Rocket Remit international money transfers in Australia. The fees, rates & how-tos
If you’re looking for a way to send money internationally from within Australia, you’ll no doubt have discovered that now there are a whole range of solutions...
Need to send money out of Australia? Whether it’s for business or to connect with friends or family, there are plenty of options for making a foreign transfer - often called an international money transfer (IMT) or telegraphic transfer (T/T) - when you’re Down Under. They include both traditional transfers using a bank, and alternative services from specialists.
They’re not all the same, though. Confusingly, every option is likely to come with its own set of costs. And that doesn’t just mean the fixed fees you often have to pay. Additionally, banks are able to set their own exchange rate when they convert your money into a different currency - and if they charge anything other than the mid-market rate then they’re effectively pocketing the difference. So you should always consider the exchange rate as an extra cost: use an online currency converter, and compare it to a quote from your transfer provider, to see what your transfer is really worth.
A quick example:
Sending AU$1,000 from Australia to a euro bank account in Germany via online bank transfer with NAB, one of Australia’s largest banks, or via Wise.
Provider | Fees | Exchange Rate | Total Cost |
---|---|---|---|
ANZ | $18 | Exchange rate + markup | $18 + Exchange rate markup |
Wise | $6.95 | The real exchange rate you see on Google | $6.95 |
(Source 1 20 February 2018)
You might naturally expect the easiest option would be to use a bank to send your money abroad. But more and more people are opting to use specialist international transfer services - many of which have been set up relatively recently and make use of technology to speed your transfer up and save money.
There are older, well-established options like Western Union and MoneyGram that will often let your recipient collect money in cash, if that’s more useful than transferring to a bank account. And there are more recently set up companies like PayPal and Wise offering similar online services. The choice is yours.
You’ll find a lot of variety in the fees being charged. Just like the banks, some advertise ‘zero fees’ or ‘no commission’, but you should always be suspicious of this. If a company isn’t charging a flat fee, they might well be hiding the fee in the exchange rate. Which means you could end up paying just as much or even more. PayPal and Western Union even expressly note that they add a profit into the exchange rate they offer you, so it’s quite widespread. So you should always check what the total cost of the transfer is going to be - including the exchange rate.
Wise is different in that it only ever uses the mid-market exchange rate: that’s the same rate you’ll find on Google or other online currency converters. That means Wise hides zero fees in its exchange rate. The only fee you pay is a small percentage cost, always stated upfront so you know exactly how much you’ll pay, and exactly how much will be received.
For anyone who uses multiple currencies regularly, a borderless multi-currency account can be even more useful. For no monthly fees, you can keep money online in dozens of different currencies, and you even get virtual account details for Australia, the US, the UK and the EU - meaning that you can pay or get paid in those places without anyone having to worry about high transfer fees.
Take a look now and see if you could save on your transfer.
It’s still possible to use your bank, of course. The major Australian banks all offer their customers a way to transfer money through internet banking. Here’s a quick rundown of what you have to do.
(Source 1 Source 2 Source 3 Source 4 21 February 2018)
Perhaps you’re not set up with internet banking, though, or you’d just rather do it in person. Know that in-person banking often comes at a slightly higher cost than online - some of the Australian banks note this explicitly. But if you still prefer doing it in person, this is what you need to do.
Good luck sending your money abroad from Australia, however you choose to do it. Just make sure you have the full picture before you hit send.
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