Cheapest Way to Send Money to US: 5 Low-Cost Options Compared

Finding the Cheapest Way to Send Money to the US

With over $68 billion sent to the US annually in personal remittances, finding the cheapest way to send money to the US is crucial for expats, freelancers, and families supporting loved ones. Traditional methods like banks often hide fees in poor exchange rates, while modern services offer transparency and savings. This guide compares 5 affordable solutions, revealing hidden costs and strategies to maximize your transfer value.

Key Factors That Impact Transfer Costs

Understanding these elements helps identify truly cheap options:

• Exchange Rate Margin: The difference between the mid-market rate and what providers charge (often 1-5% of transfer value)
• Transfer Fees: Flat fees per transaction or percentage-based charges
• Payment Method Costs: Bank transfers are usually free, while credit cards add 2-4%
• Speed Premium: Instant transfers cost up to 3x more than 1-3 day options
• Receiving Fees: Some US banks charge $10-$15 for international deposits

5 Cheapest Ways to Send Money to the US

1. Online Money Transfer Specialists

Best for: Transfers over $1,000
Savings: Up to 8x cheaper than banks
Providers like Wise, OFX, and Remitly offer near mid-market exchange rates with low transparent fees. Example: Sending $1,000 USD from the UK costs just $4 with Wise versus $45 with major banks.

2. Digital Payment Apps

Best for: Small transfers under $500
Savings: Often fee-free for wallet-to-wallet transfers
Services like PayPal (Friends & Family option), Revolut, and Skrill allow instant transfers with minimal fees when funding via bank transfer. Watch for currency conversion markups above 1%.

3. Cryptocurrency Transfers

Best for: Tech-savvy senders
Savings: Under 1% in network fees
Using stablecoins like USDC through platforms such as Coinbase avoids exchange rate margins. Recipients convert to USD via US exchanges. Volatility risk requires immediate conversion.

4. Specialist Remittance Services

Best for: Cash pickup needs
Savings: Fixed fees as low as $2.99
Companies like WorldRemit and Xoom offer cash pickup at US locations like Walmart for recipients without bank accounts. Fees are transparent but exchange rates may include 2-3% margin.

5. Bank Wire Transfers

Best for: High-security large transfers
Downsides: Highest average cost ($40+ per transfer)
Only competitive when using specialized services like HSBC Global Money Transfers or Citibank Global Wallet with preferential rates for account holders.

Maximizing Savings: 4 Pro Tips

1. Time Your Transfer: Exchange rates fluctuate daily – use tools like XE Rate Alerts
2. Bundle Transfers: Send larger amounts less frequently to minimize per-transaction fees
3. Choose Local Payment Methods: Avoid credit card funding fees by linking bank accounts
4. Leverage First-Time Offers: Many services offer fee-free initial transfers (e.g., Wise up to $500 free)

Frequently Asked Questions

What’s the absolute cheapest way to send money to the US?

For amounts over $1,000, online specialists like Wise typically offer the lowest overall cost with exchange rates within 0.5% of mid-market and fees under $5. For smaller transfers (<$200), digital wallets like Revolut often have zero fees.

Are there hidden fees when sending money internationally?

Yes, common hidden costs include: exchange rate markups (often 2-4%), correspondent bank fees ($10-$25), receiving institution charges, and payment processing fees. Always check the provider’s “total cost” breakdown before confirming.

How long do cheap transfers to the US take?

Economy options take 1-3 business days. Instant transfers usually carry premium fees. Cryptocurrency transfers are fastest (under 10 minutes) but require conversion steps. Bank wires take 1-5 days.

Is it safe to use online money transfer services?

Reputable services like Wise and OFX are licensed and use bank-level encryption. Verify if the provider is registered with FinCEN in the US or equivalent financial authorities in your country. Avoid services requesting payment via gift cards or cryptocurrency to unknown wallets.

Can I send money to the US for free?

Completely free transfers are rare. However, some methods approach near-zero costs: Revolut offers fee-free USD transfers during weekdays (exchange rate markup may apply), while Wise allows free transfers under $500 for first-time users. Bank account-to-account transfers within the same financial group (e.g., HSBC to HSBC USA) may also be free.