How much does it cost to send money internationally?

When you send money abroad, there are typically two cost components, and most people only see one of them.

The True Cost of an International Transfer

When you send money abroad, there are typically two cost components, and most people only see one of them:

1. 1
   Service fee: The flat fee or percentage charged upfront. This is what most people see when comparing services. A five-dollar fee on a typical transfer equals 2.5%.
2. 2
   Exchange rate margin: The gap between the real mid-market rate and what you actually get. This is often less visible than the service fee and can dominate total cost on some routes.

The World Bank measures total cost as a percentage of a $200 transfer, combining both components. This methodology, used across all 377 corridors on PlainRemit - gives you a true apples-to-apples comparison.

Cost by Transfer Method

Why Costs Vary So Much by Corridor

A transfer of the same amount can cost 1% in one corridor and 15% in another. Key factors include:

• Competition: Major corridors (US→Mexico, US→Philippines) have dozens of providers competing, driving prices down. Niche corridors may have only 2-3 options.
• Banking infrastructure: Countries with robust mobile money systems (like Kenya's M-Pesa) enable cheaper delivery. Countries with limited banking require expensive cash networks.
• Regulatory costs: Anti-money laundering compliance, licensing fees, and capital requirements add overhead, especially for smaller corridors.
• Volume: High-volume corridors attract investment from fintechs. Low-volume corridors don't justify the infrastructure cost.
• Currency liquidity: Less-traded currency pairs have wider bid-ask spreads, adding to the exchange rate margin.

The Most Expensive Corridors

Sub-Saharan Africa consistently has the world's most expensive remittance corridors, with some exceeding 20% of the transfer amount. Corridors to Pacific Island nations are similarly high-cost. The most expensive corridors ranking shows exactly which corridors carry the heaviest burden on senders.

How to Send Money More Cheaply

1. 1. Always compare total cost, not just the service fee. A provider with zero fees might offer a terrible exchange rate that costs more overall.
2. 2. Compare surveyed options for your corridor. Open the corridor page for your country pair and verify a live quote with the services that serve that route.
3. 3. Send larger amounts less frequently. Flat fees become a smaller percentage on larger transfers.
4. 4. Check for promotions. Transfer services frequently offer zero-fee first transfers or loyalty bonuses.
5. 5. Use our corridor pages. The corridor comparison tool shows the cheapest available option for your specific country pair.

What a transfer actually costs

Every international transfer has two costs, and most comparison pages show only the first. The service fee is the upfront charge. The exchange-rate margin is the gap between the mid-market rate (the rate banks trade at) and the rate you are offered, and it is charged whether or not it is itemised. Total cost is the two added together, which is why a headline "no fee" transfer is often not the cheapest one.

The arithmetic, with illustrative figures: on a $1,000 transfer, a $0 fee with a 3.5% margin costs $35; a $4.99 fee with a 0.4% margin costs $4.99 + $4 = $8.99. Same headline amount, roughly four times the difference in what arrives. To check any provider yourself, divide the amount the recipient actually receives by the mid-market rate at the moment you send.

Frequently Asked Questions