Transfering Money to Overseas - What's The Best Method with Regards to Fees and Conversion Rates?

LLizard Spock on 11/10/2020 - 18:13

I am needing to transfer a large amount of money (>$50,000) back to my uncle in Sweden (SEK). I was going to just use CommBank to do the transfer when I noticed that their conversion rate is very poor. I did a quick search of Western Union and noticed that they had a better conversion rate. I have never transferred overseas before and I thought I'd ask the OzBargain community for some advice.

Are there any catches to using Western Union? Is there another method someone can recommend that is better?

Thanks in advance.

Regards

Lizard Spock

Financial Money Transfer

Comments

  • justdigi on 11/10/2020 - 18:16
    +3

    OFX - SEK 312,390 vs CBA’s SEK 300,887 for AUD$50k

    • justdigi on 11/10/2020 - 18:24
      +4

      Revolut gets SEK 316,314. Pretty much anywhere else is better than CommBank.

      • Lizard Spock on 11/10/2020 - 18:33

        It seems like it. I can't believe I was about to use CommBank

        • reactor-au on 12/10/2020 - 16:50
          +1

          Not just combank, ANY bank.

  • cpho on 11/10/2020 - 18:20
    +21

    I use Transferwise to send money. For the country I send funds to, it's the most cost effective when taking into account fees and currency conversion. If you have a look around the referrals page, I think you can get your first transaction's fee reduced too.

    For reference, AUD 50 000 will get you SEK 316 350 through Transferwise.

    • netjock on 11/10/2020 - 18:22
      +4

      +1 on Transfer wise.

      You can also try xe.com they are pretty good also.

      • Rayman011 on 12/10/2020 - 09:49

        +1 Transferwise also. Just started using it this past week. No problem and low fee.

    • Lizard Spock on 11/10/2020 - 18:32
      +2

      Thank you so much. I hadn't heard of them. I will register with them

      • miles3719 on 12/10/2020 - 08:43
        +1

        I have used XE.com quite a lot, they are very good.

  • someone else on 11/10/2020 - 18:24
    +1

    You should check Transferwise and Worldfirst. I've used them in different circumstances, and I can recommend both.
    You can transfer directly from your bank, but fees are usually ridiculous. There is no SEK on Worldfirst website, but a message "WorldFirst offers 130 currencies. If you can’t find the currency you need please contact us"

    WU receiver gets 315645.80SEK
    Transferwise receiver gets 316,352.38

    According to the respective websites, AUD 50k right now.

    • someone else on 11/10/2020 - 18:36
      +2

      I've checked Worldfirst for you (logged in):

      Receiver gets SEK 315725.00 from AUD 50k.
      So, Transferwise still a bit better.

  • uncompressed on 11/10/2020 - 18:28
    +1

    Another vote for Transferwise.

  • bobbified on 11/10/2020 - 18:39
    +3

    I think $50K is the minimum threshold where you can ask the bank for a better exchange rate. Might be worth asking them for that.

    (But I suspect the rates at other non-banks are probably better than the banks "better" rate.)

    • capslock janitor on 14/12/2020 - 21:49

      I asked CBA she said theirs is fixed rate.

    • capslock janitor on 28/12/2020 - 20:03

      so i contacted TransFerwise said they don't offer discounts/fee reductions

  • Ocker on 11/10/2020 - 18:45
    +4

    A word of caution when doing comparison FX rates over the weekend.
    The forex markets and closed and any online service is going to provide a conservative FX rate given they need to wear the FX risk until full global markets open on Monday morning

  • ninjawarrior on 11/10/2020 - 19:27
    +4

    +1 for OFX and Transferwise.

    Just to note that even after getting the quotes from their websites, it is worth calling and asking them for a better rate. I do this with OFX and they have always shaved a little bit extra off their commission - well worth a few minutes on the phone.

    • capslock janitor on 14/12/2020 - 22:08

      Good tip, will try call with TW too..

      • capslock janitor on 30/12/2020 - 12:39

        contacted TransFerwise said they don't offer discounts/fee reductions

  • keo on 11/10/2020 - 19:44
    +1

    +1 for Transferwise. I compared with multiple companies and Transferwise always came out ahead. Also great to be able to hold foreign currency in different accounts so people can pay you in foreign currency also. A trick I found was that it locks an interest rate for at least a few minutes in the review screen. On turbulent trading days and for large amounts you can wait a few minutes and decide to go with the locked rate or a better rate if it has changed.

    • Lizard Spock on 11/10/2020 - 20:28

      Thanks so much. Do you know if I will be able to deposit directly into my uncle's bank account? (or does he need a transfer wise account too?)

      • kale chips suck on 11/10/2020 - 20:55
        +2

        Yes you can; the recipient doesn't need an account.

    • capslock janitor on 15/12/2020 - 10:49

      Doesn't TW also have something like "Send with guaranteed rate" & "Lock in rate later" options, haven't tried the latter yet

  • onetwothreefour on 11/10/2020 - 20:18
    +1

    Another vote for transfer wise, my wife transfers money twice a month from Japan to Aus.

    • Hirolol on 12/10/2020 - 10:57

      Did she have any trouble setting up?
      My wife tried to do aus to Japan but it didn’t work for some reason.

      • onetwothreefour on 12/10/2020 - 11:38

        She didn't need to ask me many questions so I would say no trouble setting it up.

        • Hirolol on 15/10/2020 - 19:12

          ok thanks

      • capslock janitor on 14/12/2020 - 22:50

        My wife tried to do aus to Japan but it didn’t work for some reason.

        what was the problem, faced error?

        • Hirolol on 17/12/2020 - 21:59

          Can’t remember exactly but maybe account details didn’t match.
          I triple checked and tried 2 times, she tried it 2 times.
          We just gave up in the end.

  • Lizard Spock on 11/10/2020 - 20:27

    Thanks to all of you for for all the information so far. For those who have used Transfer Wise, do you know if I will be able to send $90,000 in one go? (I have increased my bank's transfer limit to $100,000).

    • kale chips suck on 11/10/2020 - 20:58

      I'm going to say "probably". It's a lot for a new account to send, so that might flag a review or something.

      I'd contact their support, explain your situation, and ask if it's OK. They'll be able to give you concrete answers.

      I've had my account a few years and I've had no issues.

      • Lizard Spock on 11/10/2020 - 21:25
        +4

        Well I'll try tomorrow and see how it goes. I don't want to keep my long lost Nigerian uncle, George Agdgdgwngo, waiting :P

        • capslock janitor on 16/12/2020 - 16:34

          hi, it's CBA's "Pay to a BSB & account number" limit right?
          i see maximum of $20k in Netbank, wonder what happens if you try to send above limit..

          how do you "desposit" into TransferWise Balance? am so confused with their settings - is it instantaneous, or was it held for 24h like they usually do?

          • Lizard Spock on 16/12/2020 - 22:48
            +1

            @capslock janitor: I upped the daily transfer rate to $100,000. You can call CommBank to increase the max daily transfer amount.

        • capslock janitor on 16/12/2020 - 22:30

          curious when you type TW's BSB in commbank what bankname does it show?

          • Lizard Spock on 16/12/2020 - 22:49
            +1

            @capslock janitor: Checked my account:

            TransferWise BSB 802985
            account number ————————
            Cuscal Limited

            • capslock janitor on 16/12/2020 - 23:01
              +1

              @Lizard Spock: Yeah right! I entered the 802985 shown too shows "Cuscal" in commbank, but their app shows Bank name "Monoova" - so then I emailed thme to confirm and they just copied pasted the same deets that mention Monoova again wtf, i found when it comes to nitty gritty they give helpless answers

              • Lizard Spock on 17/12/2020 - 20:30

                @capslock janitor: 🤔 very peculiar

                • capslock janitor on 25/12/2020 - 15:13

                  @Lizard Spock: did CBA ask why to increase transfer/payment limit?

                  • Lizard Spock on 25/12/2020 - 15:41

                    @capslock janitor: No, they just warned me of the potential risks of increasing it and advised that I reduce it once I've done the transfer.

                    • capslock janitor on 25/12/2020 - 15:45

                      @Lizard Spock: true just now; when they asked me i just said to move it elsehere another Oz bank for now lol.
                      the first time 24h holds/delay and having to contact them for every larger amount is great for security but bit annoying for flexibility.

    • cashless on 12/10/2020 - 14:17

      Yes.
      A transfer of AU$400k went through last year during the transfer of a deceased estate in my family

    • OZB Al on 12/10/2020 - 21:32

      Yes, but for big transfers they ask for some sort of documentation as to how you got the money.

  • Lizard Spock on 11/10/2020 - 23:27
    +1

    Thanks again to everyone's contribution, and to those who sent private messages about their experiences with transfer wise.

  • negger on 12/10/2020 - 00:17

    Western Union looked cheaper than anything else few months ago. I don't transfer money overseas frequently but worth a look

  • kiitos on 12/10/2020 - 07:34

    With these services, I guess the recipient needs an account with them too, is that how it works?

    • capslock janitor on 16/12/2020 - 16:30

      majority of them don't require an account, it can route into their Bank acc

  • Msfrugal on 12/10/2020 - 08:02
    +1

    TransferWise. I believe you can as can have a bank account in many countries.
    I think you can set up Swedish account in your own name and Transfer your money into that and then transfer directly from there to any other Swedish account,
    Or of course just get your uncles bank details and transfer. With a higher amount you get better rate.

    BANKS and WUnion won’t give you anywhere near as good a rate.
    Best of luck.

  • double_J on 12/10/2020 - 08:30
    +2

    I've used TransferWise and Skrill. Get a referral code to open your account.

    For TransferWise with referral invitation, your 1st transfer fee would be waived.

    For Skrill with referral invitation, both of referral & referee get $40 to be used in the transfer, no transfer fee.

    I found both have competitive rates.

    PM if you need my referral link. :)

  • OzHunterNSW on 12/10/2020 - 09:45
    -2

    All rates are relatively poor. Look at transferring via PayPal. Less hassle and the other party can choose to keep in PP or transfer into their bank.

    • RedHab on 12/10/2020 - 10:16
      +3

      Not in my experience. PayPal gives you bad exchange rates, 3.5% worse than spot.

    • BuyOrNot on 12/10/2020 - 10:23
      +1

      Paypal exchange rates are very bad compared transferwise and even Western Union.

    • cashless on 12/10/2020 - 14:19
      +1

      Using PayPal for Fx is the worst advice you can give someone

  • BuyOrNot on 12/10/2020 - 10:24
    +2

    Transferwise and also check Western Union, sometimes Western Union rates are better than transferwise.

  • grips on 12/10/2020 - 10:25

    Check mozo.com.au for a compare.
    I have used Transferwise, Torfx, Worldremit, Worldfirst, Currencyfair and Ozforex to transfer money between Europe and Australia, never had a problem.

  • ilikeradiohead on 12/10/2020 - 10:42

    +1 on Transferwise. I've been sending a few Ks from AUS to USA every few months for the past 2 years and it has always had the best overall rate for when I sent money (x checked OFX and a handful of others that weren't even close).

    • capslock janitor on 28/12/2020 - 01:43

      yeha i found TW better than OFX for USD

  • Hirolol on 12/10/2020 - 10:54

    Does anyone know one that can be used in Japan?
    Tried transferwise but it didn’t work.

    • double_J on 12/10/2020 - 11:28

      Never tried myself, but from the TransferWise app, I can see the JPY currency, so it should be available?

  • cashless on 12/10/2020 - 14:13
    +1

    Transferwise

  • cicada001 on 12/10/2020 - 19:18
    +1

    Also have a look at https://www.ofx.com/en-au/

    I had to move over 100k of English pounds to Australia recently and ofx were lower commission than Transferwise. I asked TW to match and they told me to use ofx

    • Lizard Spock on 12/10/2020 - 19:33

      Unfortunately of doesn't have SEK (Swedish Krona)

  • ECE on 12/10/2020 - 19:24
    +1

    Transferwise

    • Lizard Spock on 12/10/2020 - 19:31

      Yeah, that's the one I will use tonight

  • Lizard Spock on 12/10/2020 - 23:33
    +2

    Done. I ended up using TransferWise. The pain in the butt was CommBank blocking me from transferring the money to TravelWise, and then stopping me from logging in until I called them (I guess in a way they are protecting me and themselves from large unauthorised transactions).
    Thanks again everyone.

    Thread Closed….

    • Hirolol on 17/10/2020 - 01:52

      so it was that easy?

      my wife tried to send funds from japan to aus banks using transferwise but it would not work, we tried so many times but failed.

      • Lizard Spock on 17/10/2020 - 08:33

        If was very easy. Maybe Japan has strict transfer laws?

  • mrkrazy on 13/10/2020 - 10:25
    +1

    Thanks Lizard - I was looking for something similar to Norway and it seems TransferWise is the best option. Has anyone had any experience with the TransferWise borderless account? Would this be cheaper than just transferring directly?

    Also, I was looking to see if there are any international banks in both countries, as that might also be cheaper, but can't seem to find any…

  • Rafaelito on 20/10/2020 - 17:29

    Usually transferwise is the way to go, but I would recommend sending at least 100 AUD through the app Skrill which will give you $40 off using a promo code. That means you're gonna pay 60 to send 100 in a one time transfer, for a better rate than Commonwealth bank. If anyone is interested, just send me a msg.

  • capslock janitor on 04/12/2020 - 14:41

    Hi, just found yo post, pretty good details.

    Similarly I'm trying to send >AU $50K - to Cambodia (USD)
    (might close my other thread dk yet, may have better exposure here)

    [edited out]

    EDIT - um sorry on second thought it's easier to Edit on my original post ..
    so if you'd like to help me plz go above.

    • Lizard Spock on 04/12/2020 - 19:15
      +1

      All good. The general consensus was that transferwise was the best (for Swedish currency anyway). Keep yours open

      • capslock janitor on 14/12/2020 - 21:49

        Hi did yours go thru an intermediary bank?

        • Lizard Spock on 14/12/2020 - 21:59

          I just transferred from CommBank straight to TransferWise via a BSB and account number (or it may have been a BPay account). Then they transferred to my uncle's account

          • capslock janitor on 14/12/2020 - 22:08

            @Lizard Spock: So your Recipient amount was exactly what your uncle received..no less?

            I did not transfer mine by BSB to TW balance; I just went thru the Send-Money steps and at the end of prompted me to transfer funds to the TW PayID email, pretty much instantly processed too.

            • Lizard Spock on 15/12/2020 - 13:13

              @capslock janitor: 569,321.68 SEK is on its way to _________. The money should be in the bank account by tomorrow, October 14.

              The AUD to SEK rate was 6.35624. The fee was 431.06 AUD.

              I'm pretty sure the fee was deducted from his total amount. Does that answer your question? I'm trying to find the PDF of the receipt from transferwise

  • onceupon8 on 30/12/2020 - 08:49

    Many people in this thread have recommended Transferwise. I also use them regularly and recommend them. And a reminder that you can get your first transfer free if you sign up using a referral link. You can get a referral link by going to the Transferwise page on ozbargain and clicking on random under the referral links section.

    • Lizard Spock on 30/12/2020 - 08:58
      +1

      first transfer free

      Depends on your transfer amount

  • Lizard Spock on 25/02/2021 - 08:34

    TransferWise is now known as Wise.

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