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What is an international money transfer?
CANSTAR 2016 - Outstanding Value - International Money Transfers

An international money transfer is when you send money from your bank account in Australia to the bank account of someone in a different country. It’s commonly used by people who are sending money to their family, friends and others overseas.

To make an international money transfer, you will typically need to know the full name and address of the person you’d like to send money to, their bank account number or International Bank Account Number (IBAN), and the SWIFT or Bank Identification Code (BIC) of their bank.

How can you transfer money overseas?

There are a few different ways you can transfer money overseas. Common methods include using a money transfer company or doing a direct transfer from your bank account.

Money transfer companies

A money transfer company is one that specialises in moving funds overseas. Companies can operate online or in person and will allow you to transfer funds directly to a bank account. Some companies can also arrange for the person to collect the money at an overseas branch.

Money transfer companies can offer a speedy transfer at a competitive exchange rate, but it’s important to check the fees and terms and conditions with the individual provider.

Bank transfers

An international bank transfer involves moving funds directly from your bank account to an overseas account. Bank transfers can generally be done online (such as through your bank’s mobile app) or in person at a branch.

ASIC’s Moneysmart notes that banks can be a more expensive option than using a money transfer company. The exchange rate is generally less competitive and it can take up to five business days for the funds to go through.

How do Canstar’s International Money Transfers Awards work?

Canstar’s International Money Transfers Award recognises the providers that deliver outstanding value and top performing services that are available in Australia.

When comparing international money transfer providers, our experts look at factors such as:

  • Exchange rate – we rate providers on their exchange rates for USD, GBP, NZD, EUR and SGD
  • Fees – including direct transfer fees, fees for branch, online or phone transfers, and account fees
  • Features – including whether you can make branch, online or phone transfers, account loading options and the time it takes, whether money in your account is protected by the Australian Government’s Financial Claims Scheme, the currencies available, and customer service and support options.

About our finance experts

Nina Rinella, Editor-in-Chief

As Canstar’s Editor-in-Chief, Nina heads up a team of talented  journalists committed to helping empower consumers to take greater control of their finances. Previously Nina founded her own agency where she provided content and communications support to clients around Australia for eight years. She also spent four years as the PR Manager for American Express Australia, and has worked at a Brisbane communications agency where she supported dozens of clients, including Sunsuper and Suncorp.

Nina has ghostwritten dozens of opinion pieces for publications including The Australian and has been interviewed on finance topics by the Herald Sun and the Sydney Morning Herald. When she’s not dreaming up ways to put a fresh spin on finance, she’s taking her own advice by trying to pay her house off as quickly as possible and raising two money-savvy kids.

Nina has a Bachelor of Journalism and a Bachelor of Arts with a double major in English Literature from the University of Queensland. She’s also an experienced presenter, and has hosted numerous events and YouTube series.

You can follow her on Instagram or Twitter, or Canstar on Facebook.

You can also read more about Canstar’s editorial team and our robust fact-checking process.


Josh Sale, International Money Transfers Ratings Manager

Headshot of Josh Sale, CanstarAs Canstar’s Ratings Manager, Josh Sale is responsible for the methodology and delivery of Canstar’s International Money Transfers Star Ratings and Awards. With tertiary qualifications in economics and finance, Josh has worked behind the scenes for the last five years to develop Star Ratings and Awards that help connect consumers with the right product for them.

Josh is passionate about helping consumers get hands-on with their finances. Josh has been interviewed by media outlets such as the Australian Financial Reviewnews.com.au and Money Magazine.

You can follow Josh on LinkedIn, and Canstar on Twitter and Facebook.


International money transfer FAQs

1. What does an international money transfer cost?

The cost of an international money transfer depends on the provider. Two important factors to look at are the exchange rate and transfer fee. The exchange rate can vary significantly between providers, which may vary in the margins they add. According to Canstar’s researchers, the margin is generally the largest part of the overall cost of an international money transfer. This is compared to the transfer fee, which tends to be relatively small.

2. What is the cheapest way to transfer money internationally?

Financial regulator ASIC’s Moneysmart website notes that the cheapest way to transfer money internationally is generally through a money transfer company. This can be cheaper than a bank transfer, because money transfer companies generally offer more competitive exchange rates. That being said, you may still prefer to go with your bank out of convenience.

3. What is a BIC/SWIFT code?

BIC and SWIFT codes are used to identify banks and financial institutions internationally and are used when transferring money between banks. The terms are used interchangeably. BIC stands for Bank Identification Code, while SWIFT refers to the Society for Worldwide Interbank Financial Telecommunication. BIC and SWIFT codes are usually eight or 11 characters.

International money transfer providers

The following providers received an Outstanding Value Award in 2023 for their international money transfers:

  • CurrencyFair
  • Revolut
  • TorFX
  • Wise
  • XE

 

This content was reviewed by Deputy Editor Sean Callery and Sub-Editor Tom Letts as part of our fact-checking process.

Important information

For those that love the detail

This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you.

Canstar does not rate or compare every provider in the market and we may not compare all features relevant to you. Learn more about our International Money Transfers Methodology. Star Ratings are only one factor to take into account when considering products. Check current product details and investment options with the product issuer.

Any advice on this page is general and has not taken into account your objectives, financial situation or needs. Consider whether this general financial advice is right for your personal circumstances. You may need financial advice from a qualified adviser. Canstar is not providing a recommendation for your individual circumstances. It’s important you check product information directly with the provider. Consider the Product Disclosure Statement and Target Market Determination (TMD), before making a purchase decision. Contact the product issuer directly for a copy of the TMD. For more information, read our Detailed Disclosure.

What is a Target Market Determination?

A Target Market Determination (‘TMD’) is a document that explains which people particular financial products may be suitable for (the target market) and sets out any conditions around how financial products can be distributed to consumers.

Why do product issuers provide Target Market Determinations?

From 5 October 2021, TMDs are compulsory for most financial products.

Issuers and distributors of financial products must take reasonable steps that are likely to result in financial products reaching consumers in the target market defined by the product issuer.

We recommend that you consider the TMD before making a purchase decision. Contact the product issuer directly for a copy of the TMD.

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