If you have ever had to transfer money internationally, you may have noticed that services like PayPal, bank wire transfers, or WesternUnion will rape you in the form of fees hidden in a bad exchange rate. Well, TransferWise is different and they are very transparent about their fees. I tested the service and found the following statement to be true:
TransferWise uses the real exchange rate – the real mid-point between buy and sell rates on the global currency markets. It’s the rate you find on websites like Xe.com and Reuters.com.
While they don’t support all currencies, they support 15 major currencies and you can make transfers between any currency pair:
- Australian Dollar
- British Pound
- Bulgarian Lev
- Canadian Dollar
- Danish Krone
- Swiss Franc
- Hungarian Forint
- Japanese Yen
- New Zealand Dollar
- Norwegian Krone
- Polish Zloty
- Romanian Leu
- Swedish Krona
- United States Dollar
In my experience, the fees range mostly between 0.5% and 1%. For example:
- US Dollars to Euros or British Pound: 1%, minimum fee $3, reduced to 0.7% above $5,000
- British Pound to US Dollars or Euros: 0.5%, minimum fee £2
These are the lowest fees by far of any of the other services out there!
I also did a couple of test transfers from the US to Europe and the money arrived within a couple of business days exactly as promised. They will display the exact amount the recipient will receive before you submit the transfer request.