Comparison
Money Transfer Service vs Bank Transfer
When you send money abroad from the UK, the choice is usually between a specialist money-transfer service and a plain transfer from your high-street bank. The visible fee is rarely what decides it — the real difference is hidden in the exchange rate. Here is how the two compare and how to pick the cheapest for your transfer.
The cost that hides in the exchange rate
Every international transfer costs you in two places. The first is obvious: a transfer fee shown at checkout. The second is easy to miss: the exchange-rate margin — the gap between the rate you are offered and the mid-market rate that banks trade at among themselves.
A “zero-fee” transfer with a 3% rate margin is more expensive than a small fixed fee at the mid-market rate. That is why the only fair comparison is the bottom line: how much of the destination currency the recipient actually receives for your pounds. That single figure captures both the fee and the margin at once.
Side by side
| Specialist service | Bank transfer | |
|---|---|---|
| Exchange rate | Usually at or very close to the mid-market rate | Often a margin of a few percent built into the rate |
| Upfront fee | Low and clearly shown, sometimes zero | Flat international-transfer fee, sometimes plus SWIFT charges |
| Total cost on a typical transfer | Generally lower once the rate margin is counted | Generally higher, driven by the rate margin |
| Speed | Minutes to ~2 working days | ~2–5 working days via SWIFT |
| Payout in local currency | Common — avoids a second conversion abroad | Often converts at the receiving bank |
| Best for | Routine personal remittances, getting the most to family | Large/one-off transfers, negotiated rates, niche destinations |
General patterns, not a guarantee for any specific provider or transfer. Rates and fees change constantly — always compare the live total on the day you send.
Specialist providers
Services such as Wise, Revolut and Remitly built their business on converting close to the mid-market rate with a transparent fee, and many pay out directly in the destination currency. We don't earn commission on these names and don't rank them — they are examples of the category. Always compare the live received amount for your corridor and amount.
When your bank still makes sense
- Very large or one-off transfers where the bank offers a negotiated rate.
- Payments that must originate from a specific account for compliance or audit reasons.
- Destinations a specialist provider does not serve.
- When you value the simplicity of staying inside your existing banking app.
Work out what you can actually send
Before choosing a provider, work out your real UK take-home pay and what it is worth in your home currency.
Convert your UK salary to your home currency →