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Whether you’re sending money to friends and family, buying a home, or paying a business, there are several ways of getting money from the UK to Australia.
Securing the right option will not only ensure that the funds arrive safely, but that the transfer is also as cost-efficient as possible. Here’s more on how to send money across the world from the UK to Australia.
What are the options for sending money to Australia?
There are multiple options for sending money to Australia and the best method depends on your circumstances and the nature of your transaction. For example:
- How much money you want to send
- The number of transfers you want to make
- How quickly you need money to arrive in Australia.
Each money-transfer option comes with several benefits and drawbacks to consider which we outline in more detail below.
High street banks
Most high street banks offer international money transfer services which allow you to send money abroad. As well as convenience, this option offers security because UK regulated banks protect up to £85,000 per person, per banking institution through the Financial Service Compensation Scheme (FSCS).
You can make an international money transfer at a banking branch, but also online or via a banking app.
However, sending money overseas through your bank is unlikely to be the cheapest option. High street banks typically charge high fees for foreign currency transactions. As an example, Halifax charges a £20 fee for transfers to ‘zone two’ countries (which includes Australia), £12 for ‘zone one’ countries (USA, Canada and non-EEA Europe) and £9.50 elsewhere (with the exception of Ukraine).
Exchange rates (the amount of currency you get for the money you send) at high street banks also tend to be uncompetitive. Some may also charge a loading or ‘margin’ onto its standard exchange rate. This margin varies according to how much you send (the lower the amount, the higher it tends to be).
It can also take up to four or five working days for the funds to become available to the recipient in Australia when making an international transfer via your bank.
On the plus side, minimum transaction amounts at high street banks tend to be lower than specific currency exchange brokers (more on this below). At Lloyds Bank for example the minimum you can send is just £1.01. However, any transfer amount would need to make sense once any fees have been factored in.
High street money transfer services
High street money transfer services, such as Moneygram and Western Union, present another alternative for sending money to Australia.
These methods are often favoured if the sender does not have a bank account from which to make the transfer – or the recipient does not have a bank account in which to receive the funds. That’s because the cash can be handed over (and picked up at the other end) from designated physical collection points, such as shops and newsagents.
However, sending cash via a high street money transfer service can be expensive. Western Union, for example, charges a fee of £44.90 for a cash transfer from the UK to Australia. Make the payment online via Western Union however, and the transfer fees start from as little as £2.99.
Some providers offer promotions which enable new customers to send money abroad online without transfer fees. However, while fee-free transfers may sound appealing, it’s important to ensure that the currency exchange rate is competitive to maximise the value you get.
Check the transfer limits, too. For example, Western Union has a maximum bank account transfer limit of £4,000 for Australia, while at Moneygram it’s around £5,600. However, these limits can be subject to change due to market trends and legal regulations.
In the absence of a bank account, it’s also possible to send cash via high street money transfer services using a prepaid card. Or you can transfer money digitally through a mobile wallet which is linked to a mobile number rather than a bank account. The recipient of the money transfer will also need a mobile wallet with the same transfer service to receive the funds.
Specialist currency brokers
Specialist online currency brokers, such as Fair FX, Currencies Direct, and Corpay, present another option for sending cash overseas. These brokers – which can also be known as foreign exchange or FX brokers – tend to offer more competitive exchange rates and lower fees compared to high street banks and money transfer services.
Transfers to Australia can arrive as soon as the next working day and maximum transfer limits also tend to be high.
However, caution should be exercised around currency brokers that offer ‘no-fee’ or ‘commission-free’ transfers. These deals can hide a very poor currency exchange rate, which could end up costing you more overall.
It can help to use a foreign currency exchange calculator to estimate how much your Australian dollar transfer will cost. These are usually available on the currency broker’s website or app.
Shopping around and comparing different currency exchange deals can help to identify the best value provider for sending money to Australia.
Check the broker is authorised and regulated by the Financial Conduct Authority (FCA) which means it must ring-fence your money away from its other assets. So, although the FSCS scheme won’t apply, your cash is safeguarded. It’s also worth looking at Trustpilot reviews of customers that have previously used the service.
Digital money transfer providers
Digital and app-based money transfer providers, such as Revolut and Wise, offer a digital calculator on their website or app which allows you to view the real-time exchange rates on offer.
All charges are factored into the calculation which can make it easier to compare the overall costs of different providers. However, you will first need to open an account and download the app.
Digital money transfers to Australia can arrive as fast as the next working day. However, the time it takes can depend on the payment method you choose – for example, a bank transfer compared to a credit card. You can track the status of your online transfers in real-time from the app, so you always know where your money is.
Costs of sending cash through these digital providers tend to be more competitive than traditional high street banks and some may offer fee-free transfer. But again, always weigh this up against the exchange rate to get a true overall cost.
While digital money transfer providers can present a cost-effective way to send money abroad, they don’t often have a UK banking licence. This means your money won’t be protected by the FSCS scheme.
However, FCA-regulated brokers must ring-fence your money away from its other assets providing some protection. It’s also worth looking at Trustpilot reviews of customers that have previously used the service.
PayPal (Xoom)
If you have an account, PayPal offers overseas money transfers through its Xoom service. This could be a quick and convenient way to send money to Australia. There are multiple ways to pay through Xoom including a bank transfer through PayPal or with a debit or credit card.
PayPal money transfers are available within minutes and your recipient doesn’t need to have a PayPal account to receive the funds.
You could opt to send money through PayPal for cash pick-up instead. Charges start at around £6.99 for this service. There’s also an option to send the money to an Australian bank account. However, this could take around two working days to arrive.
The maximum amount you can send to Australia in a 24-hour period via Xoom is £21,000 which is around AU $39,360. The maximum cash pick-up transfer limit in a 24-hour period is £2,342 – equivalent to around AU $4,389.
PayPal is regulated and authorised by the FCA as an e-money institution. However, money transfers are not protected under the FSCS scheme. PayPal uses its own ‘Money-back guarantee’ scheme which promises to refund your money if it is not received.
How much money can I send to Australia?
The amount of money you can send to Australia varies depending on the broker or money transfer service you use.
Most providers operate a maximum transfer limit so, if you’re making large transfers, you’ll need to compare options in this regard. Bear in mind that larger money transfers may trigger extra security checks to avoid money laundering and fraudulent transactions.
If you’re hoping to send a smaller amount of money to Australia, there can be fewer options, while fees can be higher.
Is my money transfer safe?
There are multiple safety schemes available to protect your money when sending it abroad. Money transferred overseas through UK regulated banks receive full FSCS protection, subject to the scheme’s terms and conditions.
Services that protect your money under their own safety net scheme also provide compensation. However, it’s important to note that the overall coverage might not be as generous as the £85,000 per-person offered by the FSCS.
Check whether a company is authorised and regulated by the FCA to confirm that it is a legitimate service and has a procedure in place to protect your money if it goes bust. You can do this on the FCA register.
If a transfer provider is not authorised or regulated by the FCA, you could lose your money if the provider goes bust. There is also a greater risk that unauthorised firms could be fraudulent.
Can I set an exchange rate in advance?
FX currency brokers and digital money transfer providers usually allow you to ‘fix in’ an exchange rate in advance under what’s known as a forward contract.
In some cases, this can be up to 24 months, however the term will vary between providers. Some may also base the term of any exchange rate guarantee on the type of currency you want to send.
Forward contracts are typically used for larger currency transfers which are more susceptible to loss if there’s even a slight negative shift in the exchange rate.
Fixing your exchange rate can offer peace of mind and protect your transfer against price movements which could cause a loss. On the flipside however, they also mean you’ll miss out on any increase in the value of your transfer if the exchange rate improves.
