Cheapest Way to Transfer Money from Australia Abroad

Australia's demand for international money transfers continues to grow, driven by a tech-savvy population with ever-growing global connections. 

Yet, finding the most affordable way to transfer money overseas can be challenging. 

While the major banks dominate the market, their high fees and uncompetitive rates have led many to seek alternative providers offering better deals.

In this guide, we’ll walk you through the key fees to consider when looking to send money from Australia for cheap.

We’ll then explain the cheapest options you have at your disposal, depending on how much you’re looking to send.

There are two main types of fees associated with sending money abroad: international wire transfer fees and the exchange rate markup.

Understanding when and where these costs apply empowers you to calculate for yourself who offers the cheapest option for any upcoming international transfer.

Alternatively, you can use our free tool to compare exchange rates and fees. Just select the currencies involved and input the size of your transfer.

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Banks typically impose fixed fees for overseas transfers, which vary depending on the transfer amount, currency conversion, and the method used (e.g. online, in-branch, or via phone). 

Some digital banks, like Revolut, charge percentage-based fees that increase with the transfer amount. Always compare these costs to avoid unexpected expenses.

Most providers add a markup to the interbank exchange rate, referred to as the FX spread.

Unlike fixed fees, these costs are less transparent, requiring customers to calculate the difference between the provider’s rate and the interbank rate.

Even "zero-fee" transfers may come with a high FX spread, making it critical to evaluate both components.

More and more providers are now offering "zero wire fees" on international transfers. It's easy for customers to compare company A's $30 international wire fee with company B's $0 wire fees and choose company B, assuming it's the cheaper option.

However, comparing wire fees only tells a small part of the story.

This is why we delve into the details at MoneyTransfer.com.au, so you have the confidence to determine for yourself the best provider for your needs.

Lowest transfer fees doesn’t = the cheapest international money transfer

Whether or not they charge a wire fee, both banks and money transfer providers often make most of their profit from the FX markup.

Although Australian legislation requires institutions to publicly display their currency exchange rates, it’s still not straightforward for customers to calculate the true cost of sending money overseas.

To accurately compare providers, you’ll need to calculate the FX spread (the difference between the interbank rate and the provider’s rate), determine the cost of this spread based on your transfer amount, and then add any fixed wire fees.

 Here’s an example of how this works for a $10,000 AUD to USD transfer.

Although Company B boasts lower wire fees, Company A’s lower FX markup results in a cheaper overall cost.

Some of the best money transfer providers will offer zero transfers but always consider the overall cost.

Don’t get drawn into an impulse decision based purely on the advertised fees.

Despite remaining the most popular method for transferring money internationally, our research consistently shows that using your bank is one of the most expensive ways to complete an international transfer.

Australian banks, while convenient, apply high FX markups (2.5–5%) and additional fees.

For example, as of 5 December 2024, a $10,000 AUD transfer to USD via Commbank saw you receive an exchange rate of 0.6175 when the actual exchange rate was 0.6438.

That’s $6,175 USD on the other end of your transfer, compared to $6,438. You’ve just lost out on $263 USD.

Make the transfer in-branch and you’ll also have to pay an additional $30 AUD.

While many of Australia’s major banks have recently waived wire fees for online transfers, their wide FX spreads remain unchanged.

To use a credit card for an international transaction, the recipient must be able to accept card payments.

While you won’t be able to wire money directly to a foreign bank account, credit cards can be useful when purchasing goods or services from overseas, provided the seller allows payment by card.

When using a credit card internationally, there are two main types of fees to consider:

• Foreign Transaction Fee
  This fee applies whenever you make a purchase in a foreign currency or from an overseas merchant. The standard fee is around 3%, though some cards may charge more or less.

• Foreign Exchange Markup
  Similar to a bank transfer, this fee reflects the difference between the exchange rate your card provider offers and the real interbank rate. If your provider uses the Visa or Mastercard rate, the markup is typically minimal, ranging from 0.1% to 0.5%. However, some providers add their own markup, which could drive the cost up to 5%.

In rare cases, credit cards with no foreign transaction fees and access to Visa or Mastercard exchange rates can offer a cost-effective way to make overseas purchases.

That said, as demonstrated in the table above, credit cards generally fall into the same category as banks — one of the most expensive options for transferring money internationally. 

Unless you qualify for a fee-free card with no added markup (there are cards out there), other methods will likely save you more in the long run.

Is crypto a cheaper alternative?

While cryptocurrency has emerged as an intriguing addition to the fintech landscape, exchange rate markup fees in the crypto-to-bank domain often fall within a similar range to those of banks and credit cards. 

For example, Australian-based crypto-to-bank provider RelayPay charges approximately 3.2% for a £10,000 Bitcoin-to-GBP bank transfer.

Alternatively, you might consider crypto-to-crypto payments. However, fixed fees from leading crypto platforms usually begin from around 2%, making this option just as costly in most cases.

If you’re looking for a significantly cheaper way to send money abroad, dedicated money transfer providers are the ideal solution. 

That’s companies like Xe, TorFX, OFX, and Wise.

These firms are designed specifically to outperform banks, offering highly competitive exchange rates and either low or zero fees. The result? A much lower total cost, making them by far the cheapest way to transfer money internationally.

Australia, despite its relatively small population of 25 million, has become a global hub for international money transfer services, second only to the UK. 

This prominence is driven by the country’s dynamic economy, which includes over 5 million small businesses, a thriving expat community, and a large number of Australian businesses engaged in international trade.

For Australians, this is great news. The abundance of providers fosters fierce competition, which translates to better exchange rates and lower costs for customers.

While cost is undoubtedly a major priority, you might be wondering if lower prices come at the expense of service quality.

This concern isn’t entirely unfounded. Some of the most affordable providers, like Wise, keep costs low by foregoing features like personalised currency dealer support. 

While this may not be an issue for smaller transfers, it’s definitely something to be aware of when you’re sending more than $20,000 AUD.

When this is the case, we recommend exploring the industry’s leading currency brokers—often the top choice for both affordability and excellent service. 

Among these, TorFX stands out for its competitive, bank-beating exchange rates, zero-fee transfers, and first-class customer support, offering the best of both worlds.

Our research and rate comparison tool indicates that TorFX offers spreads of 0.32% on higher value, major currencies.

Scanning online reviews, clients also report savings of 2% to 4% compared to bank exchange rates. 

In addition to low spreads, TorFX provides a dedicated account manager based in Australia, ensuring that your transfers are handled safely and at the most opportune times.

For detailed results on a specific transfer amount, check out our rate comparison tool.

Generally, total savings will depend on two key factors: the currencies involved and the transfer volume. 

To put this into perspective, here are two examples at opposite ends of the spectrum: