The two prices in every transfer
When you send money to another currency, you're paying twice: once as an explicit transfer fee, and once inside the exchange rate itself. The second one is easy to miss because it doesn't show up as a line item — it's the gap between the rate you're offered and the mid-market rate (the real, midpoint rate banks trade at with each other, the same one you'd see on Google or Reuters).
A provider advertising "no transfer fees" can still make most of its margin by quietly marking up the exchange rate by 2–4%. On a $2,000 transfer, that's $40–80 you'd never see itemized. This is why comparing two providers by fee alone, without checking the rate each one actually applies, tells you very little.
Bank transfers vs. specialist transfer services
Traditional banks and specialist transfer services (sometimes called "money transfer operators") solve the same problem differently:
- Banks tend to offer convenience (you already have an account) but typically apply a wider exchange-rate margin, and international wires can take 2–5 business days.
- Specialist transfer services generally operate on thinner margins closer to the mid-market rate, publish their fees upfront, and often settle transfers same-day or next-day — but you need to set up a separate account.
Neither is universally cheaper. A bank can make sense for a one-off, large, low-frequency transfer where you value having everything in one place; a specialist service tends to win for recurring transfers (rent, payroll, family support) where the exchange-rate margin compounds over time.
How much does your provider's margin actually cost you?
"Total margin" combines the exchange-rate markup and any stated fee into one percentage, so you're comparing the full cost, not just the advertised fee line.
What to check before you choose a provider
- The exchange rate offered at the moment of transfer, compared against the live mid-market rate
- Any fixed fee, and whether it changes based on payment method (bank transfer vs. card, which is usually more expensive)
- Estimated delivery time for your specific currency corridor — this varies a lot by country pair
- Transfer limits, especially if you're sending a larger, one-off amount
- Whether the provider is regulated as a payment institution in the country it operates from
What Wise does differently
Specialist transfer services such as Wise are built specifically around using the mid-market rate with no added markup, charging a separate, published fee instead — a small percentage of the transfer amount plus a small fixed fee, varying by currency route. For people who send money abroad regularly — rent, family support, freelance income in a foreign currency — that transparency makes it easier to actually compare the real cost against a bank.
Try Wise
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Frequently asked questions
Is the cheapest provider always the best one?
Not necessarily. For small, infrequent transfers, delivery speed or ease of use might matter more than saving a few dollars on the exchange margin. For large or recurring transfers, the margin matters a lot more, since it scales with the amount sent.
Why do exchange rates change between quote and delivery?
Currency markets move continuously. Most providers lock in the rate the moment you confirm the transfer, but some don't guarantee it until funds are received — check which applies if you're transferring on a particularly volatile day.
Do I need to verify my identity to send money internationally?
Yes, in almost all cases. Regulated transfer providers are required to run identity verification (KYC) checks, similar to opening a bank account, particularly above certain transfer thresholds.