Top 5 ways to transfer money from Australia

T

We Australians are proud of where we’re from. Yet many locals in Australia are curious about the global economy and transferring money overseas.

Whether we travel, work, or start a business abroad, we frequently frequently need to send and receive money worldwide.

Send Money Australia and similar resources exist to help with the process of sending money. In the article below we will review five ways you can move money from Australia to anywhere in the world. For each, we’ll weigh the pros and cons so that you can choose the option that’s best for you and hopefully help you save some money.

The Australian Dollar Is A Hot Commodity On Global FX Markets

As one of the wealthiest developed nations on Earth, many Australian Dollar (AUD) currency pairings rank among the world’s busiest. Thanks to our status as a resource-rich country, we do a brisk business with many nations around the world.

However, those new to Australia might be surprised to learn that AUD/NZD is our busiest pairing by far. Let’s review some stats – according to a recent report, more than 371 million NZD is sent to New Zealand from Australia annually.

Of all capital inflows from abroad, this amount is the largest by far. For perspective, remittances from the UK were in a distant second, with an average of 34 million NZD sent per year.

Five Ways To Move Money From Australia

Are you looking to hedge your liquid assets? Want to invest in property overseas? No matter the reason, there are numerous ways to send your capital abroad.

Which is best suited to you? Below, we’ll discuss the five main options (in no particular order) for sending cash internationally from Australia.

Option 1 – Bank Wire Transfer

This option is the one most are familiar with. Each of the Big Four offers clients the ability to send cash aboard via wire transfer. These institutions provide two primary channels – in-branch and online transfers.

In terms of fees, moving money via online banking or apps is far cheaper than in-branch. For example, Commonwealth Bank charges $30 for transfers arranged by a personal banker/teller. However, if you do it online, you’ll pay as little as $6 (less than 1,000 AUD & denominated in foreign currency.)

If you’re moving money in a foreign currency, they’ll then change your AUD into that said currency. They’ll do so at their rate, which differs from the interbank rate by about 2%-3%.
 
So, why do people move money through their bank? It’s convenient, and in many cases, quite easy. You don’t have to sign up for anything new – you log into online banking, head over to “transfers” and input your details.

As you’ll see below, though, there are cheaper ways to move your cash around the globe.

Option 2 – Remittance Agencies

Many Australians have family members living abroad – most commonly in New Zealand. Thanks to the aforementioned Trans-Tasman Travel Arrangement, they can do this with few restrictions.
 
However, life can broadside you when you least expect it. For instance, your children, who are attending uni in Hamilton, may need more money for books.
 
 For this reason and countless others, people use remittance agencies. Unlike banks, you can find many remittance agents in your area. In addition to that, they also have more convenient hours.

However, the most significant benefits of remittance agencies lie in their ability to get cash in the hands of your recipient. Within a few hours, your recipient can pick up physical cash at agent’s offices across Australia. Best of all, they don’t even need to have a bank account.

When it comes to fees and exchange rate margins, remittance agencies are often similar to the banks. If you’re sending cash to popular destinations, prices are usually reasonable. However, less common nations can cost more.

Follow the golden rule of remittance agencies – try not to pay more than 5% in fees/margins. That’s the goal the World Bank set out in the mid-2010s for the reduction of remittance fees. We recommend checking out WorldRemit or Remitly, as both have consistently lower prices than Western Union or Moneygram.

Option 3 – Wire Via Online Money Transfer Provider

If you’re about to do a standard bank transfer, we strongly recommend checking out a few online alternatives. In the 2010s, online money transfer providers have surged in popularity, thanks to their shockingly low fees/margins. Some providers, like Transferwise, charge the mid-market or interbank rate.

There more to their emergence than low prices – they also offer an easy-to-understand interface, excellent customer service, and a suite of value-added services. These include hedging tools like forward contracts, online accounts, and dedicated dealers.

They also offer a variety of ways to move money to your destination. Of them, wire transfers are the cheapest. To process them, start by providing your bank details, and those of your recipient. Enter the transfer amount and then confirm the transaction. Within 24-48 hours, your target will have their money.

Option 4 – Card Transfer Via Online Money Transfer Provider

Does your recipient need money sooner than 24-48 hours?  Do a card transfer instead. Unlike wire transfers, card transfers credit your recipient almost instantly.

However, by opting for speed, you’ll pay a bit more in fees. This amount varies from one provider to the next, but it ranges from 0.4% to 1.17% of the send amount. Overall, though, these transfers are still cheaper than those offered by most financial institutions.

Option 5 – Direct Debit Via Online Money Transfer Provider

Do you employ a remote team abroad? If so, setting up wire transfers every month can get tedious. Thankfully, many online money transfer firms offer direct debit. You set up your account, your recipients, and the amounts in advance, and that’s it.

In return for this service, you’ll pay more in fees/margins than a wire transfer. However, the time you save might be worth the cost.

As you can see there Are Numerous Ways To Send Cash From Australia

When it comes to sending cash, banks, remittance firms, and online money transfer providers offer Australians numerous options. Each has unique advantages – we hope that through this blog, you’ve found the option that works best for you.

Add comment

By admin