How to Switch Money Transfer Provider and Stop Overpaying on Fees

The real cost of your current provider, how to compare alternatives, and the steps for a safe switch.

3–5%
Average exchange rate markup (traditional banks)
0.5–1.5%
Average exchange rate markup (specialist providers)
$300–1,200+
Annual saving for regular senders

Most people who send money internationally through their bank are paying two to three times more than necessary. Banks charge an explicit transfer fee and an implicit exchange rate markup. Specialist transfer providers typically charge a fraction of bank rates.

Common reasons people switch

  • Your bank's exchange rate is significantly worse than the mid-market rate on Google or XE.com
  • Transfer fees are high on smaller amounts (many banks charge $25–45 per international wire)
  • Transfer speed is slow — bank wires often take 3–5 business days
  • Your current provider has a high complaint rate for transfer delays or incorrect exchange rates

Step-by-step guide

1

Calculate the real cost of your current provider

Go to Google or XE.com and look up the current mid-market exchange rate. Then check what rate your current provider offers. The difference — often 2–5% for banks — is the hidden margin.

Data pointOn a $5,000 transfer with a 3% exchange rate markup, the hidden cost is $150 — often more than the explicit fee.
2

Check the complaint rate of providers you're considering

Money transfer complaints on ComplaintRate cluster around: funds not received, incorrect exchange rates applied versus those quoted, and inability to cancel pending transfers.

3

Compare specialist providers for your specific currency corridor

Wise is consistently competitive for USD, EUR, GBP, CAD, AUD. Remitly and Sendwave are strong for USD to India, Mexico, Philippines, Africa. OFX is strong for large transfers ($5,000+).

Data pointUse a comparison site like Monito or FXcompared.com to benchmark multiple providers for your exact corridor and amount simultaneously.
4

Verify the new provider's regulatory status

Any legitimate money transfer provider operating in the US must be licensed as a Money Services Business (MSB) with FinCEN. Verify at fincen.gov/msb-registrant-search.

5

Set up an account and verify identity

Most providers require identity verification. This process typically takes 24–48 hours for new accounts.

6

Execute a small test transfer first

Before using a new provider for a large transfer, send $50–100 first to confirm the process works end-to-end.

7

Cancel any standing orders with the old provider

Cancel all scheduled and recurring transfers with your current provider before setting up new ones with the replacement provider.

Before you switch: check the complaint rate of your new provider

ComplaintRate calculates CFPB complaint rates per 1,000 customers — so you can compare institutions of any size on a level playing field.

  • Complaint rate per 1,000 customers for money transfers (search ComplaintRate)
  • Exchange rate offered versus the current mid-market rate
  • Total transfer fee for your typical transfer amount
  • Transfer speed to your recipient's country
  • Whether the provider is licensed by FinCEN and in your state

Common mistakes — and how to avoid them

Mistake

Comparing only the stated fee without checking the exchange rate markup

Fix

The exchange rate margin is usually larger than the explicit fee. Compare the total cost including both.

Mistake

Not doing a small test transfer before sending a large amount

Fix

Send $50–100 first. Confirm delivery, exchange rate applied, and timing.

Mistake

Choosing a provider based on ads without checking their regulatory status

Fix

Verify at fincen.gov/msb-registrant-search before using any provider.

Frequently asked questions

What is the cheapest way to send money internationally?

Specialist providers like Wise consistently offer exchange rates close to the mid-market rate. Use a comparison tool like Monito to find the best rate for your specific currency pair on any given day.

How do I know if a money transfer provider is legitimate?

Check that the provider is registered as a Money Services Business with FinCEN (fincen.gov/msb-registrant-search).

How long does an international money transfer take?

Specialist providers like Wise or Remitly often deliver in minutes to hours for major corridors. Traditional bank wires typically take 3–5 business days.

Other switching guides

How to Switch Credit CardsHow to Switch Mortgage LenderHow to Switch BanksHow to Refinance a Personal LoanHow to Switch Student Loan ServicerHow to Refinance an Auto LoanHow to Handle Debt Collection