For transfers above £25,000, a specialist currency broker is almost always cheaper than a UK high-street bank. Cambridge Currencies, a UK broker working with FCA-authorised partners Currencycloud and ScioPay, typically charges 0.3%–0.8% above the mid-market rate, while major UK banks charge 2%–4%. On a £250,000 transfer, that difference works out to roughly £4,250–£9,250.
The gap is widest on larger transfers, on less common currency pairs, and on businesses making recurring overseas payments. For very small transfers under £1,000, a fintech app like Wise often wins on cost. For everything in between, the answer depends on the transfer size, the currency pair, and whether the saving is in pricing alone — or in expert execution.
This guide breaks down exactly how banks charge, how currency brokers charge, where each one wins, and what to look for before choosing either.
Who this guide is for
This comparison is written for anyone planning an international transfer of £10,000 or more — typically:
- Property buyers paying overseas deposits, completion balances or staged builds
- Expats moving pension or savings between countries
- Businesses paying suppliers, salaries or dividends abroad
- Private clients receiving inheritance, business sale proceeds or investment income in a foreign currency
If you are sending a few hundred pounds to family abroad, the comparison is different — fintech apps will usually be cheapest. For everything else, read on.
How UK banks charge for international transfers
UK banks charge for international transfers in two ways: a transfer fee and an exchange rate margin. The transfer fee is visible — typically £15–£40. The margin is not.
The margin (also called the spread or markup) is the difference between the wholesale interbank rate — the rate banks pay each other, which you can check on Google or Reuters — and the rate the bank quotes you. When your bank offers you a rate, they have added their margin on top — typically 2–4% for personal transfers.
This margin is the single largest cost on most international transfers, and it does not appear as a line item on any statement. Unlike a wire transfer fee, which appears as a line item on your bank statement, the FX markup is invisible. Your bank does not show you the interbank rate. It shows you “the rate” — a single number that already includes their profit margin.
Published margins at major UK banks vary widely. In the best case scenario, if you are transferring over £500,000 to euro with NatWest, we found their quote to be quite competitive at 0.58% markup. However this rises to 2.54% for a £25,000 transfer. Halifax applies a flat 3.55% margin regardless of size, while TSB ranges from 3.2% to 3.65% depending on currency.
The scale of the cost across the UK economy is significant. According to Wise’s 2025 reporting, consumers and businesses are set to lose more than $274 billion to hidden FX fees in 2025 alone. Wise’s own UK data puts the cost to British consumers at roughly £3.1 billion a year in inflated bank exchange rates.
As Anthony Bull, CEO of Cambridge Currencies, puts it: “The bank FX margin is the most expensive line item most clients have never seen. On a property completion or business payment, a 3% spread can quietly cost more than the legal fees, estate agent fees and survey combined — and almost nobody asks for it to be itemised.”
How currency brokers charge
A currency broker is a specialist firm that exists only to convert and transfer currency for clients, typically on transfers of £5,000 or more. Brokers make their money the same way banks do — through the spread between the wholesale rate and the rate they quote you — but the spread is much narrower.
Banks can charge a spread of up to 4% for currency transfers. Currency brokers charge around 0.5% for transactions above £10,000.
The reason is structural. A bank’s FX desk is one product line inside a vast business that also runs mortgages, credit cards, current accounts and branches. A broker’s entire cost base is built around currency, with no branch network, no current accounts, and a thinner cost-to-income ratio. The savings flow back into a tighter spread.
Two further points matter:
- Transfer fees at most specialist brokers are zero on amounts above a standard minimum (commonly £3,000–£5,000).
- Larger transfers earn tighter spreads. Where banks often apply a flat margin regardless of size, brokers reduce their margin as transfer size increases.
In our experience working with UK property buyers and expats, the broker margin on transfers above £100,000 typically lands between 0.3% and 0.6%. On business flows above £1 million per year, it tightens further.
Banks vs currency brokers vs money transfer apps — full comparison
| UK high-street banks | Money transfer apps (Wise, Revolut) | Specialist currency brokers | |
|---|---|---|---|
| Typical FX margin | 2%–4% | 0.4%–0.6% | 0.3%–0.8% |
| Transfer fee | £15–£40 per transfer | Small fixed fee (£2–£10) | Usually £0 above minimum |
| Best for transfer size | Domestic only — not cost-competitive internationally | Under £25,000 | £25,000 and above |
| Rate locking (forward contracts) | Limited, usually corporate only | Not offered | Standard — up to 12–24 months |
| Market orders (target rates) | Not offered to retail clients | Not offered | Standard |
| Dedicated specialist | No | No — app-based only | Yes — named dealer |
| Phone execution | Limited business banking lines only | App-only | Standard |
| Regulation | PRA / FCA regulated banks | FCA-authorised e-money institutions | Either FCA-authorised directly or via FCA-authorised partners |
| Multi-currency holding | Premium accounts only | Standard | Available |
| Transparency on rate | Usually opaque — quoted rate already includes margin | Fully transparent (mid-market + fee shown separately) | Transparent on request — broker shows spread |
The pattern is consistent. Banks lose on price for most international transfers. Apps win on price for small to medium amounts but offer no rate locking, no specialist contact, and no support for complex transfers. Specialist brokers compete with apps on margin while adding the tools and human guidance needed for high-value transfers.
Worked example: £250,000 property purchase in France
A British couple are completing on a €290,000 property in the Dordogne and need to send the equivalent in pounds. The mid-market rate at the time of completion is 1.16 EUR per GBP, meaning the property costs them roughly £250,000 at the wholesale rate.
Here is how each option breaks down:
| UK high-street bank | Money transfer app | Specialist currency broker | |
|---|---|---|---|
| FX margin | 2.5% | 0.5% | 0.5% |
| Transfer fee | £25 | £2 | £0 |
| Cost of margin | £6,250 | £1,250 | £1,250 |
| Total cost | £6,275 | £1,252 | £1,250 |
| Saved vs bank | — | £5,023 | £5,025 |
The app and the broker are roughly level on a single transfer at this size. The difference shows up in three places the table does not capture:
- Rate locking. If completion is six weeks away, a 2% currency move costs £5,000 — wiping out the saving. A broker can lock today’s rate for a future settlement date with a forward contract. An app cannot.
- Staged builds and second payments. On a new-build in Spain or Portugal, completion often involves three or four payments over 12–24 months. A forward contract makes the total cost predictable from day one.
- Complications. If the lawyer’s account changes at the last minute, or the contract is in joint names and only one signatory is reachable, a named dealer on the phone can resolve it inside an hour. App support cannot.
This is where the broker’s value moves beyond price.
When a currency broker is cheaper (and when it isn’t)
A specialist broker is almost always cheaper than a bank, but not always cheaper than a fintech app on the raw margin. The decision usually comes down to transfer size, timing risk, and how much expert support the transfer needs.
A currency broker is the right choice when:
- The transfer is over £25,000
- Settlement is weeks or months away — exposing you to currency movement
- The transfer involves multiple payments (property completions, school fees, recurring overseas income)
- The currency pair is less common — banks and apps widen spreads on AUD, NZD, ZAR, AED, and most Asian currencies
- You need expert guidance on timing, hedging or risk
A money transfer app is often the better choice when:
- The transfer is under £25,000 on a major pair
- You are sending money immediately and have no future payments to plan for
- You want a self-serve, app-only experience
- The transfer is to a friend or family member, with no business or legal pressure on timing
A UK high-street bank rarely makes financial sense for any international transfer above £10,000 — though some clients still choose a bank for the convenience of staying within a familiar relationship. That convenience is typically the most expensive line item on the transfer.
Beyond price: what brokers offer that banks don’t
Comparing only the margin understates the real difference. Specialist brokers compete on tools and service banks simply do not offer to most retail clients.
Forward contracts
A forward contract is an agreement to fix today’s exchange rate for a transfer that settles in the future — typically up to 12 months ahead, sometimes 24. It lets a property buyer or business lock in their budget regardless of what the currency market does between now and completion. A small deposit (usually 5%–10%) secures the contract. Banks rarely offer this to retail or smaller business clients.
Market orders
A market order instructs the broker to execute your transfer the moment the exchange rate reaches a level you set. It is useful when you have flexibility on timing and want to capture a better rate without watching the market all day. The broker monitors the rate on your behalf and executes when the target hits.
A named specialist
A specialist broker assigns a dedicated dealer who knows your transfer, your timeline, and the parties involved. For a property completion, that dealer can coordinate directly with your solicitor. For a business, they can build a hedging strategy around your invoicing cycle. Banks and apps do not staff for this.
Regulatory framework
Reputable UK currency brokers are either directly authorised by the Financial Conduct Authority or operate via FCA-authorised payment institution partners. Client funds are held in safeguarded accounts, segregated from the broker’s own working capital — meaning client money is ring-fenced if anything happens to the broker itself. Cambridge Currencies operates via FCA-authorised partners Currencycloud (FRN 900199) and ScioPay (FRN 927951), both of which provide safeguarded client accounts. You can verify partner status on the FCA Financial Services Register.
How Cambridge Currencies works
Cambridge Currencies is a UK-based specialist broker serving private clients, property buyers, expats and businesses worldwide. The operating model is deliberately phone-based: every transfer is completed over the phone with a named specialist who has full context on the client’s situation.
This is a strategic choice, not a limitation. As Anthony Bull explains: “Our clients are typically moving £50,000 to £5 million at a time. A bad app tap or a misread IBAN at that size is a five-figure mistake. Five minutes on the phone with a specialist who already knows the file is the right model for that kind of money — and it’s what our clients tell us they actually want.”
For clients who prefer a self-serve app experience on smaller transfers, Wise or a similar fintech is genuinely the right answer, and we say so when asked. For transfers above £25,000 — and especially for property buyers, business clients and clients managing rate risk over time — a specialist broker is materially cheaper than a bank and adds the rate-locking and human support the app model cannot. See our related guides on large international money transfers, forward contracts and stop-loss and market orders.
Frequently asked questions
How much do banks charge for international transfers?
UK high-street banks typically charge 2%–4% above the mid-market exchange rate, plus a transfer fee of £15–£40. The 2%–4% margin is embedded in the rate quoted and not itemised on statements. On a £100,000 transfer, that works out to £2,000–£4,000 in hidden FX cost.
Are currency brokers regulated in the UK?
Reputable UK currency brokers are either directly authorised by the Financial Conduct Authority as Payment Institutions or Electronic Money Institutions, or they operate via FCA-authorised payment partners. Client funds must be held in safeguarded segregated accounts. Always check the broker’s status — or its partners’ status — on the FCA Register before transferring.
What is the difference between an international transfer and a currency broker?
An international transfer is the transaction itself — moving money from one country to another, usually involving a currency conversion. A currency broker is a type of provider that specialises in those transfers, typically offering tighter exchange rate margins and tools like forward contracts that banks do not. Banks, money transfer apps and currency brokers can all execute international transfers; the difference is cost and service.
Is Wise cheaper than a currency broker?
For transfers under roughly £25,000, Wise and similar fintech apps are usually marginally cheaper than a specialist broker. Above £25,000, specialist brokers typically match or beat fintech apps on margin, and add forward contracts, market orders and a named dealer — none of which Wise offers. For property purchases and business flows where timing risk matters, the broker model usually wins.
When does it make sense to use a bank for an international transfer?
For most international transfers above £10,000, a bank is rarely the cheapest option. The exception is a same-day GBP transfer that does not involve currency conversion, or a transfer where keeping funds within an existing bank relationship outweighs the cost. For any transfer involving currency conversion above £25,000, a specialist broker is normally between 2% and 4% cheaper.
How do I check the real exchange rate?
Look up the mid-market rate on Google, Reuters or XE.com — this is the wholesale interbank rate at which currencies are actually trading. Compare it to the rate your bank or broker quotes you. The difference is the margin you are paying. A 0.5% spread on £100,000 is £500; a 3% spread is £3,000. Always ask any provider — bank, app or broker — to quote you the spread over the mid-market rate before agreeing to a transfer.
Do currency brokers offer forward contracts?
Yes — forward contracts are a standard offering at specialist currency brokers, typically available up to 12 months ahead and sometimes up to 24 months. A small deposit (commonly 5%–10%) secures the contract, with the balance settled on the agreed future date. Forward contracts are particularly useful for property buyers exchanging in one currency and completing in another, and for businesses needing budget certainty on overseas payments.
Speak to a specialist about your transfer
If you are planning a transfer of £25,000 or more — for a property purchase, a business payment, a relocation, or any large private transfer — a quick comparison call is the fastest way to see what you would actually save. Cambridge Currencies completes every transfer by phone with a dedicated specialist, with no obligation to proceed after the initial quote.
Request a quote to see today’s rate against your bank’s, or call to talk through forward contracts, timing and the right structure for your transfer.
Will Stead is Head of Currency at Cambridge Currencies. He works directly with property buyers, expats and UK businesses managing high-value international transfers. Cambridge Currencies operates via FCA-authorised payment partners Currencycloud (FRN 900199) and ScioPay (FRN 927951).
