Author, Mike Smith
Last Updated on August 15th, 2024
Even in 2024, using your bank to transfer money internationally is still likely to be the most expensive way you can choose.
Luckily, there are various services available that can help people make international transfers at a much lower cost and with better overall service.
In this article, I’ll cover all aspects, from what a money transfer company is, to our top money transfer company picks and things to consider to find the best one for you.
What is a Money Transfer Company? (how do they differ from a bank?)
A money transfer company helps people and businesses send money from one country to another. They convert your money and send it to your specified recipient’s bank account.
Money transfer companies are specialists in foreign currency exchange. Unlike your bank, they won’t have other financial services to provide for customers.
Transferring money internationally is a money transfer company’s only purpose.
Money transfer companies will charge different exchange rates and may add on transfer fees (some don’t). These two factors determine the price you pay to send your money internationally.
However, not all money transfer companies are the same.
Certain money transfer companies are more suited than others depending on how much and why you’re transferring money overseas.
What are the types of Money Transfer Companies? (be wary of comparison sites!)
Money transfer companies fall into the following different categories:
- Currency brokers
- Money transfer apps
- Money remittance companies
Many comparison sites that compare money transfer companies will provide a ‘Top 10’ list immediately.
However, what isn’t made clear, is that many of the companies they push only fall under one category or type of ‘money transfer company’.
A lot of the time, you can find disclaimers at the bottom of these lists, stating that the comparison site may earn commission from the companies they list.
This can be quite misleading for people, it leads to most not doing the best comparison or research possible.
Ultimately, you could be missing out on saving a lot of money.
You may now think: “Well, how do these transfer companies differ?”
Below, we’ve broken down our top money transfer companies by each type, to explain this further and provide better information.
Our Top Money Transfer Companies (in 2024)
Currency Brokers (Best Companies for Large International Money Transfers!)
| Rank | Company | Pros | Cons | TrustPilot Rating |
| 1 | Key Currency |
|
|
4.9/5 |
| 2 | OFX |
|
|
4.5/5 |
| 3 | Corpay |
|
|
4.4/5 |
| 4 | Currency Solutions |
|
|
4.2/5 |
Currency brokers are specialists in large international money transfers.
They are usually cheaper and offer better service than big banks.
As they operate at such large volumes, they’re able to get closer to the interbank exchange rate than other money transfer companies.
This is where you can save a lot of money.
Large international money transfers are likely to cost you far less with a currency broker than with a bank.
As well as being cheaper, many currency brokers can provide tailored guidance specific to your international transfer.
They can help explain the latest trends in the currency exchange market, whilst helping you navigate its daily ups and downs.
Most currency brokers have a minimum threshold for transfers and are better suited than any other money transfer company when it comes to larger amounts being sent abroad.
Money Transfer Apps (Best Companies for Small International Money Transfers!)
| Rank | Company | Pros | Cons | TrustPilot Rating |
| 1 | Wise |
|
|
4.2/5 |
| 2 | Revolut |
|
|
4.2/5 |
| 3 | Remitly |
|
|
4/5 |
| 4 | Ria |
|
|
4.4/5 |
Money transfer apps are the newest type of money transfer company.
You may also see them referred to as a ‘fintech’.
Some of the companies that come to the fore are PayPal, Revolut, Paysend, CurrencyFair, and Wise.
However, more names and apps are entering the market all the time.
Each is looking to put its spin on how to send money abroad.
Most money transfer apps essentially offer the same mobile-based service – just with a new fancy design.
If you find one you like, it can be really helpful for smaller transfers.
In the unfortunate event that something was to go wrong, sadly, the support is often non-existent.
If the worst were to happen, imagine being left with only a slick-looking interface.
No support, nobody to call, and no indication of where your money is.
The reviews for these money transfer apps often reflect this lack of support.
Even when things don’t go wrong, getting a simple bit of advice can be nigh on impossible.
So, when you need to transfer a significant amount of money, many prefer to deal with a real human being.
It pays to have someone who knows the precise situation of your transfer, and who can immediately tell you exactly when your money is at all times.
Money Remittance Companies (Best for Quick International Money Transfers!)
| Rank | Company | Pros | Cons | TrustPilot Rating |
| 1 | Western Union |
|
|
4/5 |
| 2 | Money Gram |
|
|
4.5/5 |
| 3 | World Remit |
|
|
3.9/5 |
| 4 | Small World |
|
|
4.3/5 |
Money remittance companies can handle cash and are the quickest way to send money internationally.
Cash transfers are quick because the funds don’t have to go through the banking system.
However, they’re also the most expensive of the types of money transfer companies.
They’re more expensive due to higher transfer fees and higher margins applied to the exchange rates.
Money remittance companies also have limits put in place, so they are not the best for large money transfers.
If you need to transfer less than £1,000 to someone in another country as quickly as possible, a money remittance company could be your best option.
So which money transfer company is the best? (quick summary)
The best money transfer company depends on your situation.
There is no one-size-fits-all, but below are the general guidelines you should follow.
For large international transfers, a currency broker is likely to be the best.
Currency brokers can typically offer better exchange rates than banks. There are no limits like remittance companies and they can offer better customer, and personal service than apps.
Money transfer apps can be ideal for smaller currency transfers (under £2,000).
For smaller transfers, speed and convenience are often more important than better exchange rates. This is where money transfer apps can be helpful.
If you have cash or need to the money to someone in another country extremely quickly, a money remittance company is your best option.
When comparing money transfer companies: Think about cost!
When it comes down to it, one of the biggest, and most important factors when finding the best money transfer company is the final cost.
However, just like misleading comparison sites, the costs aren’t always clearly shown.
The cost of an international money transfer is made up of transfer fees and exchange rate charges.
You will see the fixed transfer fees more on money transfer company websites, especially on money transfer apps.
They are usually low and to the standard customer, look quite appealing.
When comparing these low fixed fees with what a high-street bank will add on as a fee, it seems like a bargain.
The real cost of a money transfer overseas, though, comes with what a company will put on the exchange rate as a margin.
Comparing the margins of different companies is key, especially if you’re looking to send a large amount of money.
Unfortunately, as stated above, this margin isn’t shouted about by companies.
An exchange rate margin is the difference between a money transfer company’s rate and the current ‘mid-market’ rate. ‘Mid-market rates’ are what banks use when they transfer money internationally between one another. As a customer, these rates aren’t available. As an example, the current Pound to Euro exchange rate is 1.1694 (as of 26/02/2024). Money transfer company rates will be lower than this rate, examples can be seen below: The company offering the best/least margin on the exchange here would be Remitly, as their rate is closer to the mid-market rate.What is an exchange rate margin?
Ultimately, the more money you or your recipient receives at the end of the transfer when it’s all said and done, will be the indicator of which money transfer company is offering you the best deal.
So, when looking at various money transfer companies, it’s important to cover all bases by getting multiple customer quotes and comparing them.
Don’t use the low transfer fees advertised as your guide to who will be the cheapest or save you the most money.
How to make sure the company you use is safe
Use a company that is regulated by the Financial Conduct Authority.
The FCA assures that financial businesses abide by strict regulations to safeguard customers and their funds.
For money transfer companies and currency brokers, FCA regulations ensure that client funds are kept in safe and separate client accounts.
This gives peace of mind to customers if the worst were to happen and the company you choose comes into financial trouble, your money will not be affected.
Check if a company is FCA-regulated by searching for its name on the Financial Services Register.
As specialists in international money transfers, Key Currency can help support and guide you through any requirement you may have. You will be assigned to one of our expert brokers. They will be by your side throughout the whole process. Their job is to find you a great exchange rate at the right time, saving you money when transferring abroad. Most money transfer companies will not offer personalised services. You have to do most of the work yourself. This is where we shine, we monitor exchange rates and alert you when it is the best time to make your transfer. The team at Key Currency is only a call away at all times. With a 4.9/5 TrustPilot rating from thousands of happy customer reviews, we’re a transfer specialist you can rely on. We’re authorised and regulated by the FCA. This means that your money is always secure and kept in safeguarded accounts. If you’d like to see our latest rates for your international money transfer, then please speak with us and get a free quote below, today!Save Thousands on Large International Transfers with Key Currency