How to get the best exchange rate on money transfers
The tips and tricks to get you more bang for your Aussie bucks.
To help you get a better deal when transferring money overseas, we compared the main ways to exchange money. Generally, a specialist money transfer service offers better exchange rates than a bank.
How to find the best exchange rates
When transferring money internationally or exchanging currency for a trip overseas, you will want to get the most bang for your buck. So here's our top tips on how to get the better exchange rates:
Do
- Use money transfer specialists: Providers such as OFX and Wise add lower markups to exchange rates and cheaper transfer fees than a bank. Also, international transfers should only take 24 to 48 hours.
- Convert money when rates are favourable: Exchange your money a few months in advance when rates are more favourable. Following the news will help, you can lock in a better rate as currencies tend to overreact in the short-term to news around inflation and interest rates.
Don't
- Exchange money at airports or train stations: Although it's convenient, they never offer the best exchange rates. You will find they take advantage of people's need to exchange their money and charge expensive markups.
- Use a credit or debit card abroad: Unless you're 100% sure, your card could add foreign exchange fees on overseas purchases.
How to get the best exchange rate on international money transfers
If you plan to use an international money transfer service, then it's best to shop around and compare your options. The more time you can leave yourself before needing to make the transfer the better. Here are a few things to think about when comparing money transfer exchange rates:
- Compare providers. Use our table to compare online providers. It is also worth getting quotes from a few providers and seeing which offers the better deal.
- Know the mid-market rate for your currency. Money transfer providers skew exchange rates in their favour. Therefore it is best to use the mid-market rate as a baseline and see who is offering a fair exchange rate.
- Use transfer tools to save money. Consider using recurring payments, forward contracts and limit orders to get a stronger exchange rate.
- Skip the bank. The bank is not your friend in this situation, as they almost always offer weaker exchange rates. For example, CBA adds a markup of 4.10% when exchanging money.
- Send larger amounts. You will find that many money transfer providers offer stronger exchange rates for larger transfers. If you send more than $10,000 with OFX, you will avoid any transfer fees.
Finder survey: Would Australians of different ages use a bank or a money transfer specialist to send money overseas?
| Response | 75+ yrs | 65-74 yrs | 55-64 yrs | 45-54 yrs | 35-44 yrs | 25-34 yrs | 18-24 yrs |
|---|---|---|---|---|---|---|---|
| Bank | 46.55% | 32% | 29.65% | 27.98% | 31.98% | 35.32% | 44.33% |
| I do not send money overseas | 31.03% | 54.29% | 50% | 48.7% | 35.03% | 33.03% | 28.87% |
| Money transfer specialist | 17.24% | 11.43% | 13.37% | 17.62% | 25.38% | 26.15% | 17.53% |
| Neither | 5.17% | 2.29% | 6.98% | 5.7% | 7.61% | 5.5% | 9.28% |
Source: Finder survey by Pure Profile of 1110 Australians, December 2023
Which Australian bank offers the best foreign exchange rate?
Based on the exchange rates offered on the top three currency pairs, NAB is the Big Four bank with the best foreign exchange rates in Australia, and Commonwealth Bank provides the weakest rates.
This is based on the FX rates of the major banks as of 5 November 2024 and should only be used as a guide. Foreign exchange rates change all the time, so it's worth confirming the exchange rate at the time you want to exchange money.
You're also likely to get a much better deal by using a dedicated money transfer specialist such as Wise, OFX and TorFX if you're sending money overseas.
| Bank | AUD to USD | AUD to Euro | AUD to GBP |
|---|---|---|---|
| ANZ | 0.6369 | 0.5838 | 0.4909 |
| Commonwealth Bank | 0.6324 | 0.5807 | 0.4877 |
| NAB | 0.6427 | 0.5908 | 0.4958 |
| Westpac | 0.6339 | 0.5833 | 0.4896 |
The data contained within the table was captured on 5 November 2024.
How to monitor exchange rates?
If you know in advance you will be sending money abroad or travelling overseas, then you should monitor currency trends ahead of time. Take a look at our live currency converter to see what exchange rate you would get for converting your cash today. Market demand dictates how much one currency is worth compared to another - this is known as the mid-market rate. It is also the rate that banks use to trade money with one another.
When you convert money through a money transfer service, you will typically find that the provider adds a margin on top of the exchange rate to make money. So it is worth keeping this in mind when you are monitoring exchange rates.
Select the currency pair to fit your needs
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Where to exchange currency before your trip
If you know in advance that you will be travelling abroad, then there are several options to exchange money:
- Order foreign currency online. You can order currency online from a service similar to S Money and pick it up from a local store. When we reviewed rates on 7 August 2023, S Money had strong exchange rates for USD, Euro, JPY and GBP.
- Check local money changers. Take a trip into the city and view rates at money exchange services such as United Currency Exchange, Travelex, Travel Money Oz and Crown Currency.
- Check your local bank. If you have an account with one of the larger banks in Australia, they should be able to sell you a wide range of foreign currencies. Just beware of poor exchange rates.
Where to exchange currency outside of Australia?
When traveling internationally you'll typically get better exchange rates at banks, ATMs and post offices. If you have a bank card that doesn't charge international ATM fees, this will most likely be the strongest and most convenient option.
It may be possible to exchange money at your hotel, but double-check the rate against the mid-market rate to see how strong it is. You may also find that some local shops and restaurants offer to accept payment in your native currency.
Here's our dos and don'ts when it comes to exchanging currency outside of Australia:
Do exchange money at:
- ATMs
- Post offices
- Banks
- Your hotel
Do not exchange money at:
- Tourist destinations
- Street-side exchange bureaus
- Airports, train stations, bus stations and the like
Frequently asked questions
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Ask a question
I need to transfer $20000 US from Australia to an elderly man in the USA but am not sure how to do this safely. I want assurance he will get the money but I need assurance I get what I pay for.
Any suggestions ?
Hi Pete,
Thank you for your comment.
There are different ways you can go about transferring money to the US. You may do online banking, wire transfer, or money transfer services. Meanwhile, you may compare a fast and secure way of sending money to the US. Bank transfers are safe and reliable, though they are by no means the most cost-effective or fastest option. Inter-bank money transfers and transferring money from one bank or one financial institution to the other within the same country is mostly free of cost. However, sending money from one country to another includes different types of fees (some hidden), so be sure to factor this into your decision-making process.
Hope this helps.
Regards,
Jhezelyn
Hi Jeff,
Thank you for writing to us. :)
You are on the right page. Please enter the AUD transfer amount and choose the desired currencies on our comparison table then click “Calculate”. It will prompt you the list of transfer services available and their updated rates.
Alternatively, you can also fill out the Enquiry form located a bit below for a FX expert to check on your options.
Hope this helps.
Cheers,
Jonathan
My existing FX account now does not handle small amounts for my family in the U.K., EG UKP100.00 transfers. They are happy to continue to handle my company transfers to China. Are you able to recommend a service for both of these accounts?
Hi Steve.
Thank you for your inquiry.
You may consider a multi-currency bank account if you regularly deal with currencies due an international business or personal reasons. This is also known as the foreign currency account wherein they would allow you to hold different currencies and convert them when you want to so you can avoid short-term rate fluctuations from harming your balance.
Please refer to the table above to compare international money transfer companies.
Hope this helps.
Regards,
Jhezelyn
what is one advantage of floating exchange rate?
Hi Poki,
Thanks for your question.
Flexible exchange rates are said to be ‘floating’ and can fluctuate regularly due to many factors. To learn more about these factors, please check our foreign exchange rates guide.
A floating exchange rate offers several advantages. One of which is the flexibility and automatic adjustment of the rate in case of disequilibrium (deficit or surplus) as an effect of import and export transactions. The exchange rate is also stable and predictable, which is a good thing especially for exporting firms.
I hope this answers your question.
Cheers,
Anndy
i want to know please what is best – AUD to USD or British pounds?
I intend to set up a multi-currency account and would also like details.
Thank you.
Hi Janis,
Thanks for your question.
Please note that exchange rates are different for every provider.
If you intend to apply for a multi-currency account, you will need to check what the exchange rates are from that specific financial institution.
You can get an indicative idea of what exchange rates the providers are offering by opening that link.
Regards,
Shirley