The 5 Rules to International Money Transfer

You can easily save hundreds, if not thousands of dollars by using an international money transfer company or P2P service to transfer your money overseas.

Transumo makes it simple to safely transfer money at much lower cost to banks.

But that’s not all

To help you get the most money from point A to point B in the least stressful way – we suggest you follow 5 simple rules.


  1. Security
  2. Avoid problems – Choose a Suitable Service
  3. Understand ALL the costs – knowing where hidden fees and shopping around can save you a bundle
  4. Check timing (if it is right for you)
  5. Test run your money

Paypal SecurityRule #1 – Security

Everyone is concerned about using a service and their money disappearing into thin air. Yes there are scams and services designed to keep your money rather than move it. Usually these involve transfers where cash is picked up at the destination, but in some very rare circumstances fraudulent companies are set up with the sole purpose of stealing your money.

The best car safety device is a rear-view mirror with a cop in it.
– Dudley Moore

Funny enough, when you are transferring money you kind of want that cop in your rear-view mirror.

To do this is actually pretty simple.

Ultimate Security: To ensure security we have one simple rule, we only consider services that meet very strict criteria like capital requirements, a physical presence and identification verification procedures. Fortunately financial regulators in countries like UK, Australia, Canada or USA mean that you are more than covered. The reason is that by virtue of meeting the regulations in these countries you can be confident they have met the needs of regulators who demand the highest level of security and safety.

Interestingly there are some other significant benefits too, which we will explain.

Live in another country?

Even if you live in any other country, using services that are registered in at least one of these countries is the easiest way be confident your money is safe.

Tip to Save MoneyRule #2 – Choose a Suitable Service

Easy Savings: It is true you can save 2 to 4 percent simply by not using your bank.

Now you simply need to chose a service that meets your needs.

The main factors are:

  • The countries they operate (for service and local bank accounts – not just security)
  • Internet or phone based services
  • Minimum amounts you can transact
  • Fees and best rates

Here is our list of recommend services by country with all the important information you need.

winnerRule #3 – Shop Around

“Consumers have not been told effectively enough that they have huge power and that purchasing and shopping involve a moral choice.”
– Anita Roddick

Banks aside, if you have a large amount (over $7k USD) we found you can negotiate better rates. We also found you will see the best rates when you are already registered and the rates get better the more you transact – this can often be all done online but some services are more telephone based. We discuss how you can do this in more detail in our free PDF guide, “3 Secrets to Money Transfer”

time-11-64Rule #4 – Check Timing

You can skip this step if you want and you will still save a bundle.

“The secret of sound investment in 3 words; margin of safety”
– Benjamin Graham

It is no secret that charts can help forex traders, international companies and individuals to save and even make significant amounts of money.

For most people, some simple charts seem too complex.

This does not have to be the case. We shared a simple case study where I saved 10% on just one transaction using some simple charts.

I also showed with another case study how with 5 minutes work I saved 1.3% or $262 on another transaction using currency exchange alerts.

Disclaimer: We are not speculators nor are we registered financial professionals. Seek a registered financial professional before making any decisions.

Be aware of feesRule #5 – Test Run Your Money

We found that regardless of what we say, some people will still use a bank for the perceived safely and simplicity.

To combat this, we have one simple tip.

Tip: Send a small amount to trial a service and see for yourself the security measures and savings.

We have negotiated with all the services on this website to provide extra transfers for free so that you can do this!

Simply choose a service that meets your needs and stop getting fleeced by banks.

The Fees Myth

If you think fees are the most important part of choosing a service – that’s perfectly understandable because that is what banks and other services will lead you to believe.

Fees for over money transfer services are only part of the cost

When you hit that calculate button, you could be forgiven for focusing on the fees charged and not the total cost.

The reality is that the total cost can easily be over 5% of the amount sent overseas in addition to fees.

Maybe 5% does not sound like much but take a look at this. Especially the last column which is the amount the service makes.

Comparison of sending money overseas

Comparing Money Transfer Services Costs

“Amount Made by Service Offered” = Your Total Cost!

In other words, you could get charged $374, $273 or $70 to move $5000 overseas – Its your choice.

Want to know who who I prefer to use for amounts over $7k USD? Less than $7k USD the P2P providers are cheaper although they are very online focused.

Not to say Banks, PayPal or Remittance companies are all bad, in fact in some situations they may be the best way to go and we will let you know when this is the case.

For example, PayPal can be a very good option for sending amounts less then a few hundred dollars and here is why.

Total Cost = Fees + Exchange Rate Difference

Because PayPal has low fees, for small amounts the exchange rate (while a high percentage) means that total costs are low. It also turns out that PayPal is very user friendly and fast too.

But, if you are sending more than a few hundred dollars there are much better ways to send your money because the total costs are way lower.

The funny thing is that the cheaper ways can be faster and potentially safer too while giving you a lot more control over your money. For example, you can lock in an exchange rates or exchange money at a later date at your choosing. Forget costs for a minute, having control can save you hundreds if not thousands.

How to choose a service?

First, congratulations you already know that total cost is what you need to focus on, not just fees.

But there are other important factors to consider – for a start you need confidence your money will arrive. So we have looked into all of these for you so you can make an easy decision.

Other factors that we highlight

  1. Security
  2. Speed of transaction
  3. Ease
  4. Countries you can transact between

Transfer Funds Overseas

(to yourself or another business)


Send Funds Abroad to Another Person

In general, if you are sending money to another person there are a number of services that are designed to best serve your needs. These services are PayPal and remittance companies like Western Union, Moneygram, Xoom and Skrill and are generally best for amounts less than $200.

Alternately if you are an individual wishing to international transfer to yourself or to another business there are services that can better serve your needs. These services include banks and money transfer companies and are most suitable for amounts greater than $200.