Moving Abroad & International Money Transfers
Table of Contents
Author: Luke Eales
We only list companies that are trustworthy and appropriately licensed. Our aim is to give you a comprehensive view of the regulated money transfer marketplace.
DisclosureMoneyTransfers aims to help users find the best money transfer provider for their needs. To support our free service, we may earn a commission from some of the providers listed in our search results. The commission may also impact the ordering of the providers shown. Our reviews are independent from this and are based on our editorial policy, research and testing of dozens of remittance providers on the market.
Table of Contents
Relocating to a new country marks the start of an exciting adventure. Managing your foreign currency exchanges smartly is essential. I'll explain the key money management considerations for those moving abroad, cover banks, money transfer companies, and multi-currency accounts.
Moving abroad involves transferring funds, managing different currencies, and sometimes opening a local bank account. Specialist money transfer companies provide lower fees and better rates compared to banks. Multi-currency accounts are ideal for expats with financial ties to their home country, offering simpler and cheaper currency exchanges.
A move abroad calls for more than just a money transfer.
You'll start by transferring funds to a new country, and end up living there like a local.
This makes our recommendations a bit more interesting.
I'll go into much more detail later on, but for now the summary is:
Avoid banks: while they might advertise low or no fees, their exchange rates can be 3% or more higher than the best alternative. While they are convenient and tempting, banks are very expensive for currency transfers.
Use a money transfer company instead: specialist companies will offer you a much better deal overall. Some will give you access to the mid-market rate plus fees, and others have zero fees but a slightly inflated exchange rate. Both routes outperform banks. To find out which is best for you, .
Open a multi-currency account: many expats who live abroad still have ties to their original country. You might be receiving income or pension distributions, paying bills on any committments you still have, or sending money to/from friends or family. Opening a multi-currency account gives you a global account for seamless and cost-effective money transfers.
Example: relocation costs & FX impact
Let's look at some of the main cost categories that are typically involved when relocating abroad.
For the purposes of this example, we'll assume an American couple with their funds in USD is moving to Europe.
Payment | USD amount sent (example) | EUR amount received (bank) | EUR amount received (specialist) | Potential saving |
|---|---|---|---|---|
Real estate - deposit | $50,000 | €53,595 | €55,340 | €1,745 |
Real estate - final payment | $250,000 | €268,055 | €276,700 | €8,645 |
Shipping | $10,000 | €10,700 | €11,070 | €365 |
Transfer of savings | $150,000 | €160,825 | €166,020 | €5,195 |
Transfer of retirement accounts | $450,000 | €482,515 | €498,060 | €15,545 |
Grand total | $910,000 | €975,690 | €1,007,190 | €31,495 |
Money transfer companies for moving abroad
Of all the sources of stress when moving to another country, foreign exchange doesn't need to rank high on the list.
For me, managed FX services (also known as currency brokers), are the best ways of bringing a controlled calm to the process.
Wise, Xe and othjer more online-focused companies do offer cost-effective, secure & reliable alternatives. However, with highly personal service, tips, and support by phone and email, FX brokers have the edge for large or complex money moves.
Not to mention they also offer great rates, ability to lock-in rates for future transactions, and in some cases, rate match guarantees.
Currency brokers suitable for moves abroad
| Name | Score | Visit | Disclaimer | |
|---|---|---|---|---|
 | 1 Currencies Direct Read Review | 8.9 | Visit currenciesdirect.com | |
 | 2 Key Currency Read Review | 8.4 | Visit keycurrency.co.uk | |
 | Rate Match Guarantee 3 TorFx Read Review | 8.9 | Visit torfx.com | |
 | 4 OFX Read Review | 8.2 | Visit ofx.com | |
 | 5 CurrencyFair Read Review | 8.0 | Visit currencyfair.com |
Managing money in multiple currencies
Many expats or those who have emigrated keep close ties with their origin country.
You might have friends and family back home, making regular or occasional trips back to visit.
There could be income that continues to be generated back home - like investment proceeds, dividends or rental property income.
You may also continue to pay costs in your country of origin, from school fees to mortgage payments.
That's why multi-currency accounts are so helpful for those with an active life in more than one country.
Contributors
Please share your experience with …