Sending Money Overseas
On of the biggest hidden costs to expat life, is sending money overseas.
Most banks charge over 1.5% just for exchange currency, when you look into the rates they offer.
With international bank transfer fees on top, things can really start to add up.
The good news – there’s plenty of better alternatives.
Best for:
Medium & large transactions
Personalised service and security
Dedicated account managers
Expats in the Middle East
FCA Regulated ✅
Best for:
Small transfer payments
Multi-currency cards
Digital only service
FCA Regulated ✅
*Applicable regulations and consumer protection may vary depending on your country of residence.
What’s the smart way to use currency transfer services?
When you send money through the traditional banking system, it often gets routed through multiple banks, who all take a fee. For example:
Let’s say you live in Dubai and want to send £40,000 to the UK.
The payment was sent in GBP using a traditional international bank transfer. The bank charged an upfront transfer fee of AED 150.
Although the payment was in GBP, the funds are routed internationally. The transfer passed through two intermediary banks before reaching the UK. Each intermediary deducted a handling fee.
By the time the payment arrived, £38 had been deducted. Your received £39,962, less than amount you needed.
Sending more funds to make up the difference, now adds this cost again.
A smarter approach is to use a currency exchange service that cuts out the middle-men.
Using our example, you send AED to the exchange service’s AED bank account in the UAE. They then send GBP directly from their bank in the UK.
Because the transfers are both domestic, no intermediary banks are needed. There are no unexpected deductions along the way.
This is called local clearing. It means the payment is settled inside the destination country. Costs are clear upfront, and your money arrives faster.
If you’re using an online service like Wise, you often have to deal with this yourself, using their platform to convert the funds and then make an onwards transfer.
If you make the mistake of sending AED directly, your local UK bank will convert the funds to GBP at their rate, and may charge extra.
Foreign exchange specialists like GC Partners, handle the entire transfer for you. You simply send the money to their AED account, and they deal with the rest.
