International Banking · Transfers & Payments
International Bank Transfers — Send Money Abroad Efficiently
Every time you transfer money internationally through a high-street bank, you pay a visible fee and an invisible FX spread of 2–4%. On a £50,000 transfer, the hidden spread alone can cost £1,000–£2,000. Specialist FX providers routinely offer spreads of 0.3–0.5%, and the process is equally straightforward. Understanding how international transfers work — and which route to use — is one of the simplest ways to reduce the cost of living and investing internationally.
How it works
How international bank transfers work
SWIFT and correspondent banking
Most international transfers use the SWIFT network (Society for Worldwide Interbank Financial Telecommunication) — a messaging system that coordinates the movement of funds between banks across 200+ countries. Your bank does not necessarily have a direct relationship with the recipient's bank; the funds may pass through one or more correspondent (intermediary) banks.
Each correspondent bank may deduct its own fee from the amount in transit. This is why recipients sometimes receive slightly less than expected — the "SHA" (shared) charging option means the sender pays their bank's fee, but the recipient's bank and any correspondents deduct from the principal. "OUR" transfers (sender pays all charges) solve this, but are more expensive and not always available.
The true cost of a bank transfer
Example: sending £50,000 to a UAE account
Mid-market rate: 1 GBP = 4.70 AED
Bank rate offered: 1 GBP = 4.52 AED (3.8% spread)
Hidden cost: ~£1,900 in the exchange rate
Plus £20–40 SWIFT fee
Total cost: ~£1,950
Same transfer via specialist FX provider
Specialist rate: 1 GBP = 4.67 AED (0.6% spread)
Fee: £0–10
Total cost: ~£300
Saving: ~£1,650
Transfer methods compared
SWIFT, SEPA, specialist providers, and e-money
SWIFT
SEPA
Specialist FX provider (OFX, Moneycorp, etc.)
Wise
High-value transfers
Large transfers — £100,000 and above
For transfers of £100,000 or more, working with a specialist FX dealer rather than using an app or online platform provides access to personal service: a dedicated dealer who monitors the market, advises on timing, and ensures the transfer completes correctly.
FCA-regulated specialists such as OFX, Moneycorp, Smart Currency Exchange, and HiFX are set up specifically for large cross-border transfers. They are required to hold client funds in segregated accounts and to meet FCA conduct standards.
Forward contracts — remove the rate risk
A forward contract allows you to lock in today's exchange rate for a future transfer date — typically up to 12 months ahead. You agree the rate now and complete the transfer later. A small deposit (usually 3–10%) is required to secure the contract.
Forward contracts are particularly valuable when you know a large sum will need to be transferred — a property completion, a pension transfer arriving in instalments, or a regular business payment — but the transfer date is in the future. They provide certainty of cost and protect against adverse rate movements.
Practical guidance
Five tips for reducing international transfer costs
Compare the total cost, not just the fee
The headline transfer fee is rarely the largest cost. The FX spread — the difference between the mid-market rate and the rate you are offered — is often 2–4% at banks. On a £50,000 transfer, that is £1,000–£2,000 hidden in the exchange rate.
Use a specialist provider for amounts over £5,000
Specialist FX providers (OFX, Moneycorp, Smart Currency Exchange, HiFX) operate at spreads of 0.3–0.8%. On £50,000, using a specialist typically saves £750–£1,750 compared to a high-street bank.
Consider a forward contract for large planned transfers
If you know you will need to convert a large sum in the future — a property purchase, a pension transfer, a regular income — a forward contract locks in today's exchange rate for up to 12 months ahead, eliminating the risk of rates moving against you.
Set rate alerts for non-urgent transfers
Most specialist FX providers offer rate alert services. If you have flexibility on timing, setting a target rate and waiting for the market to reach it can meaningfully improve the outcome on large transfers.
Keep records for tax reporting
International transfers are not taxable in themselves — moving money between your own accounts is not income. However, CRS reporting includes account balances and transfers, and HMRC cross-references these against tax returns. Good records demonstrate that transfers are not undeclared income.
FX Transfer Calculator
Estimate the true cost of an international transfer — compare bank rates against specialist FX providers and see how much you could save.
Use the calculator →Guide: Reduce Your Transfer Fees
Step-by-step guide to identifying the cheapest route for your specific transfer — currency, amount, urgency, and destination all affect the optimal provider.
Read the guide →Speak to an international transfer specialist
For large or complex transfers — property completions, pension transfers, cross-border business payments — we introduce clients to FCA-regulated specialist FX providers suited to their needs. Independent guidance on provider selection, forward contracts, and rate timing is included.
Cut the cost of your next international transfer
Tell us the currencies, approximate amount, and timing of your transfer — we'll identify the most cost-effective route and provider for your specific situation.