Transferwise – review of the best service for sending money abroad safely and almost for free
There was a time when international money transfers were outrageously expensive, but rules changed once Transferwise joined the game. This British start-up was founded in early 2011 by people who built Skype and PayPal. They came up with simple and innovative idea to transfer money between people rather than countries. As a result they were in position to offer great service for incredible 0.35% + 80p fee and without any hidden fee. You can say farewell to banks since they probably will be no longer competitive in this business. Intrigued? Continue reading and learn everything about this service at Transferwise review.
How much you save sending 1000 GBP to EUR?
Here is a quick comparison of how much you can get when sending money using various providers. Please note that data is static and has been collected on 22.11.2017 with the effective mid market (real) exchange rate 1.1266
|Provider||Fee||Exchange rate||Amount recieved|
|4.29 GBP||1.1264||1121.57 EUR|
|10.00 GBP||1.1011||1090.09 EUR|
|26.15 GBP||1.102||1073.19 EUR|
|24.99 GBP||1.0928||1065.49 EUR|
How much does it cost to make a payment?
It costs very little comparing to regular bank transfers. There is a quick review:
- Real mid-market rate without any extra commission is used for currency exchange
- Each payment will cost you just 0.35% of the amount you send + fixed 80p fee
- There is no any minimal fee
The same principle applies to currencies other than GBP and EUR. However fees can be different for certain less popular currency pairs, but you can always get instant quote.
For example, Alex transfers £1,000 to his friend Francisco who lives in Spain. Assuming that current mid-market exchange rate for GBP/EUR pair is 1.1266, Francisco would receive €1121.76. How I got this number? The fee in this case is £4.30 (0.35% + 80p) and the rest £995.7 gets multiplied by 1.1266. That simple and transparent. Moreover he would probably get his money same or the next day!
And even more. Ask your bank or local currency exchange office how much euros will they give you for £995.7 in cash and compare with €1121.76. For sure they will give you less money as they have their wage in the exchange rate. So the actual fee for your pocket will be even less than £4.30 in this case, keep this in mind.
Can I trust my money to Transferwise?
Security is paramount when it comes to money transfers. Transferwise is certified money service company founded in January 2011 in the UK. They have already earned reputation of reliable and honest financial service. There are thousands of people who trust them and using their services on the regular basis. You can find many positive Transferwise reviews and feedback online. Ask your friends and you would probably find someone who already sends money using Transferwise.
How does it work?
International transfers are expensive but what if there were a way to avoid them? There are many people who have similar needs:
- Frontier workers need to send salaries to the country they live
- Expats may want to send money home
- People may need to pay someone (individual or company) who resides in another country
If we would take them together we would figure out that their needs could be satisfied without actually sending money abroad. Money can be just exchanged between them. This requires a lot of cooperation and Transferwise is the one who takes the role of coordinator. It’s easier to explain it by example:
Michael lives in Spain and owns a flat in London. He still pays to the bank £700 each month for the mortgage. Jane lives in Manchester and plans her holidays in south France. She found amazing chalet available for rent but property owner asked to pay €785 in advance. Let’s assume GBP to EUR rate is 1.1266 so £700 and €785 are equal. In order to achieve their goals we can send Jane’s money to Michael’s bank and Michael’s money to the chalet owner in France. Euro transfers between the EU counties are for free. Same time local transfers in the UK costs nothing. We did it spending no money at all!
My experience using Transferwise
I’m a frontier worker who lives in Spain and crosses Gibraltarian border every day. The vast majority of expats who work in Gibraltar do the same as the cost of living in Spain is much cheaper. As a result, I receive my salary in pounds to my NatWest bank account in Gibraltar, but I need Euros for everyday expenses. That was a problem when I arrived here. I went to NatWest bank and asked if they can help me with sending my salary to a Spanish bank account in Euros. They said yes, but with an enormous fixed fee and at a very bad exchange rate. I walked away and found the best currency exchange office in the town. I used to go there once or twice a month with a wallet filled with cash to buy Euros. Then I carried Euros through the border and deposited to my Spanish bank account. That was time consuming, inconvenient and not really safe.
Then one of my colleagues recommended me Transferwise. Since then I became a rare visitor of my favourite exchange office. Now I do everything through the Internet and get my salary delivered to my Spanish bank account normally same day. Moreover, because I send relatively big amounts of money I get even better deals than any of local currency exchange offices can offer! Later I decided to share my personal experience and created this Transferwise review website.
Most of my colleagues do the same and are very happy. Some of them are paying rent using Transferwise and find it very convenient.