The short version
- An international transfer has two costs: the visible fee and the markup on the exchange rate. The markup is often the bigger one.
- Sending money still costs 6.36% of the amount on average worldwide, according to the World Bank. Banks are the most expensive type of provider.
- Compare providers on one number: how much the recipient gets for the same amount sent, at the same moment.
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When you send money abroad, you usually pay twice. Once in the fee you can see, and once in the exchange rate, where the provider gives you fewer euros, dollars or pesos than the market rate would. This guide shows how to find both costs and compare providers fairly.
The two costs in every transfer
The fee is the fixed or percentage charge shown on the quote. It is easy to compare, which is why many providers advertise "low fees" or "zero fees".
The exchange-rate markup is the difference between the mid-market rate and the rate you are given. The mid-market rate is the midpoint between buy and sell prices on the currency market, the rate you see when you search for a currency pair. If the provider converts at a worse rate, the gap is a cost to you even if it is not labelled as a fee.
That is why a "no fee" transfer can be more expensive than one with a visible fee. Only the amount that arrives tells you the full price.
How expensive is sending money today?
The World Bank tracks the price of sending the equivalent of $200 across hundreds of country corridors. Its figures are averages, so your own transfer can be cheaper or more expensive, but they show the size of the problem:
| Measure | Average cost | Period |
|---|---|---|
| Global average, all providers | 6.36% of the amount sent | Latest published figure |
| Banks | 14.55% | Q1 2025 |
| Post offices | 7.71% | Q1 2025 |
| Money transfer operators | 5.04% | Q1 2025 |
| Digital-only money transfer operators | 3.55% | Q1 2025 |
Source: World Bank Remittance Prices Worldwide. The UN Sustainable Development Goals aim to bring the global average below 3% by 2030, so the world is still roughly twice as expensive as the target.
The pattern is clear: banks are, on average, the most expensive way to send a small amount abroad, and digital-only services are the cheapest group. That does not make every app cheap or every bank expensive, so always check your own quote.
How to work out the real cost of a quote
You need three numbers from the quote: the amount you send, the fee, and the amount the recipient gets. Then look up the mid-market rate for the same currency pair at the same moment.
- What should arrive: amount sent × mid-market rate.
- What actually arrives: the amount on the quote.
- Total cost: the difference between the two, converted back to your currency. Divide by the amount sent to get a percentage.
Worked example (made-up numbers): you send €1,000 to the US. The mid-market rate is 1.10, so €1,000 is worth $1,100. Provider A charges a €5 fee and converts the remaining €995 at 1.08, so $1,074.60 arrives. The real cost is $25.40, about €23, or 2.3% of what you sent. Only €5 of that was called a fee.
Our free hidden fee calculator does this for you: enter the quote and it fetches the reference rate and splits the cost into fee and markup.
Five things that change the price
- The corridor. Prices vary a lot by sending and receiving country. A provider that is cheap to Mexico can be expensive to Nigeria.
- The amount. Fixed fees hurt small transfers; percentage markups hurt large ones. For large sums such as property or tuition, specialists like OFX focus on bigger transfers.
- How it is paid in. Paying by card is often more expensive than paying by bank transfer.
- How it is collected. Bank deposit, mobile wallet and cash pickup are priced differently. Western Union and WorldRemit are known for cash pickup and mobile money; Remitly focuses on sending money home to family.
- Speed and timing. Express delivery can cost more, and some apps add a markup when currency markets are closed at weekends. Revolut, for example, notes that some fees apply above plan limits and on weekends.
A simple way to compare providers
- Decide the exact amount, currencies and how the recipient will collect the money.
- Get a live quote from two or three services for that exact transfer. Include your own bank as a baseline.
- Write down the amount that arrives in each case, all at the same time of day.
- Pick the highest amount that arrives, then check speed, limits and that the provider is licensed in your country.
Providers that show the mid-market rate and an upfront fee, such as Wise, make this easy to check. For others, the calculator above will show the markup.
Want to see how two popular services stack up? Start with Wise vs Remitly, Wise vs Western Union or Wise vs Revolut, or browse all money transfer services.
Tools in this guide
Best for transfers to a bank account at the real exchange rate.
Best for sending money home to family.
Best for cash pickup almost anywhere.
Best for travellers and people who hold several currencies.
Best for transfers to mobile money and cash pickup.
Best for large transfers such as property or tuition.
Frequently asked questions
What is the mid-market exchange rate?
It is the midpoint between the buy and sell prices that banks and currency traders use with each other. It is the rate you see on Google or Reuters. Most providers give consumers a worse rate and keep the difference.
Is a zero-fee transfer free?
Not necessarily. A provider can charge no fee and still earn money by giving you a worse exchange rate. Compare the amount the recipient receives, not the fee.
What is the cheapest way to send money abroad?
There is no single cheapest provider: it depends on the countries, the currencies, the amount and how the money is collected. Get live quotes from two or three services for your exact transfer and compare the amount that arrives.
Sources
- World Bank, Remittance Prices Worldwide (latest global average)
- World Bank, Remittance Prices Worldwide Quarterly, Issue 53, Q1 2025 (PDF)
Published 25 October 2026, last checked 25 October 2026. Rules, prices and availability change; confirm with the provider or an adviser before you act. NxtGenFin is an independent directory, not affiliated with the companies named unless marked as featured, sponsored or affiliate link. Not financial, tax or legal advice.