The 10 Best Online Money Transfer Companies

A money transfer firm is a means for one person or company to transfer cash to another individual or firm. Transfers can be made over the phone, in person at a bank, online, or through money order services, and they may be used for international payments or domestic transfers.

Typically, the money transfer firm acts as a broker, receiving funds from the originator and then sending them to the recipient. For international transfers, the money transfer company will change it into the correct currency before depositing it. Some of the money transfer companies take Visa credit card payments, while others require a bank account linked to the transaction.

All money transfer firms should be regulated in the United States, which is the remit of the FCEN (Financial Crimes Enforcement Network). To keep funds safe and secure, each member must follow rules and conditions to maintain regulatory compliance. In most cases, a money transfer service is faster, cheaper, and more efficient than a bank when it comes to sending money across borders.

Factors To Consider When Choosing Online Money Transfer Companies

There are numerous money transfer companies to choose from, and the best one will be determined by a variety of criteria:

• Security Features Available: Transactions, especially those that are completed online, must be secure. Choosing a secure money transfer service offers you a peace of mind against cyber intrusions. Keep an eye out for SSL encryption, proprietary software from a third party like Norton, and whether the account supports card payments, that it adheres to PCI/DSS (Payment Card Industry Data Security Standards). Even if your business is using enterprise-level security, internet transactions may still be vulnerable to attacks.
• Fees: This is a crucial factor to consider. Fees for money transfer companies are levied in a variety of ways, and the most frequent include:
  1. Transfer fees – This covers the costs involved with completing the transfer, such as administrative fees. This is how the money transfer company makes money to ensure that it is accessible.
  2. Exchange Rate Margin – When you send money to a friend in another country, the exchange rate is what determines how much the receiver will get. Some of the money transfer companies usually charge a small margin on top of the offered exchange rate.
  3. Other fees – During certain situations, the receiver may be charged a fee to have the money transferred. Landing and SWIFT fees are two examples of this.
• Speed: When in need to move money fast, one of the most efficient methods is through a money transfer service that allows for almost immediate fund exchange; however, if you are prepared to wait for the transaction to finish, you may save money (and therefore spend less overall).
• Exchange Rate: This is the rate at which one currency may be transformed to another. The exchange rate is determined by trading patterns as well as banks, and this value determines the worth of your money when transferred.
• Countries Offered: Some foreign money transfer firms operate only in certain countries, so double-checking that the one you select is (and is lawfully) authorized and licensed in both your origin (initial) and destination (end) nations is critical. Finding the best service for a particular area should be a major consideration.

Importance Of Using Online Money Transfer Companies

• Money may be transferred at any time, and it can happen in minutes or days. It might even be done while sitting in one’s home or at the workplace.
• Money can be transferred straight to a bank account using the online banking function of the financial institution where the funds are kept.
• These online money transfer service apps or websites are simple to use and safe.
• Online money transfer companies provide you with the best exchange rate compared to any high street bank, because they are currency specialists.
• Customer care is available 24/7.
• These websites are designed with the greatest level of security for their clients’ financial information.
• Money transfer companies have a staff of specialists on hand to monitor the currency market and advise you when it’s best to remit.
• All transaction records will be saved if you create an account with the company.
• These companies do not charge any additional costs.
• For smaller transactions, online money transfer companies are more adaptable.
• Money transfer companies are ideal for large financial transfers.

Types Of Online Money Transfer Companies

1. Remittance Companies: These firms help people in one country, such as the U.S., send money back to family members in their native countries.
2. P2P Companies: These firms facilitate direct interactions between two individuals. The most frequent way in which this occurs is when one person sends money directly from their bank account to another person’s bank account via their cell phones or online.
3. Non-P2P Companies: Non-P2P transactions include international transfers between firms in different countries and extremely large interpersonal transfers. The amounts of money transferred in these trades are usually large, and they may attract the attention of financial and federal authorities.

Why Do Online Money Transfer Companies Charge Fees?

The reality is that money transfer firms must make a profit in order to continue operating, and those profits are derived from the markups or fees applied to each money transfer. That’s why you won’t (if ever) find a money transfer business that offers an exact mid-market exchange rate on any day, with no additional costs.

The exchange rate used to calculate your money transfer may be marked up by the service (such as XE, WorldRemit, and Remitly) or charged an additional fee when calculating your mid-market rate (such as Wise).

This is why we always advise against choosing lenders that claim to have “no costs” or “zero commissions” since these more often than not indicate the presence of undisclosed expenses.

The 10 Best Online Money Transfer Companies

1) Wise

Wise is more than simply a money transfer service. It also provides what is known as borderless banking, allowing users to receive money and move it between “wallets” which are separate wallets in various currencies.

You can use a Mastercard debit card from Wise to make withdrawals and purchases in any currency in the world.

• Sign-up Charge: Free
• Available: App/online
• Number of Currencies: More than 40
• Number of Countries: More than 50
• Minimum Transfer: There is no minimum
• Transfer Fee: Approximately 0.5%
• Exchange Rate Margin: There is no markup. Mid-market rates are usually set according to US exchange rates.
• Transfer Speed: It might take 3 to 5 days for the money to reach the receiver’s account.
• Best For: Digital nomads and international travelers.

2) Currencies Direct

Currencies Direct is a well and long-established firm that is recognized for exceptional customer care. It was founded in 1996 and has been operating since then.

The range of services provided by Currencies Direct extends well beyond money transfers, including business hedging. It has 500 or more currency experts on hand to assist and offer risk management solutions.

• Sign-up Charge: Free
• Available: App/online/phone
• Number of Currencies: More than 40
• Number of Countries: More than 120
• Minimum Transfer: 100 dollars or equivalent
• Transfer Fee: There are no transfer fees
• Exchange Rate Margin: The best rate available
• Transfer Speed: Takes 1 to 2 days
• Best For: Regular transfers and business users

3) TorFX

TorFX is a money transfer service that provides various options for transferring funds, including bank transfers, credit cards, and over the phone. It is one of the most reputable firms, thanks to its excellent ratings and outstanding credit score. A designated account manager assists you in obtaining a better rate, and it’s one of the most trustworthy companies due to its great reputation.

• Sign-up Charge: Free
• Available: App/online/phone
• Number of Currencies: More than 60
• Number of Countries: Global
• Minimum Transfer: 100 euros or equivalent
• Transfer Fee: Free
• Exchange Rate Margin: The interbank rate is always the closest to the actual exchange rate.
• Transfer Speed: At least within 2 days or same day
• Best For: Simple and hassle-free transfers between the major currencies.

4) XE

XE is a common choice among individuals seeking a smart method to move money, and with enterprise-grade security, XE is a safe option

You need a bank account to use this service, and you can’t use a card to finance the transaction; however, the 24/7 exceptional client service and account management are enticing enough.

• Sign-up Charge: Free
• Available: App/online/phone
• Number of Currencies: 139
• Number of Countries: 220
• Minimum Transfer: There is no minimum
• Transfer Fee: Free
• Exchange Rate margin: XE fees differ based on the amount you transfer and range from 0.5 percent to 2% of the current exchange rate; as a result, they lower the more you move.
• Transfer Speed: 2 to 4 days or same day depending on banks and currencies
• Best For: Transfers from the United States and Canada.

5) Xoom

Xoom is usually a PayPal firm, so it goes to the destination considerably faster than its rivals. You may use your credit or debit card to move money between accounts, and you can also make direct bank transfers using Xoom. In certain countries, you may use Xoom to top up a prepaid phone credit balance or pay bills.

The high exchange rate margins and transaction fees make this a more expensive alternative compared to some other money transfer services, but it is a quick method to send money across borders.

• Sign-up Charge: Free
• Available: App/online
• Number of Currencies: 35
• Number of Countries: 130
• Minimum Transfer: 10 dollars or equivalent
• Transfer Fee: $4.99 from a bank account and around 3% if funded via a debit or credit card.
• Exchange Rate Margin: 1% to 3% above mid-market rate.
• Transfer Speed: Almost immediately. In most situations, up to 3 to 5 days.
• Best For: Quick transfers

6) WorldRemit

WorldRemit accepts a wide range of payment options and methods to ensure that you get your money as quickly as possible. 

WorldRemit gives customers the choice of bank transfer, cash delivery, and even airtime top-up. Google Pay and Apple Pay are also available as payment options through WorldRemit.

• Sign-up Charge: Free
• Available: App/online
• Number of Currencies: 90
• Number of Countries: 150
• Minimum Transfer: 1 dollar
• Transfer Fee: Ranges between $3.99 and $24.99. This is dependent on the currency
• Exchange Rate Margin: 1% to 1.5%.
• Transfer Speed: It will take you an hour, but it might as well take three days.
• Best For: Those who require different alternatives for receiving and funding transfers.

7) Payoneer

Payoneer is popular among both businesses and freelancers, owing to its ease of use and flexibility. Payoneer is the money transfer system of choice for e-commerce enterprises like Google and Amazon, as well as other online stores.

Since you may request a payment from the account, it may be used to bill clients as well as receive and send payments (internationally and domestically). Because of the complicated fee structure, it isn’t as straightforward as other money transfer businesses, however with the majority of transactions finishing in under a minute, it is an efficient option.

• Sign-up Charge: Free
• Available: App/online
• Number of Currencies: 150
• Number of Countries: 220
• Minimum Transfer: 1 dollar
• Transfer Fee: Different costs for various services; anticipate paying between 1 and 3 percent.
• Exchange Rate Margin: 0.5% higher than the mid-market rate
• Transfer Speed: It’s almost instant
• Best For: Freelancers and businesses who need to receive money in several currencies.

8) OFX

OFX is a wonderful solution for people who need to send greater amounts, and it allows you to do so by using wire transfer or electronic bank transfer to fund it. It’s an Australian-based firm that has offices in several nations and receives high marks for customer service.

• Sign-up Charge: Free
• Available: App/online/phone
• Number of Currencies: 55
• Number of Countries: 155
• Minimum Transfer: 1,000 dollars
• Transfer Fee: It’s free.
• Exchange Rate Margin: Although the markup is less for larger transfers, it will most likely be around 1.5% higher than mid-market pricing.
• Transfer Speed: 1 to 5 days.
• Best For: Individuals who desire to work with exchange rates on a daily basis.

9) InstaReM

InstaReM is a firm that provides a simple, quick, and easy procedure for money transfers. Users may earn loyalty points through the app by making transfers.

Users of InstaReM may also utilize the platform’s mass-pay feature to send payments to numerous recipients in a variety of currencies.

• Sign-up Charge: Free
• Available: App/online
• Number of Currencies: More than 55
• Number of Countries: Global
• Minimum Transfer: 1 dollar
• Transfer Fee: Ranges between 0.25% to 1%
• Exchange Rate Margin: Market rates are actual
• Transfer Speed: 1 to 2 days.
• Best For: Freelancers and staff from other countries.

10) Remitly

Remitly is highly mobile-optimized, making it easy and simple to send money across borders. If the recipient is a member of the Remitly network, funds can be picked up at their local back; if necessary, cash may be sent to their home address.

With a money-back guarantee of 100%, there’s nothing to worry about if your cash doesn’t arrive on time when sending an international funds transfer.

• Sign-up Charge: Free
• Available: App/online
• Number of Currencies: 47
• Number of Countries: More than 49
• Minimum Transfer: 1 dollar or equivalent
• Transfer Fee: The economy cost varies depending on the quantity of funds being transferred, but transfers up to $500 are generally free. Express charges $6.99.
• Exchange Rate Margin: 1% to 2% higher than the mid-market rate
• Transfer Speed: 1 to 3 days for economy transfers. Express transfers usually arrive within seconds.
• Best For: Transferring money to developing countries.

Is A Card Necessary?

Most of the money transfer companies also provide accounts where a card may be used to withdraw and spend money in many currencies. Choose an account that includes your desired function if it is something that would be beneficial to you.

Are There Other Ways That I Can Send Money Abroad?

The most cost-effective approach to move money internationally is typically to use a money transfer service, such as the ones mentioned in this article. 

Another option is to make a direct transfer using your bank. This is a more user-friendly alternative for some because you don’t have to set up and verify another account, and you can send money straight from your bank account to the receiver.

However, keep in mind that this convenience comes at a cost. Banks generally charge a 4 to 5 percent premium on the exchange rate when compared to money transfer companies’ common 1% markup.

The Significance Of Comparing Online Money Transfer Companies

Money transfer companies are not all the same, and each one is unique according to the demands of its clients. Some are ideal for smaller transfers, while others are better for sending huge amounts of cash.

The speed and cost of transfer may differ widely, as well as the withdrawal and payment options accessible. Depending on where you’re sending the funds, what currency you’re using, how much you’re sending, and how you’re paying for the transaction, the finest company for your needs will change.

Bottom Line

Choosing the appropriate money transfer firm is a personal choice that must be determined based on your demands; however, if you can compare the essential characteristics, it should not be difficult. When sending money online, it’s vital to safeguard yourself. Make sure that the company you’re using is secure and also regulated in both the nation where you’re sending money from and the one where you’re sending it to.

The actual decision is a balance between cost, speed, and availability, in addition to the legal and safety issues. The ideal money transfer company for you is the one that provides good currency pair alternatives, quick exchange times, low fees, and acceptable margins.