Sending money abroad cheaply

Sending money abroad is a regular need for many UK residents, whether you are supporting family overseas, paying tuition fees, or moving savings to another country. The real cost of your transfer goes far beyond the advertised fee: exchange rates, hidden markups, limits, and verification delays all shape how much actually arrives and when.

Understanding the total cost: fees and exchange rates

Many providers advertise low fees or even zero fees, but this rarely tells the full story. The true cost of an international transfer is made up of two parts: the upfront fee you see, and the exchange rate markup you often do not.

How exchange rate markups work

Most banks and some transfer services mark up the exchange rate above the mid-market rate, which is the real rate you find on Google or financial sites. For example, if the mid-market rate is 1.20 euros per pound, a bank might offer you 1.17, keeping the difference as profit. On a 1,000 pound transfer, a 2 to 3 percent markup alone can cost you 20 to 30 pounds before any transfer fee is added. On a 5,000 pound payment, that could be 100 to 150 pounds disappearing quietly into the provider's margin.

Specialist services like Wise use the mid-market rate with no hidden markup and charge a small, transparent fee instead. For popular routes such as GBP to EUR or GBP to USD, Wise typically charges between 0.4 and 0.7 percent plus a small fixed fee, while GBP to INR may be 1.0 to 1.3 percent. Remitly and WorldRemit, on the other hand, apply exchange rate markups ranging from 0.5 to 3.7 percent, depending on the currency and speed of delivery. Remitly offers two tiers: Economy transfers, which are slower but sometimes fee-free with better rates, and Express transfers, which arrive in minutes but carry higher fees of around 2.99 to 14.99 pounds and worse exchange rates. WorldRemit generally charges flat fees between 0.99 and 5.99 pounds per transfer, with exchange rate markups of 0.9 to 3 percent.

Comparing what your recipient actually receives

The only number that matters is how much your recipient gets. Before confirming any transfer, check the exact amount that will arrive on the other side. Wise, Remitly, and WorldRemit all show you this figure upfront, but the totals can differ significantly for the same sending amount. For smaller transfers under 500 pounds, WorldRemit's flat fee structure may work out cheaper. For larger amounts over 1,000 pounds, the exchange rate markup becomes the main cost driver, and services like Wise that use the mid-market rate often deliver more to your recipient. Always compare the receive amount across at least two providers for your specific route and amount before you send.

Transfer limits, verification, and first-transfer delays

All UK money transfer providers must follow Anti-Money Laundering regulations and Know Your Customer rules enforced by the Financial Conduct Authority and HMRC. This means every provider will verify your identity, and larger or unusual transfers may trigger additional checks.

What documents you will need

For your first transfer, expect to provide a government-issued photo ID such as your passport, UK driving licence, or Biometric Residence Permit if you are a non-British resident. You will also need proof of address, typically a recent utility bill, council tax statement, or bank statement dated within the last three to six months. For larger transfers, especially those over 1,000 to 10,000 pounds depending on the provider, you may be asked for proof of the source of funds. This could be payslips, bank statements showing salary deposits, a mortgage completion statement if you are moving property funds, or business invoices if you are self-employed. Some providers also ask for the purpose of the transfer, such as family support, tuition payment, or property purchase.

These checks are legal requirements under the Money Laundering Regulations 2017 and are not personal. Providers must confirm the identity of both sender and recipient, especially on international transfers. Transactions over 8,800 pounds or those flagged as suspicious must be reported to the National Crime Agency. Most verification completes within minutes for standard checks, but high-value transfers requiring source of funds confirmation can take one to two business days.

Daily and per-transfer limits

Each provider and bank sets its own transfer limits. High street banks typically allow international transfers of around 25,000 to 50,000 pounds per day, though premium accounts may permit much higher amounts. Specialist services often have higher limits: Wise allows up to 1 million pounds per transfer, or up to 20 million pounds when sending from a balance already held in your Wise account. Remitly and WorldRemit have lower caps, often in the range of 5,000 to 10,000 pounds per transaction, making them less suitable for large one-off payments like property deposits.

If you need to send more than your daily limit, you can typically arrange the transfer in branch or by phone with your bank, though this may require additional identity verification or approval and may take longer. For regular large transfers, providers may increase your limit once your account history is established and verified.

Avoiding remittance scams and protecting your money

Fraud targeting international transfers is a serious and growing problem in the UK. Scammers use sophisticated tactics to trick people into sending money to fraudulent accounts, and once the money leaves your account, it is extremely difficult to recover.

Common scam patterns

The most widespread scam is the authorised push payment fraud, where you are tricked into authorising a bank transfer yourself. This might involve a caller pretending to be from your bank, the police, HMRC, or another trusted organisation, instructing you to move money to a safe account or to verify something urgently. Another common pattern involves genuine transactions where bank transfer details are intercepted and changed, for example when paying a solicitor or supplier by email and a scammer redirects the payment to their account.

Other scams to watch for include offers to work from home as a money transfer agent or account manager, where you are asked to accept payments into your bank account and forward the money to another account in exchange for a percentage. This is money muling, a serious criminal offence. If caught, you could be sentenced to up to 14 years in prison and receive an unlimited fine, and you may find it hard to access banking services or credit in the future. You may also be contacted by someone claiming to be a foreign official who needs help transferring large sums of money, or asked to pay a fee upfront for a loan, job, or lottery win.

How to protect yourself

• Only use FCA-authorised payment providers. Check the Financial Services Register on the FCA website to confirm a provider is authorised and has permission for the service it is offering. Wise, Remitly, and WorldRemit are all FCA-regulated.
• Never share your bank account details, passwords, PINs, or security codes with anyone you do not know. If someone contacts you unexpectedly asking you to move money, hang up and call the organisation back using a number you find yourself on their official website.
• Use the Confirmation of Payee service when sending money to a new UK account. This checks whether the payee name matches the account details before the transfer is made, helping to reduce misdirected payments.
• If someone pressures you to act quickly or creates a sense of urgency, stop and check independently. Scammers rely on rushing you before doubt sets in.
• For international transfers, double-check the recipient's bank details directly with them using a different communication method, not by replying to the email or message that provided the details.

What to do if you have been scammed

If you realise you have been scammed, act immediately. Contact your bank or payment provider straight away and explain the situation in detail. Request them to initiate a recall of the transaction or freeze the related account if possible. The faster you act, the better the chance of recovering your funds. Report the fraud to Report Fraud, formerly known as Action Fraud, which is the UK's national reporting centre for cybercrime and fraud. You can report online at reportfraud.police.uk or by calling 0300 123 2040. You will receive a crime reference number. If your bank refuses to help or you are unhappy with their response, you can complain to the Financial Ombudsman Service after eight weeks or sooner if the bank sends you a final response letter.

Choosing the right service for your needs

No single provider is cheapest for every route or amount. Wise is typically the most cost-effective for regular bank-to-bank transfers of any size, especially to major currencies, because it uses the mid-market exchange rate with low transparent fees. Remitly can be competitive for remittance corridors to countries like India, the Philippines, or Nigeria, particularly if you use the Economy option for amounts over 1,000 pounds. WorldRemit is strong for mobile money transfers to regions where recipients do not have traditional bank accounts, such as M-Pesa in Kenya or MTN Mobile Money across Africa, and its flat fee structure can work out cheaper for small transfers under 500 pounds.

For large one-off payments such as property deposits or tuition fees, Wise supports transfers up to 1 million pounds and offers volume discounts when you send over 20,000 pounds in a month. High street banks remain necessary for very large or complex transactions, but their exchange rate markups make them expensive for routine transfers. Speed also varies: Wise delivers around 65 percent of payments instantly and 86 percent within one hour for popular routes, while WorldRemit authorises around 90 percent of its transfers within minutes, especially for cash pickup and mobile money. Remitly Express also arrives in minutes but costs more.

Regulatory protections and safeguarding

All FCA-authorised payment institutions and electronic money institutions must safeguard customer funds. This means your money is held in separate safeguarding accounts with established banks, or protected by insurance or guarantees. If the provider goes out of business, you should get most of your money back, though it may take time and some costs could be deducted by the administrator or liquidator. This is different from bank deposits: money held with non-bank payment providers is not covered by the Financial Services Compensation Scheme, which protects up to 85,000 pounds per person in UK bank accounts.

Wise, Remitly, and WorldRemit are all FCA-authorised. Wise is regulated as an Electronic Money Institution, while Remitly and WorldRemit operate as authorised payment institutions. All three are subject to Anti-Money Laundering rules, safeguarding requirements, and regular FCA audits. Always confirm a provider's authorisation status on the FCA Financial Services Register before sending any money, especially if you are trying a new service. Some providers use different trading names to the one registered with the FCA, so look for the company name behind the brand.