks refund or waive incoming transfer fees, especially for accounts linked with online apps.
Split Large Transfers to Save on Fees
If you’re transferring a large sum, look at the fee structure:
- Flat fees are the same regardless of amount
- Percent fees increase with larger transfers
Sometimes splitting a large transfer into two smaller ones can reduce the total cost. Do the math before you send.
Consider Using Cryptocurrencies Carefully
Some people use cryptocurrencies for international transfers because they can be fast and inexpensive. This route has pros and cons:
- Pros: low fees, quick, decentralized
- Cons: volatility, exchange steps, regulatory complexity
If you’re comfortable with crypto and know how to convert it safely on both sides, it can be a powerful tool — but it’s not for everyone.
Records and Tax Considerations
Whenever you transfer significant sums, keep records. Some countries have tax reporting requirements for large international transfers. If you plan to send or receive large amounts regularly, consider:
- Consulting a tax advisor
- Keeping documentation of each transfer
This avoids surprises during tax season or immigration interviews.
Quick Checklist Before You Transfer
Before you hit “send,” check:
- Is the service giving the mid-market rate?
- Are there hidden fees at source or destination?
- Would splitting the transfer reduce cost?
- Does the receiving bank charge a fee?
- Have you compared services today?
Good habits here pay off quickly.
Final Thoughts from a Korean Local
Transferring money internationally doesn’t have to be expensive or stressful. With a bit of research and the right tools, you can keep more of your hard-earned money where it belongs — with you or your family.
Best practices include:
- Choosing online transfer services over traditional banks
- Comparing real exchange rates
- Watching both sending and receiving fees
- Keeping good records
These small decisions make a big difference over time.