The Cheapest Ways To Send Money Abroad In 2026

Sending money across borders shouldn't cost you an arm and a leg. Whether you're supporting family back home, paying international freelancers, or managing expenses while living abroad, knowing the most affordable ways to transfer money internationally can save you hundreds - or even thousands - of dollars each year.

According to this article by Fiat Republic, the global average cost for sending a $200 remittance was reported at 6.65% in 2024, which means that for every $200 you send, you're potentially losing over $13 to fees and exchange rate markups.

The true cost of international transfers

Before going into the cheapest methods, let's talk about what actually makes a transfer expensive. The total cost isn't just about the upfront fee you see; there's often a hidden component that eats into your transfer: the exchange rate markup.

Remittance fees can broadly be categorized into fixed fees, percentage-based fees, and hidden fees. That "no fee" transfer from your traditional bank? They're likely making their money through a less favourable exchange rate. According to Monito's research, users who compare services pay an average of just 0.59% in combined fees and exchange rates, compared to the 4.6% charged by banks and traditional money transfer services.

The cheapest ways to send money abroad in 2026

1. Digital money transfer services

Online money transfer platforms have completely changed the game when it comes to sending money internationally. Unlike traditional banks that treat international transfers as a side service, these digital platforms are built specifically for moving money across borders quickly and affordably. Pesa leads the pack with $0 fees on every international transfer - no hidden costs, no surprises.

2. Bank-to-bank transfers

While banks generally charge more for international transfers, some exceptions can work in your favour. Some banks allow fee-free transfers to linked international bank accounts, particularly to overseas arms of the same banking institution.

For example, if you and your recipient both have HSBC accounts, you might qualify for free transfers. The catch is that you'll still need to compare the exchange rates offered, as banks often place their profit in less competitive rates.

When bank transfers make sense:

• You're sending money regularly to the same person
• Both parties have accounts with international banks that waive transfer fees
• You're transferring very large amounts, where percentage-based fees become significant

3. Peer-to-peer payment apps

Peer-to-peer payment apps offer a convenient option for sending smaller amounts internationally, though they work best for casual, person-to-person transfers rather than regular remittances. While apps like PayPal, Xoom, and Venmo are convenient, their international transfer fees can add up.

P2P apps are great for splitting dinner bills with friends abroad or sending birthday money, but they're typically not the most economical choice for larger or frequent international transfers, where dedicated money transfer platforms shine.

4. Multi-currency accounts

If you regularly send money to the same country or receive payments in foreign currencies, a multi-currency account like Pesa, Revolut, or Wise's borderless account can be a game-changer.

Pesa offers multi-currency accounts with fee-free transfers between Pesa accounts and advanced financial services. These accounts let you hold money in different currencies and convert when rates are favourable, potentially saving you money over time.

This approach works particularly well for:

• Digital nomads managing income and expenses in multiple currencies
• Freelancers receiving payments from international clients
• Expats who need to move money between their home country and their current location

Smart strategies to minimize transfer costs

Compare before every transfer

Exchange rates and fees fluctuate constantly. What was the cheapest option last month might not be the best choice today. Use comparison tools like Monito or CompareRemit to check current rates before initiating your transfer.

Choose the right payment method

Transfers are usually the cheapest option when funding international money transfers, though they can be slower than debit or credit cards. Direct debit and credit cards often come with premium fees, so opt for transfers when time isn't critical.

Send larger amounts less frequently

If you're supporting your family regularly, consider sending larger amounts less frequently. Fixed fees make smaller transactions very expensive, so combining transfers can reduce the percentage cost.

Watch out for hidden fees

Always ask: "How much will my recipient actually receive?" This single question cuts through marketing speak and reveals the true cost of a transfer. Hidden fees include exchange rate markups and charges from intermediary banks, which can significantly inflate the total cost.

Consider timing

Some providers offer promotional rates for first-time users or during specific periods. If you're flexible about timing and the transfer isn't urgent, waiting for a better rate can result in meaningful savings.

Red flags to avoid

Watch out for:

• Unusually low fees with terrible exchange rates – The fee might be low, but you're losing money on the conversion.
• Vague pricing – If you can't easily find out the total cost upfront, proceed with caution.
• Unlicensed operators – Ensure your provider is regulated by relevant financial authorities like the FCA or holds equivalent credentials in their jurisdiction.
• No delivery guarantees – Reputable services provide estimated delivery times and ways to track your transfer.

Making your choice

The "cheapest" way to send money abroad depends on several factors:

• Where you're sending money – Different services excel in different places.
• How much you're sending – Fixed vs percentage fees matter differently at different amounts.
• How quickly you need it to arrive – Express services cost more.
• How your recipient wants to receive it – Bank deposit, mobile money, or cash pickup.

For most people, digital money transfer services like Pesa, Wise, WorldRemit, or specialized regional providers offer the best combination of low cost, speed, and reliability. These platforms have proven themselves over years of operation, handling millions of transfers with transparent pricing and strong regulatory compliance.

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