How International Money Transfers Work
Understanding fees, exchange rates, and how to find the cheapest way to send money abroad.
The Two Costs You Always Pay
Every international money transfer has two costs — but most providers only show you one.
Transfer Fee
The upfront fee shown at checkout. Can be a flat amount ($3.99) or a percentage (1.5% of amount). This is the visible cost.
FX Margin (The Hidden Cost)
The difference between the real exchange rate and the rate you're given. A 2% margin on $500 costs you $10 — invisibly. This is where most providers make their money.
The formula: Total cost = Transfer fee + (Amount × FX margin %). SendMoneySmart uses this exact formula to rank providers — so you always see the real cost.
What Is the Mid-Market Rate?
The mid-market rate is the "real" exchange rate — the midpoint between the buy and sell price for a currency pair. It's the rate you see on Google, XE.com, or Bloomberg.
Wise is the only major provider that passes this rate directly to customers with no margin. Every other provider adds a margin of 1–3% above the mid-market rate — which means you receive less.
On a $500 CAD transfer to India, a 2.5% FX margin (like Western Union's) costs you approximately $12.50 CAD in hidden fees — on top of any visible transfer fee.
How to Use SendMoneySmart
Pick your corridor
Select the country you're sending from and the country receiving the money. Each corridor has its own comparison page.
Enter your amount
Type in how much you want to send. The calculator instantly ranks all providers by true total cost — cheapest first.
Compare the real costs
See exactly how much your recipient will receive from each provider, including the hidden FX margin, not just the transfer fee.
Click and send
Click through to your chosen provider. We may earn an affiliate commission — at no extra cost to you.
Frequently Asked Questions
What is an FX margin and why does it matter?
An FX margin is the difference between the mid-market exchange rate (the real rate you see on Google) and the rate a provider gives you. A 2% FX margin on a $500 transfer costs you $10 in hidden fees — even if the advertised transfer fee is zero. Always check the total cost including the FX margin.
What is the mid-market exchange rate?
The mid-market rate is the midpoint between buy and sell prices for a currency pair. It is the rate you see on Google or XE.com. It is the most fair rate. Wise passes this rate directly to customers. Most other providers add a margin of 1–3% above it.
Why is the total cost different from the transfer fee?
Providers make money in two ways: a transfer fee (shown upfront) and an FX margin (hidden in the exchange rate). A provider with a $0 transfer fee can still be more expensive than Wise if they apply a 3% FX margin. Total cost = transfer fee + FX loss.
How long does an international money transfer take?
Transfer times vary by provider and method. Bank-to-bank transfers via Wise typically take 1–2 business days. Remitly and Western Union offer express delivery in minutes for cash pickup or debit card-funded transfers. SWIFT bank transfers can take 3–5 business days.
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