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Big banks foreign transfers rip off

Need to transfer money abroad? Well, you should probably give the big Aussie banks a wide berth.

The ‘Big 4’ banks international money transfer fees are far heftier than online providers – and could cost you as much as $500 more on a $10,000 transfer into British pounds or Euros.

Online money transfer providers including World First and CurrencyFair are over 5 per cent cheaper, on average, than ANZ, NAB, Westpac and Commonwealth Bank, according to analysis by financial comparison site Mozo.com.au.

Also read: You can buy a piece of this Sydney apartment for $57

Online players usually offer lower fees and more competitive exchange rates but also faster turnaround times – from 1-2 days compared to up to five days for the banks. TorFX, World First and CurrencyFair were found to offer the best value across a range of international money transfer scenarios.

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Frustratingly, Australia ranks among the most expensive G20 countries to send money from, with only Japan, South Africa charging more, according to data from the World Bank.


Australians pay an average 9.65 per cent on a $US200 transfer – higher than the global average of 7.45 per cent, the data shows.

The key to the best rates is to shop around, says Mozo Director Kirsty Lamont.

Also read: Why the Aussie dollar is flying high

From

To

Amount transferred

Provider and timing

Amount received

Difference

AUD

USD

AUD 10,000

TorFX, 1-2 days

World First, 1-2 days

USD 7,492

USD 367

(AUD 488)

CurrencyFair, 1-2 days

USD 7,486

Big 4 average, up to 5 days

USD 7,125

AUD

GBP

AUD 10,000

TorFX, 1-2 days

World First, 1-2 days

GBP 5,836

GBP 304

(AUD 519)

CurrencyFair, 1-2 days

GBP 5832

Big 4 average, up to 5 days

GBP 5,532

AUD

EUR

AUD 10,000

TorFX, 1-2 days

World First, 1-2 days

EUR 6,851

EUR 359

(AUD 522)

CurrencyFair, 1-2 days

EUR 6844

Big 4 average, up to 5 days

EUR 6,492

From

To

Amount received

Provider and timing

Cost

Saving

AUD

USD

USD 10,000

TorFX, 1-2 days

World First, 1-2 days

AUD 13,348

AUD 680

CurrencyFair, 1-2 days

AUD 13,357

Big 4 average, up to 5 days

AUD 14,028

AUD

GBP

GBP 10,000

TorFX, 1-2 days

World First, 1-2 days

AUD 17,135

AUD 925

CurrencyFair, 1-2 days

AUD 17,145

Big 4 average, up to 5 days

AUD 18,060

AUD

EUR

EUR 10,000

TorFX, 1-2 days

World First, 1-2 days

AUD 14,596

AUD 798

CurrencyFair, 1-2 days

AUD 14,609

Big 4 average, up to 5 days

“For people sending large amounts overseas or making regular transfers, shopping around can make a big difference as the best online money transfer providers offer lower fees and better exchange rates than the big banks.

“What’s more, providers like TorFX, World First and CurrencyFair can turn around transfers in one to two days compared with up to five days for the big banks.”

Check out Mozo’s International Money Transfer tool at https://mozo.com.au/ international-money-transfer.

Also, get current rates at Yahoo Currency Convertor.