If you need to send money abroad from the United Kingdom, it's worth reviewing your options to save time and money. We investigated some leading money transfer companies available in the UK for anyone planning to send money abroad by comparing how much it would cost to send and convert 1,000 British pounds sterling (GBP) from the UK to euros (EUR). Read on to get into the details of each of the money transfer companies we compared.

How much does it cost to send money abroad from the UK?

Money transfer companies operate by charging an additional margin to the currency market exchange rate, transfer fees or a combination of both. For a more detailed look at sending money abroad and what impacts those costs, check out our guide: Sending money abroad: a guide to international money transfers.

CurrencyFair is up to eight times cheaper than sending money abroad with a traditional money transfer provider, like a bank. You can access great exchange rates in the UK from any device, at any time, and send and receive international money transfers in over 20 currencies with a CurrencyFair account.

Some providers hide fees and charges in their exchange rate or make information on them difficult to find on their websites. Others use complicated terms and conditions around their fees. At CurrencyFair, our fee is always just €3 (or currency equivalent), regardless of the amount you're sending. We also empower our customers to choose their own exchange rates on our Marketplace.

Money transfer companies in the UK compared:

• MoneyGram

• PayPal

• Western Union

• Wise

• XE

• XOOM

• CurrencyFair

Using MoneyGram for money transfers from the UK

MoneyGram is a global payment services company that offers online money transfers through its MoneyGram Online (MGO) service. It supports money transfers to over 200 countries and territories, and its fees vary depending on how much you send, where you send it and which payment method you use.

Exchange rate and fees accurate as of: 9:48, 23 March 2022

To exchange 1,000 GBP into euros it offered a rate of 1 GBP = 1.1648 EUR (9:48, 23 March). At this rate, your recipient would get 1,164.85 EUR. To transfer 1,000 EUR using your debit or credit card into the recipient's bank account there are no quoted fees. It does caution that: "The amounts shown are only estimates based on variable exchange rates. Final fees have not been applied."

However, MoneyGram - like all money transfer companies - makes money from currency exchanges. It achieves this through the fee built into the exchange rate you are offered, as well as the service fees that are charged to process your transaction. These fees are calculated using the "Rates and Fees" calculator on its homepage, which offered a fee-free transaction for new customers and did not specify how much those fees would increase to after your first transaction.

Using PayPal for money transfers from the UK

PayPal is a popular digital payment platform that offers money transfers and international payments. Despite its popularity, PayPal is one of the more expensive ways to transfer money abroad. If you want to send money abroad to someone who doesn't have a PayPal account, you'll be redirected to Xoom, a PayPal service for overseas transfers that we elaborate on below.

The PayPal fee structure calculates a currency conversion fee of up to 3% that is adjusted and retained by PayPal in its exchange rates. Then, there is a 1.99 EUR fee for personal transactions between the United Kingdom and Ireland. The PayPal personal payment fee depends not only on the country of the recipient but also on the country of the sender. Learn more with our guide: Avoiding PayPal's Currency Conversion Fees.

To transfer 1,000 GBP from the UK to euros it offered an exchange rate of 1 GBP = 1.1464 EUR (12:34, 23 March), meaning the recipient will receive 1,146.41 EUR.

Exchange rate and fee accurate as of 12:34, 23 March 2022

Using Western Union for money transfers from the UK

Western Union is one of the largest remittance companies in the world, with over 500,000 agent locations. Its exchange rate changes depending on the delivery and payment method you choose. Its fees vary depending on a range of factors, such as the destination country you're sending to, the way you pay for your transfer and the way you want your recipient to get the money.

To send 1,000 GBP from the UK to euros it offered an exchange rate of 1 GBP = 1.1808 EUR (9:30, 23 March). The recipient will get 1,180.77 EUR, with an estimated delivery time being the same day as the transfer

Western Union limits this transfer type to 50,000 GBP per day. When paying for the bigger things in life, such as buying property overseas, paying for education abroad or transferring your savings, this can be at best inconvenient and at worst, unworkable.
Breaking up a large transaction over several days is not only annoying, but it can also end up a lot more expensive thanks to fees getting incurred every time. With CurrencyFair, you can send up to 98,000,000 GBP per transfer from the UK.

Exchange rate and fee accurate as of 9:30, 23 March 2022

Using Wise for money transfers from the UK

Wise is a money transfer provider headquartered in England. Depending on how quickly you need the funds to reach the recipient, you can opt for different tiers of transfer speed with different costs.

To send 1,000 GBP from the UK into euros using a debit card it offered an exchange rate of 1 GBP = 1.20106 EUR (11:21, 23 March), with a 6.67 GBP fee. So 993.33 GBP gets exchanged into 1,193.05 EUR, and should arrive within four hours.

Exchange rate and fee accurate as of 11:21, 23 March 2022

However, its fees can snowball when you send larger amounts and can fluctuate depending on which currencies you're converting. The table below demonstrates how these fees can add up, particularly if you're transferring a large amount.

Fees accurate as of 14:57, 23 March 2022

At CurrencyFair, our €3 (or currency equivalent) fee stays the same, whether you're transferring 100 or 1,000,000.

Using XE for money transfers from the UK

XE is part of the Euronet Worldwide group and forms the third-largest money transfer business in the world. It offered an exchange rate of 1 GBP = 1.1872 EUR (9:38, 23 March). So for 1,000 GBP your recipient will get 1,187.20 EUR with a delivery time of within one day.

Under its FAQs, it states that: "Your money will reach its destination quickly, securely, and with no hidden fees". However, it also states that: "Some money transfers are subject to a small fee", without specifying what transfers are subject to them, and how much they might be.

CurrencyFair's transparent fees are fixed at €3 (or currency equivalent) for transfers from the UK.

Fees and rate accurate as of 9:38, 23 March 2022

Using Xoom for money transfers from the UK

Xoom Corporation was founded in 2001 and acquired by PayPal in 2015. It has its headquarters in San Francisco, California, and operates globally in 160 countries, including the UK. Xoom is a PayPal service that allows you to send money to a recipient's bank account, debit card or mobile wallet.

Exchange rate and fee accurate as of 9:46, 23 March 2022

To transfer 1,000 GBP to euros using Xoom it offered an exchange rate of 1 GBP = 1.1870 EUR (9:46, 23 March). At this rate, your recipient would receive 1,187 EUR. As well as its mark up to the mid-market exchange rate, Xoom's fees vary depending on your transaction type and amount, the payment method and what currency you pay with, the amount of the transaction and which country it's going to. To transfer GBP to euros it charges a 1.99 EUR fee with an estimated delivery time of two and a half hours.

Using CurrencyFair for money transfers from the UK

CurrencyFair was founded in 2009 and offers secure money transfers to over 150 countries and over 20 currencies, including the UK. Our exchange rate of 1 GBP = 1.1970 EUR (9:27, 23 March) includes our €3 fee, meaning when you send 1,000 GBP to euros, the recipient will get 1,194 EUR.

Exchange rate and fee accurate as of 9:27, 23 March 2022

You can choose to send money immediately with our quick, low-cost money transfers, or set your own rate on our Marketplace, and wait for the market to meet it - meaning you could even beat the exchange rate that you see on Google.

Join over 170,000 happy customers who have saved millions with CurrencyFair.

If you're sending money abroad from somewhere else in the world, compare the money transfer providers available in the following countries below:

• Money transfer companies compared: Germany

• Money transfer companies compared: Switzerland

• Money transfer companies compared: Thailand

• Money transfer companies compared: Australia

• Money transfer companies compared: Singapore

• Money transfer companies compared: France

• Money transfer companies compared: Indian rupee

• Money transfer companies compared: the Netherlands

• Money transfer companies compared: Poland

This information is correct as of 23 March 2022. This information is not to be relied on in making a decision with regard to an investment. We strongly recommend that you obtain independent financial advice before making any form of investment or significant financial transaction. This article is purely for general information purposes. Photo by Gonzalo Facello on Unsplash.