LAST REVIEWED: JUNE 2026
TL;DR
The best money transfer services UK savers reach for fall into three camps: app-first providers such as Wise and Revolut that use the mid-market rate plus a small upfront fee, dedicated currency brokers such as TorFX, OFX and Currencies Direct that quote a tighter spread and offer forward contracts on larger sums, and cash-and-branch networks such as Western Union and eurochange that prioritise speed and physical pickup. The single biggest cost is usually the exchange-rate margin, not the visible fee, so a transfer advertised as "fee-free" can still be the most expensive option.
KEY FACTS
- Money transfer firms in the UK operate under the Payment Services Regulations 2017 and must be authorised or registered with the FCA.
- Customer money held by payment institutions and e-money firms is safeguarded, but safeguarding is NOT the same as the £85,000 FSCS protection that covers UK bank deposits.
- Wise and Revolut quote the mid-market (interbank) rate and charge a separate, visible fee; banks and Western Union typically build their margin into the rate itself.
- Currency brokers TorFX, OFX and Currencies Direct offer forward contracts that let you fix a rate for up to around two years on larger transfers.
- A high-street bank international transfer can cost £20 to £40 in fees plus an exchange-rate margin of 2.5% to 4%, far more than most specialists.
How money transfer pricing actually works
When people compare the best money transfer services UK providers offer, the instinct is to look for the lowest fee. That instinct is misleading. The total cost of sending money abroad has two parts: the headline transfer fee, which is usually small and clearly shown, and the exchange-rate margin, which is often invisible and almost always larger. Understanding the second part is the difference between a good and a bad transfer.
The benchmark every cost is measured against is the mid-market rate, sometimes called the interbank rate. This is the genuine midpoint between the buy and sell price for a currency pair at a given moment, the rate you see on a financial news site or a search engine. No retail customer normally gets the exact mid-market rate, but how close a provider gets to it tells you everything about value.
Two pricing models dominate the market. The transparent model, used by Wise and Revolut, gives you the mid-market rate and charges a separate fee on top. You can see exactly what the conversion costs because the rate is not touched. The spread model, used by most high-street banks, Western Union and bureau-de-change style operators, marks up the rate itself: they hand you a worse rate than mid-market and pocket the difference. A transfer that proudly advertises "no fees" almost always recovers its margin through the rate. The money is taken either way; the only question is whether you can see it.
This is exactly why the exchange-rate comparison below matters more than the fee table. A 3% margin on a £10,000 transfer is £300, which dwarfs any £5 to £15 sending fee. The Payment Systems Regulator (PSR) and consumer bodies have pushed for clearer rate transparency precisely because the marked-up rate is where most consumers quietly overpay.
Exchange-rate margin compared: mid-market versus marked-up rate
The table below groups the providers by how they treat the exchange rate. Figures are typical ranges for everyday currency pairs such as GBP to EUR or GBP to USD and move with market conditions, so treat them as indicative rather than a live quote. The key distinction is who anchors to the mid-market rate and who builds a spread into it.
| Provider | Rate model | Typical margin vs mid-market |
|---|---|---|
| Wise | Mid-market rate, fee shown separately | 0% margin (cost is in the upfront fee) |
| Revolut | Mid-market on weekdays, fair-usage limits; weekend mark-up | 0% weekday within plan limits; approx 1% weekend |
| TorFX | Broker spread, no transfer fee | Approx 0.5% to 1.5%, tighter on large amounts |
| OFX | Broker spread, no transfer fee | Approx 0.5% to 1.5%, tighter on large amounts |
| Currencies Direct | Broker spread, no transfer fee | Approx 0.5% to 1.5%, tighter on large amounts |
| eurochange | Marked-up rate, online and in branch | Approx 2% to 4% depending on channel |
| Western Union | Marked-up rate, especially for cash payout | Approx 2% to 5%, higher for cash pickup corridors |
| Typical high-street bank | Marked-up rate plus a flat fee | Approx 2.5% to 4% on top of the fee |
The pattern is clear. Wise charges nothing on the rate and recovers its cost through a transparent percentage fee. Revolut matches the mid-market rate on weekdays up to a monthly free allowance set by your plan, then applies a small charge above it and a mark-up at weekends when wholesale markets are closed. The three brokers, TorFX, OFX and Currencies Direct, hide their cost in a modest spread but waive any explicit fee, which can work out cheaper than Wise on very large amounts because the spread shrinks as the deal size grows. eurochange and Western Union sit at the expensive end, with the widest rate mark-ups, particularly where cash is involved.
Transfer fees compared
The visible fee is the second cost, and for the transparent providers it is the main one. The table below sets out typical fee structures. Remember that a low or zero fee means nothing on its own: a broker with no fee but a 1.5% spread can still be dearer than Wise charging a 0.4% fee on a small EUR transfer, while the same broker beats it on a six-figure one. Always read fee and rate together.
| Provider | Transfer fee model | Notes |
|---|---|---|
| Wise | Variable percentage plus small fixed amount | Fee shown in full before you confirm; lower for bank-funded transfers than card |
| Revolut | Free within plan allowance, then a fee | Paid plans raise the free monthly exchange allowance |
| TorFX | No transfer fee | Cost is in the spread; dedicated account manager for larger clients |
| OFX | No transfer fee above a minimum | Small charge may apply on low-value transfers; cost otherwise in the spread |
| Currencies Direct | No transfer fee | Cost is in the spread; branch network in some expat markets |
| eurochange | Low or no fee online | Margin sits in the rate; also a high-street bureau de change |
| Western Union | Fee varies by payout method and country | Bank deposit often cheaper than cash pickup; rate mark-up on top |
| Typical high-street bank | Flat fee around £20 to £40 | Fee plus rate mark-up makes banks the priciest route for most sizes |
Card-funded transfers usually attract a higher fee than transfers funded from a bank account, because the provider pays a card-processing cost. For recurring payments such as a foreign mortgage or pension, the brokers and Wise can set up regular transfers that lock in a process even if the rate moves.
Send limits compared
How much you can send in one go, and per day, varies sharply by provider and by how you fund the transfer. App-first services tend to cap card-funded transfers more tightly than bank-funded ones, while currency brokers are built for large sums and effectively have no practical ceiling once your account is verified. The table summarises the broad picture; exact limits depend on identity verification, funding method and destination.
| Provider | Typical send limits | Best suited to |
|---|---|---|
| Wise | High per-transfer cap for bank-funded GBP; lower for card | Small to large everyday transfers |
| Revolut | Plan-dependent monthly exchange allowance then fees | Frequent small and mid-size transfers |
| TorFX | No practical upper limit once verified | Large one-off and recurring transfers |
| OFX | No practical upper limit; a minimum transfer applies | Large international payments |
| Currencies Direct | No practical upper limit once verified | Property purchases and expat income |
| eurochange | Moderate online limits per transaction | Smaller transfers and travel cash |
| Western Union | Limits vary by corridor and payout type | Cash pickup and urgent small transfers |
If you are moving the proceeds of a house sale, a deposit on a property abroad or a lump-sum pension transfer, the brokers are the natural home because they handle six and seven-figure sums routinely and assign a dealer to walk you through it. For sending a few hundred pounds to family each month, the app providers are simpler and the per-transfer limits are rarely a constraint.
Bank transfer versus a money transfer specialist
The default option for most people is their own bank. It is also, for the great majority of transfers, the most expensive. A typical UK high-street bank charges a flat international payment fee of roughly £20 to £40 and then applies an exchange-rate margin of around 2.5% to 4% on top. On a £5,000 transfer that combination can quietly cost £150 to £240, against perhaps £20 to £60 through a specialist. The bank wins only on convenience: the money leaves an account you already have, with no new sign-up.
Specialists exist because they strip out that double cost. Wise and Revolut keep the rate honest and show a small fee. The brokers keep the fee at zero and take a thin spread, then add service: a named contact, market guidance and tools to manage timing. The trade-off is that you must open and verify a separate account, which takes identity checks under anti-money-laundering rules.
There is one situation where a bank can be sensible: very small, occasional transfers within the same banking group, or transfers where speed and zero set-up outweigh cost. Otherwise, for anything above a few hundred pounds, a specialist almost always leaves more money in the recipient's account.
Why "no fee" can hide a poor rate
The phrase "no transfer fees" is one of the most effective pieces of marketing in the sector, and one of the most misleading. A provider that charges no fee can still take a larger cut than a provider that charges a clear £5, simply by widening the gap between its rate and the mid-market rate. Because that gap is expressed inside the exchange rate rather than as a separate line, many customers never realise they paid it.
The defence is simple arithmetic. Before you confirm any transfer, find the live mid-market rate for your currency pair, then look at the rate the provider is offering you and the amount the recipient will actually receive. Compare that received amount across two or three providers for the exact same send amount. The provider that delivers the most foreign currency for your pounds is the cheapest, regardless of what the fee line says. This single comparison neutralises every "no fee" claim.
The Payment Systems Regulator and broader UK consumer-protection rules have increasingly pushed for the total cost of a transfer to be shown clearly, including the rate component, so that the fee and the margin cannot be presented separately to flatter one and bury the other. Until that is universal, the received-amount test is your protection.
Forward contracts for large transfers
For large or future-dated transfers, exchange-rate movement is a bigger risk than any fee. If you have agreed to buy a property abroad and complete in four months, a 3% swing in the rate could change the sterling cost by thousands of pounds. This is where currency brokers earn their place. TorFX, OFX and Currencies Direct all offer forward contracts, which let you fix today's rate now and settle later, often up to around two years ahead, usually for a deposit of a small percentage of the total.
A forward contract removes the uncertainty: you know exactly how many pounds the transaction will cost regardless of where the market goes. The trade-off is that you are locked in, so if the rate moves in your favour you do not benefit. Related tools include limit orders, which trigger a transfer automatically if the rate reaches a target you set, and regular-payment plans for recurring obligations such as an overseas mortgage. These instruments are the main reason someone moving a large sum would choose a broker over an app even when the headline spread looks similar.
Wise and Revolut do not offer true forward contracts; they are built for spot transfers at the current rate. For a buyer managing currency risk on a property completion, that is a meaningful gap, and it is why the brokers dominate the large-transfer end of the market.
Cash pickup, branches and speed
Not every transfer ends in a bank account. Western Union built its business on cash pickup: the recipient collects physical cash at an agent location, often within minutes, which is invaluable where the recipient is unbanked or needs money urgently. eurochange combines an online transfer service with a high-street bureau-de-change network. This physical reach is a genuine advantage in certain corridors, but it comes at a price, because cash payout typically carries the widest rate mark-up of any method.
Speed varies by route. App and broker transfers to a bank account commonly arrive within a few hours to one or two working days, depending on the currency, the destination banking system and verification status. Cash pickup through Western Union can be near-instant. Bank-to-bank international payments through a high-street bank are often the slowest, sometimes taking several working days while they pass through correspondent banks.
The decision comes down to the recipient's needs. If they have a bank account and can wait a day, an app or broker will almost always cost less. If they need cash in hand today, or have no bank account, the speed and physical network of Western Union or a branch service can justify the higher cost.
FCA authorisation: what protects your money
Every legitimate money transfer firm operating in the UK is regulated under the Payment Services Regulations 2017 and appears on the FCA Register. But not all authorisations are equal, and crucially, none of them give you the same protection as a UK bank deposit. The distinction between an authorised payment institution, an e-money institution and a bank decides what happens to your money if the firm fails.
| Authorisation type | What it allows | If the firm fails |
|---|---|---|
| Authorised Payment Institution (API) | Provide payment services such as money transfers; cannot issue e-money | Customer funds must be safeguarded; NOT FSCS-covered |
| Electronic Money Institution (EMI) | Issue e-money and hold balances as well as make transfers | Customer funds must be safeguarded; NOT FSCS-covered |
| Bank (deposit-taker) | Hold deposits, lend, make payments under a banking licence | Eligible deposits protected by FSCS up to £85,000 |
Safeguarding means a payment institution or e-money institution must keep customer money separate from its own, typically in a ring-fenced account at a credit institution or covered by insurance, so that if the firm becomes insolvent the customer funds are not treated as part of the failed business and can be returned. That is a real protection, but it is materially different from FSCS cover. The Financial Services Compensation Scheme pays out up to £85,000 per eligible person per failed bank and is a statutory backstop; safeguarding offers no compensation scheme and no fixed limit, only the requirement that your money was held separately and is recoverable.
In practice this means two things. First, you should not leave large balances sitting in a money transfer or e-money account for long; these accounts are designed to move money, not to store it like a savings account with deposit protection. Second, before using any provider, check the FCA Register to confirm its authorisation status and type. Wise and Revolut have operated as e-money institutions in the UK; the currency brokers operate as authorised payment institutions; a high-street bank is a licensed deposit-taker with FSCS cover on deposits. Knowing which category a provider sits in tells you exactly what stands behind your money.
Frequently asked questions
What is the cheapest way to send money abroad from the UK?
For most everyday transfers, an app provider that uses the mid-market rate, such as Wise or Revolut within its free allowance, or a currency broker with a tight spread, beats a high-street bank comfortably. The cheapest option for a given transfer is whichever delivers the most foreign currency for your send amount, so compare the received amount across two or three providers before confirming.
Is my money safe with a money transfer service?
Authorised payment institutions and e-money institutions must safeguard customer money by keeping it separate from their own funds, so it can be returned if the firm fails. However, safeguarding is not the same as the FSCS £85,000 protection that covers UK bank deposits, so you should not hold large balances in these accounts for long periods.
Why does a fee-free transfer sometimes cost more?
Because the provider can recover its margin through the exchange rate instead of a visible fee. A worse-than-mid-market rate can take a larger cut than a small upfront fee, and because it is hidden inside the rate many customers never notice it. Always compare the amount the recipient actually receives.
What is a forward contract and who needs one?
A forward contract lets you fix today's exchange rate now and settle the transfer later, often up to around two years ahead, usually for a small deposit. It suits anyone with a large future payment, such as a property purchase abroad, who wants certainty on the sterling cost. TorFX, OFX and Currencies Direct offer them; Wise and Revolut generally do not.
How long does an international transfer take?
App and broker transfers to a bank account commonly arrive within a few hours to one or two working days, depending on the currency and destination. Cash pickup through Western Union can be almost instant, while traditional bank-to-bank international payments are often the slowest.
Can I send a large transfer such as a house deposit through these services?
Yes. Currency brokers such as TorFX, OFX and Currencies Direct are built for large and recurring transfers and have no practical upper limit once your account is verified, plus tools like forward contracts to manage rate risk. App providers can handle large amounts too, though card-funded transfers are usually capped more tightly than bank-funded ones.
