International money transfer fees come in four parts: the exchange rate margin (typically 0.1–4% above the mid-market rate), a fixed transfer fee (£0–£40), correspondent bank charges on SWIFT routes (£5–£30 each), and a receiving-bank fee (£0–£20). The exchange rate margin is the largest cost on most transfers — often more than every other fee combined.
Who this guide is for
This guide is for anyone planning to send money internationally and trying to work out what they will actually pay — whether you are a private client moving funds abroad, a UK business paying overseas suppliers, an expat sending money home, or a property buyer funding an overseas purchase. It explains the four cost components, what counts as a hidden fee, and how to compare providers honestly.
The four ways providers charge for international transfers
Every international transfer has up to four cost layers. Most provider marketing focuses on one and quietly applies the others.
- Exchange rate margin. The difference between the mid-market rate (the wholesale rate banks use between themselves) and the rate quoted to you. Banks typically apply 2–4%; specialist currency brokers 0.1–0.6%; money transfer apps 0.4–1.5%; cash services 3–7%. On larger transfers, this is by far the biggest cost.
- Fixed transfer fee. A flat charge per transfer. Banks often charge £15–£40 per international wire. Specialist brokers usually charge nothing on most major pairs. Apps charge a small fixed fee plus a percentage.
- Correspondent bank charges. On standard SWIFT transfers, the funds may pass through one or two intermediary banks. Each can deduct £5–£30 from the transferred amount before it reaches the recipient. The sender often does not see this in the headline price.
- Receiving bank fee. Some banks charge their own customers a fee for receiving an inbound international transfer — typically £0–£20, occasionally higher on certain account types. Outside the sender’s control but worth knowing.
Typical fees by provider type
Headline numbers vary by provider, but the structure is consistent. The table below summarises typical fee ranges across the main provider types for outbound UK transfers.
| Provider type | Exchange rate margin | Fixed transfer fee | Correspondent fees | Best for |
|---|---|---|---|---|
| High-street bank | 2–4% | £15–£40 | Often passed through | Convenience for small transfers |
| Specialist currency broker | 0.1–0.6% | None on most pairs | Absorbed or routed direct | Larger transfers (£5,000+), property, business |
| Money transfer app (Wise, Revolut) | 0.4–1.5% | £0.20–£5 + percentage | Generally none on supported routes | Smaller transfers, peer-to-peer, app-native users |
| Cash transfer (Western Union, MoneyGram) | 3–7% | £5–£25 | Built into rate | Cash pickup in destination country |
| Online bank (Monzo, Starling, Revolut Standard) | 0.5–2% | £0–£7 | Sometimes passed through | Small ad-hoc transfers |
The hidden cost most providers do not mention
The biggest hidden cost on international transfers is not a fee — it is the exchange rate margin. Marketing for many providers leads with “no transfer fee” or “zero commission” while the rate offered is 2–4% worse than the mid-market rate. On a £50,000 transfer, a 3% margin equals £1,500 — roughly 100 times the size of a typical £15 transfer fee.
Anthony Bull, CEO of Cambridge Currencies, calls this the “fee illusion”: “The customers most worried about being charged a £25 wire fee are often the ones losing £1,500 in the rate without realising it. The headline fee is what they see; the rate margin is where almost all the cost actually sits.”
According to the World Bank’s Remittance Prices Worldwide data, the global average cost of sending $200 internationally was 6.36% in Q3 2025, down from 6.49% in Q1 2025 — the vast majority of which is exchange rate margin rather than visible fees. The Bank for International Settlements has highlighted this same lack of price transparency as a structural issue across cross-border payments.
How to compare provider fees fairly
Compare providers on the amount the recipient actually receives for a given amount sent — not on the headline transfer fee or the displayed rate. This single number captures everything: margin, fees, correspondent charges, and any built-in cost.
- Get a quote from each provider for the exact same amount and currency pair.
- Ask each provider to confirm the amount the recipient will receive, after all fees and rate margin.
- Compare those final figures side by side. The highest amount delivered is the best deal.
- Where possible, also compare the rate against the live mid-market rate at the time — a margin under 0.6% on a major pair is competitive; over 2% is expensive.
This approach is particularly important for larger transfers. Our guide on how to choose a currency broker for your UK business walks through the same comparison framework for B2B FX, and our piece on the safest way to transfer money internationally covers how regulation and provider type interact with cost.
Worked example: a £50,000 GBP/EUR transfer
To illustrate how the four cost layers actually translate to money, here is a like-for-like comparison of a £50,000 transfer from the UK to Spain (GBP to EUR), assuming a mid-market rate of 1.1700:
| Provider type | Rate offered | Margin | Fixed fee | EUR delivered | Total cost |
|---|---|---|---|---|---|
| High-street bank | 1.1349 | 3.0% | £25 | €56,716 | £1,768 |
| Online bank | 1.1583 | 1.0% | £7 | €57,907 | £585 |
| Money transfer app | 1.1618 | 0.7% | £30 | €58,065 | £409 |
| Specialist currency broker | 1.1665 | 0.3% | None | €58,325 | £150 |
The difference between a high-street bank and a specialist broker on this transfer is £1,618 — nearly 100 times the headline “£25 transfer fee” the bank advertises. On a property purchase, a tuition payment, or a business payroll, that gap is the difference between covering a deposit comfortably and shaving margin off the budget.
When fees matter more than rate
For very small transfers, the maths flips. On a £100 transfer to a family member abroad, a £2 fixed fee equals 2% of the total, often more than the rate margin difference between providers. For amounts under £1,000, money transfer apps with low fixed fees and reasonable rate margins are usually the cheapest total option.
The threshold where rate margin becomes the dominant cost is roughly £1,000–£2,000. Above that, every additional pound sent makes the rate matter more than the fee. For transfers above £5,000, the rate is almost always the cost — see our explainer on what an international money transfer is for context on how the underlying mechanics differ between provider types.
Other costs to factor in
- Speed surcharges. Some providers charge extra for same-day delivery. See our guide to international money transfer times for which methods deliver fastest without paying a premium.
- Card-funding fees. Funding a transfer by debit or credit card often adds 1–3%. Bank transfer funding is usually free.
- Cancellation and amendment fees. Once a transfer is in flight, cancelling or amending the recipient details can cost £15–£40 or be impossible.
- FX volatility cost. The rate can move between quote and execution. Locking in a rate via a forward contract avoids this but typically requires a specialist broker.
- Compliance hold-up cost. Documentation delays can extend a transfer by 24–72 hours — sometimes meaning the rate moves against you. See how to send over £10,000 abroad for how to avoid this.
Frequently asked questions
Costs vary by provider type. Banks typically charge a 2–4% rate margin plus a £15–£40 fixed fee. Specialist currency brokers charge 0.1–0.6% margin with no fee on most pairs. Money transfer apps charge 0.4–1.5% plus a small fee. Cash transfer services usually charge 3–7%. The rate margin is the largest cost on transfers above £1,000.
The main hidden costs are the exchange rate margin (the difference between the mid-market rate and the rate offered) and correspondent bank charges deducted by intermediary banks on SWIFT routes. Many “no fee” providers recover their cost entirely through a wider rate margin.
The exchange rate margin is the difference between the wholesale mid-market rate and the rate offered to the customer. Banks typically apply 2–4%; specialist currency brokers 0.1–0.6%; money transfer apps 0.4–1.5%. On larger transfers it is the largest cost component.
Get a quote from each provider for the exact same amount and currency pair, ask each one to confirm the amount the recipient will actually receive, and compare those final figures. The highest amount delivered is the cheapest provider for that transfer.
For transfers above £5,000, a specialist currency broker is almost always cheaper than a bank — typically by 1.5–3.5% of the transfer amount. The savings come from a tighter exchange rate margin and the absence of a fixed transfer fee.
Yes. On standard SWIFT transfers, intermediary correspondent banks may deduct £5–£30 from the transferred amount. Specialist brokers and SWIFT gpi-enabled providers either route direct or absorb these charges so the recipient receives the full agreed amount.
Sometimes. Some banks charge their own customers a small fee (£0–£20) for receiving an inbound international transfer. This is set by the receiving bank and is outside the sender’s control. Most major UK personal current accounts now receive standard inbound transfers free.
Always compare providers on the amount the recipient actually receives — not on the headline fee or the rate alone. Ask the provider to confirm the all-in cost in writing. Use providers that quote against the live mid-market rate. For larger transfers, work with a specialist broker that charges no fixed fee and routes direct.
Get a quote and see the all-in cost
The fastest way to know what your transfer will actually cost is to get a real quote against the live rate. Cambridge Currencies completes every transfer by phone with a dedicated FX specialist who confirms the all-in cost in writing before you commit — no headline-fee marketing, no surprise correspondent charges. Request a quote for your transfer.
Cambridge Currencies completes all client transfers through its FCA-authorised payment partners, Currencycloud (FRN 900199) and ScioPay (FRN 927951). All client funds are held in safeguarded accounts.
