The best way to transfer large amounts of currency internationally

Key takeaways

• Compare the total cost, not just transfer fees, as exchange rates can make a significant difference to the amount received

• Check transfer limits, delivery times and the ID or source-of-funds documents you may need before sending a large sum

• Use a reputable, FCA-authorised provider and make sure you understand what protections apply to your money

Transferring large sums of money across international borders can be daunting.

Whether you're buying property overseas or conducting business transactions, the process requires careful consideration to ensure you get the best deal possible.

How can I transfer a large amount of money abroad?

You can transfer a large amount of money abroad through your bank or a specialist international money transfer provider.

Banks offer a straightforward option, particularly if you already have an account with them, but fees and exchange rates can vary.

Specialist providers may offer more competitive exchange rates and lower fees, particularly for larger transfers, although you may need to complete additional identity and security checks.

For very large amounts, it can also be possible to negotiate the exchange rate or split the transfer into several payments, depending on the provider and destination.

What is the best way to transfer a large amount of money internationally?

The best way to transfer a large amount of money internationally will depend on the amount, destination and how quickly you need the money to arrive.

For many large transfers, a specialist international money transfer provider can offer better exchange rates and lower fees than a traditional bank.

However, banks can still be a convenient option, particularly if you value simplicity or already have an established relationship with your bank.

Whichever option you choose, compare:

• the exchange rate

• transfer fees

• any charges deducted by the receiving or intermediary bank

A small difference in the rate can make a significant difference when moving a large sum. Also check transfer limits and security requirements.

What are the pros and cons of the different ways to transfer money abroad?

There are advantages and disadvantages to the different ways of moving money abroad, as follows:

Bank transfer

Pros

• Convenient if you already bank with the provider

• Familiar and straightforward to arrange

• Suitable for many international destinations

• Strong security and fraud protections

Cons

• Exchange rates may be less competitive than specialist providers

• Fees can be higher

• Transfer limits may apply

• International transfers can take longer

Specialist money transfer provider

Pros

• Often competitive exchange rates for large transfers

• Fees can be lower than some banks

• Some providers offer dedicated support for large transfers

• May allow you to lock in an exchange rate in advance

Cons

• You may need to register and complete additional identity checks

• Transfer limits vary between providers

• Not all currencies and destinations are supported

• You may be less familiar with the provider

Online payment services

Pros

• Quick and convenient to arrange online

• Easy to send smaller international payments

• Transparent pricing from many providers

• Useful for regular international transfers

Cons

• May not be suitable for very large transfers

• Fees and exchange rates can vary

• Account or transaction limits may apply

• Additional checks may be required for unusually large payments

Is there a maximum amount of money I can transfer abroad?

There is generally no UK-wide maximum limit on the amount of money you can transfer abroad by bank transfer or through a specialist money transfer provider.

However, individual banks and providers may set their own transaction or daily limits. Large payments may also trigger additional identity, security and anti-money-laundering checks, and you may be asked to provide evidence of the source and purpose of the funds.

The rules are different if you physically carry cash abroad. You must declare cash worth £10,000 or more when taking it from Great Britain to another country.

Can the recipient collect a large international money transfer in cash?

Some money transfer services allow the recipient to collect cash from an agent location rather than receiving the money directly into their bank account.

This can be useful when the recipient doesn't have a bank account, although fees and exchange-rate mark-ups can be higher. However, cash collection may not be suitable for very large transfers, as individual providers and agent locations can have their own limits.

How much does it cost to transfer a large amount of money abroad?

The cost of transferring a large amount of money abroad depends on the provider, the currencies involved and the size of the transfer.

You may pay a fixed transfer fee, a percentage-based fee, or no upfront fee, but providers can also make money by adding a margin to the exchange rate.

When comparing options, look at the total amount the recipient will receive, rather than just the advertised transfer fee.

For large transfers, even a small difference in the exchange rate can have a significant impact.

The following example shows why “no fee” doesn’t necessarily mean the cheapest deal.

1. You want to transfer £50,000 to euros.

2. Provider A charges no transfer fee but offers an exchange rate of €1.14 per £1, giving you €57,000.

3. Provider B charges a £50 transfer fee and offers a rate of €1.16 per £1. If the £50 fee is deducted from the £50,000 before conversion, you would receive around €57,942 – almost €942 more than with Provider A.

This shows why it is important to compare the total cost of the transfer, including the exchange rate and all fees, rather than simply choosing the provider with the lowest advertised fee.

What exchange rate will I get?

The exchange rate you get will depend on the provider, the currencies involved and the rate available when you make the transfer.

Banks and money transfer providers typically add a margin to the underlying market exchange rate, meaning the rate you receive may be less favourable than the rate you see online.

For large transfers, even a small difference can have a significant impact, so compare the exchange rate offered alongside any transfer fees or other charges.

Can I lock in an exchange rate – and should I?

Some banks and specialist currency providers allow you to lock in an exchange rate for a future transfer.

This can protect you from an unfavourable currency movement between agreeing the rate and making the payment, which can be particularly useful when transferring a large amount. However, you could miss out if the exchange rate subsequently moves in your favour.

Whether it makes sense depends on your circumstances, how soon you need to transfer the money and how much currency risk you are comfortable taking. The provider may also require a deposit or impose a deadline for completing the transaction.

What should I consider before transferring a large amount of money abroad?

When transferring a large amount of money internationally, it is worth looking beyond the headline transfer fee.

A small difference in the exchange rate or an unexpected charge can have a significant impact when moving tens of thousands of pounds. Consider the following before making your transfer.

What ID and documents will I need to make a large transfer?

Depending on the provider and size of the transfer, you may be asked for:

• Photo ID – such as a passport or driving licence

• Proof of address – such as a recent utility bill or bank statement

• Bank account details – including your account number and sort code

• Recipient details – such as their name, address, IBAN and SWIFT/BIC code

• Proof of source of funds – particularly for large transfers, such as bank statements, payslips, property sale documents or investment statements

• Details of the purpose of the transfer – for example, buying a property, making an investment or transferring savings.

Will I need to prove where the money came from?

Yes, you may need to prove the source of the money when making a large international transfer.

Banks and money transfer providers may ask for evidence as part of identity and anti-money-laundering checks.

Depending on the circumstances, this could include bank statements, payslips, investment statements, inheritance documents or paperwork relating to a property sale.

How long will a large international money transfer take?

The time it takes depends on the provider, currencies, destination and payment method.

Some international transfers can arrive within minutes or hours, while others may take one to five working days.

Large transfers may take longer if additional identity, security or source-of-funds checks are required.

Transfers made at weekends or on bank holidays may also take longer. Before sending the money, check the provider's estimated delivery time and allow extra time if the payment is particularly large or time-sensitive.

Are there any tax implications of transferring money overseas?

Simply transferring your own money from the UK to an overseas bank account does not normally create a tax charge. However, tax may apply depending on where the money came from and what you do with it.

If you are sending money to someone else, the transfer could be treated as a gift. UK inheritance tax rules may be relevant, particularly for large gifts, although there is generally no immediate tax charge for simply making a gift. The recipient's tax position may also depend on the country they live in and its local rules.

If you are transferring a particularly large sum, check the relevant UK and overseas tax rules before making the payment.

Other useful guides

• How do international money transfers work?

• The quickest way to send money overseas

• What is international banking and do you need an international bank account?

Comparing money transfer deals

You can compare competitive business money transfer using our partner FXcompared.

They allow you to tailor your search with details of your transfer, including how much you want to send and where you want to send it.

FXcompared will then ensure you get a choice of free quotes from FCA-regulated providers that help you find the cheapest way to transfer money internationally.