Looking for the cheapest way to send money internationally? For millions of immigrants living in the United States, sending money back home is a regular necessity—supporting families, paying bills, or building savings in their home country. The global remittance market exceeds $700 billion annually, and immigrants from the US alone send over $150 billion abroad each year.

Yet many people overpay on fees and exchange rates simply because they don’t know better options exist. This comprehensive guide compares the best money transfer services in 2025, helping you keep more of your hard-earned money while ensuring your loved ones receive funds quickly and safely.

Understanding International Money Transfer Fees & Hidden Costs

Before comparing online money transfer services, you need to understand how money transfer companies actually make money—because it’s not always obvious. The advertised “low fee” or “free transfer” often hides significant costs in the exchange rate. Learning to calculate the true cost of international transfers will save you hundreds or even thousands of dollars over time.

The Two Ways Money Transfer Services Charge You

Every international money transfer involves two potential costs:

• Upfront Transfer Fee: The flat fee or percentage charged for the transfer. This is usually displayed prominently—$5, $10, or “1.5% of transfer amount.”
• Exchange Rate Markup: The hidden cost. Companies offer you an exchange rate that’s worse than the “mid-market rate” (the real rate you see on Google or XE.com). This markup can be 1-5% or more, costing you far more than the upfront fee.

What is the Mid-Market Exchange Rate?

The mid-market rate (also called the “interbank rate” or “real exchange rate”) is the midpoint between the buy and sell prices of two currencies on the global market. It’s what banks use when trading with each other. When a service offers you a rate that’s different from this, they’re making money on the spread.

For example, if the mid-market rate for USD to INR is 83.00, but a service offers you 81.50, they’re keeping the difference—about 1.8% of your money.

Real-World Example: Sending $1,000 to India

Service	Fee	Rate Offered	Recipient Gets
Mid-Market (Ideal)	$0	83.00	₹83,000
Wise	$6.50	83.00	₹82,460
Remitly (Express)	$3.99	82.10	₹81,771
Western Union	$5.00	80.50	₹80,123
Bank Wire Transfer	$45.00	79.50	₹75,923

In this example, using a bank costs you over $70 more than Wise—that’s 7% of your transfer!

How to Calculate the True Cost of Any Money Transfer

Follow this simple formula to compare money transfer services accurately:

1. Check the mid-market rate on Google or XE.com
2. Calculate what your recipient would get at that rate: Amount × Mid-Market Rate
3. Calculate what they actually get with the service (after fees and their exchange rate)
4. The difference is your true cost
5. Divide by amount sent to get your percentage cost

Best Money Transfer Services Compared: 2025 Reviews

The international money transfer market has exploded with options in recent years. Here’s an in-depth look at the major players, their strengths, weaknesses, and best use cases to help you choose the right remittance service.

Wise (Formerly TransferWise) – Best Exchange Rates

Wise has revolutionized international money transfers by offering the mid-market exchange rate with transparent, low fees. Founded in 2011, they’ve built a reputation for honesty and competitive pricing. Their multi-currency account also lets you hold and manage money in 50+ currencies.

• Transfer Fees: 4% – 1.5% depending on currency corridor and payment method
• Exchange Rate: Mid-market rate (the real rate with no markup)
• Transfer Speed: 1-2 business days for most transfers; instant for some corridors
• Delivery Options: Bank deposit, debit card (select countries)
• Countries Supported: 80+ countries
• Best For: Regular senders who prioritize getting the best exchange rate
• Pros: Transparent pricing, excellent app, multi-currency account, debit card available
• Cons: No cash pickup option, slightly slower than competitors for urgent transfers

Remitly – Best for Fast Cash Pickup & Mobile Money

Remitly focuses on immigrant communities sending money to developing countries. They offer multiple delivery speeds and options including cash pickup, mobile money, and bank deposits. Their app is available in multiple languages and designed for ease of use.

• Transfer Fees: $0 – $3.99 for Express; free for Economy transfers
• Exchange Rate: Includes markup (varies by speed and destination)
• Transfer Speed: Minutes (Express) to 3-5 days (Economy)
• Delivery Options: Bank deposit, cash pickup, mobile money, home delivery (select countries)
• Countries Supported: 100+ countries, strong in Latin America, Asia, Africa
• Best For: Sending to developing countries, especially with cash pickup needs
• Pros: Multiple delivery options, fast transfers, promotional offers for new users
• Cons: Exchange rate markup can be significant on Express transfers

Xoom (PayPal) – Best for PayPal Users & Bill Payments

Xoom, owned by PayPal, offers the security of a trusted brand with extensive delivery options. If you already use PayPal, Xoom integrates seamlessly with your existing account and payment methods.

• Transfer Fees: $0 – $4.99 depending on payment method and destination
• Exchange Rate: Includes markup (typically 1-3%)
• Transfer Speed: Minutes to hours for most destinations
• Delivery Options: Bank deposit, cash pickup, mobile reload, home delivery
• Countries Supported: 130+ countries
• Best For: PayPal users, sending for bill payments or mobile top-ups
• Pros: PayPal integration, fast transfers, bill pay feature, mobile reload
• Cons: Exchange rates not as competitive as Wise

WorldRemit – Best for Mobile Money Transfers to Africa

WorldRemit excels in mobile money transfers, making it ideal for sending to countries where mobile wallets are more common than bank accounts. They support transfers to M-Pesa, MTN Mobile Money, and other popular services.

• Transfer Fees: $0.99 – $4.99 for most transfers
• Exchange Rate: Includes small markup
• Transfer Speed: Minutes for mobile money; 1-3 days for bank transfers
• Delivery Options: Mobile money, bank deposit, cash pickup, airtime top-up
• Countries Supported: 150+ countries, excellent African coverage
• Best For: Sending to Africa and countries with mobile money infrastructure
• Pros: Excellent mobile money support, wide country coverage, instant delivery
• Cons: Higher fees than Wise for bank-to-bank transfers

Western Union – Best for Cash Pickup in Remote Areas

Western Union is the oldest and most recognized name in money transfers, with over 500,000 agent locations worldwide. While not the cheapest option, their unmatched physical network makes them essential for cash pickup in remote areas.

• Transfer Fees: $5 – $25+ depending on amount, destination, and method
• Exchange Rate: Significant markup (often 2-4%)
• Transfer Speed: Minutes for cash pickup; 1-5 days for bank transfers
• Delivery Options: Cash pickup, bank deposit, mobile wallet, home delivery
• Countries Supported: 200+ countries, largest agent network
• Best For: Urgent cash pickup in remote areas, recipients without bank accounts
• Pros: Massive global network, cash pickup anywhere, trusted brand
• Cons: Expensive, poor exchange rates, fees vary unpredictably

MoneyGram – Best Alternative for In-Person Transfers

MoneyGram is Western Union’s main competitor in traditional money transfers, with a similar global agent network. They’ve modernized with app-based transfers and partnerships with Walmart for convenient in-person services.

• Transfer Fees: $1.99 – $20+ depending on method and destination
• Exchange Rate: Includes markup (similar to Western Union)
• Best For: Walmart customers, alternative to Western Union
• Pros: Walmart partnership, competitive with Western Union, modernized app
• Cons: Similar pricing issues as Western Union

Money Transfer Service Comparison Chart 2025

Service	Best Rate?	Speed	Cash Pickup	Mobile $	Countries
Wise	✓ Best	1-2 days	✗	✗	80+
Remitly	Good	Minutes	✓	✓	100+
Xoom	Fair	Minutes	✓	✓	130+
WorldRemit	Good	Minutes	✓	✓ Best	150+
Western Union	Poor	Minutes	✓ Best	✓	200+
MoneyGram	Poor	Minutes	✓	✓	200+

Best Money Transfer Services by Country: 2025 Recommendations

Different services excel for different destinations. Here are our top picks for the most popular remittance corridors from the USA:

Send Money to Mexico from USA

Mexico is the largest remittance destination from the US, receiving over $60 billion annually. Competition is fierce, meaning good deals are available.

• Best for Bank Deposit: Wise (best exchange rate) or Remitly (fastest)
• Best for Cash Pickup: Remitly or Xoom (extensive OXXO and Elektra locations)

Pro Tip: Many Mexican banks now support instant deposits from Wise and Remitly

Send Money to India from USA

India is the world’s largest remittance recipient. The USD to INR transfer corridor is highly competitive with excellent digital options.

• Best Overall: Wise (consistently best rates, direct to any Indian bank)
• Best for Speed: Remitly Express (minutes to major banks)

Pro Tip: UPI-linked accounts can receive instant transfers from several services

Send Money to Philippines from USA

The Philippines has a highly developed remittance infrastructure with multiple delivery options including e-wallets like GCash.

• Best for Bank/GCash: Remitly (instant to GCash) or Wise (best rates)
• Best for Cash Pickup: Western Union or Remitly (extensive pawnshop network)

Pro Tip: GCash transfers are often instant and free from Remitly

Send Money to Africa from USA

Africa’s mobile money revolution makes WorldRemit and Remitly excellent choices. M-Pesa dominates in East Africa.

• Best for Mobile Money: WorldRemit (M-Pesa, MTN, Airtel Money support)
• Best for Nigeria: Remitly or Wise (competitive NGN rates)
• Best for Cash Pickup: Western Union (widest network in rural areas)

Pro Tip: Mobile money transfers are often instant and avoid bank delays

Send Money to Latin America from USA

Beyond Mexico, Latin American countries have varied options. Some countries have currency controls affecting rates.

• Guatemala/El Salvador/Honduras: Remitly (strong network) or Xoom
• Colombia: Wise (excellent rates) or Remitly (Nequi wallet support)
• Brazil: Wise (PIX instant transfers) or Remitly

Pro Tip: Check if your recipient’s country has instant payment systems (PIX, Nequi) for faster delivery

When to Use Bank Wire Transfers Instead

Despite high fees, traditional bank wire transfers occasionally make sense for specific situations:

• Very large transfers: Amounts over $50,000 may require bank wires due to transfer limits on other services
• Business transactions: Some businesses only accept bank wires for payment
• Property purchases: Real estate transactions often require bank-to-bank transfers
• Documentation needs: When you need official bank records for legal or tax purposes

Bank Wire Costs to Expect:

• Sending bank fee: $25-$50
• Receiving bank fee: $15-$30 (deducted from transfer)
• Intermediary bank fee: $15-$25 (sometimes applies)
• Exchange rate markup: 2-4%

How to Save Money on International Transfers: Expert Tips

Small optimizations add up to significant savings over time. Here are proven strategies to minimize transfer costs and get the best exchange rates:

Choose the Right Payment Method

How you fund your transfer affects the total cost:

• Bank transfer/ACH: Usually cheapest, but takes 1-3 days to process
• Debit card: Instant but may add $1-$5 fee
• Credit card: Often treated as cash advance with fees and interest—avoid

Batch Your Transfers for Lower Fees

Sending $500 once costs less than sending $100 five times. Most services charge flat fees or percentage fees that favour larger amounts. If your family’s needs allow, send larger amounts less frequently. Just ensure the recipient can safely hold the money.

Set Up Exchange Rate Alerts

Exchange rates fluctuate daily. Services like Wise and XE allow you to set alerts when your desired rate is reached. If your transfer isn’t urgent, waiting for a better rate can save 1-2% on large transfers.

Take Advantage of New User Promotions

Most transfer services offer promotions for new users—free first transfer, zero fees up to a certain amount, or bonus amounts. Take advantage of these offers, but always compare the total cost including exchange rate. A “free” transfer with a bad rate may cost more than a paid transfer with a good rate.

Compare Rates Before Every Transfer

Rates and fees change constantly. What was the cheapest option last month may not be cheapest today. Use comparison tools like Monito, Exiap, or CompareRemit to check multiple services before each transfer. It takes two minutes and can save significant money.

How to Avoid Money Transfer Scams: Safety Guidelines

Money transfer scams specifically target immigrants. Protect yourself and your money with these guidelines:

1. Never send money to strangers: Legitimate businesses, government agencies, and employers will never ask you to wire money
2. Verify recipient identity: Confirm you’re sending to the right person, especially for new recipients
3. Be wary of urgency: Scammers create false emergencies; legitimate needs allow time to verify
4. Use official apps only: Download transfer apps from official app stores, not links
5. Keep records: Save confirmation numbers and receipts for every transfer
6. Report suspicious activity: Contact the service immediately if anything seems wrong

Conclusion: Start Saving on International Money Transfers Today

Sending money home is an act of love and responsibility—you shouldn’t lose a significant portion to fees and unfair exchange rates. By understanding true transfer costs, comparing services for each transfer, and using the strategies outlined in this guide, you can save hundreds or thousands of dollars annually.

For most people sending money regularly, Wise offers the best combination of rates and reliability. For those needing cash pickup or mobile money options, Remitly and WorldRemit provide excellent alternatives. Traditional services like Western Union still have their place for urgent cash pickups in remote areas, but should be a last resort for cost-conscious senders.

Remember: Every dollar you save on transfer fees is another dollar in your family’s pocket.

Quick Recommendation Summary: Best Money Transfer Services 2025

1. Best exchange rates: Wise
2. Fastest cash pickup: Western Union or Remitly
3. Best for mobile money: WorldRemit
4. Best app experience: Remitly or Wise
5. Best for PayPal users: Xoom
6. Widest global coverage: Western Union
7. Best for large amounts: Wise or bank wire

Disclaimer: Exchange rates and fees change frequently. Always verify current rates before transferring. This guide is for informational purposes only and does not constitute financial advice. Transfer limits and availability vary by location and recipient country.