How to Get the Best Exchange Rate When Transferring Money Abroad
Why Exchange Rates Matter More Than Fees
When comparing international money transfer services, consumers often focus on fees while ignoring the exchange rate margin — which is typically where providers make most of their money. A "zero fee" transfer with a 3% rate margin costs far more than a £3 fee transfer at the interbank rate.
Understanding the Interbank Rate
The interbank rate (sometimes called the mid-market rate) is the rate banks use when trading currencies with each other. It's the fairest benchmark for comparison. Google "GBP to EUR" to see the current interbank rate. Most services add a margin — the spread — on top of this.
Best Options for International Transfers from the UK
Wise (formerly TransferWise)
Uses the mid-market rate and charges a transparent fee (typically 0.3–1% depending on currency pair). Consistently rated best for transparency and value on most major currency pairs. Available as a personal or business account.
Revolut
Free plan exchanges up to £1,000/month at interbank rates, then charges a small margin. Ideal for regular moderate amounts. Avoid weekend exchanges when Revolut applies an additional spread of 0.5–1%.
OFX, TorFX, Currencies Direct
For large transfers (£5,000+), specialist brokers often beat both Wise and banks significantly. They offer personalised service, rate alerts, and sometimes forward contracts to lock in today's rate for a future transfer.
What to Avoid
- High street bank international transfers — typically 3–5% margin above interbank
- Airport and hotel currency exchanges — worst rates available
- Dynamic Currency Conversion when using your card abroad
Quick Comparison Tip
Before any transfer, check how much the recipient receives using Wise's comparison tool (wise.com/compare). Enter the amount and currency — it shows what multiple services deliver net of fees and margin, making genuine comparison easy.
