Read on Twitter
How much does it really cost to send money internationally? 
That's what I wanted to find out. So I made £1 payments from 12 different bank accounts.
This is a summary of what I found.
THREAD...
That's what I wanted to find out. So I made £1 payments from 12 different bank accounts.
This is a summary of what I found.
THREAD...
2. Firstly, there are 3 types of fee you really need to pay attention to.
Your bank charges you (1&2), and the person you're sending money to has to pay (3).
#fx #fxfees
Your bank charges you (1&2), and the person you're sending money to has to pay (3).
#fx #fxfees
3. The sender fee is normally a flat rate fee, and doesn't change if you send £1 or £1000.
Yes, I actually had to pay these fees to send the money. It cost me £25 to send £1.
Yes, I actually had to pay these fees to send the money. It cost me £25 to send £1.
4. Then you've got the FX rate. This is how much your bank charges you to convert currencies. 
Banks add a fee to the exchange rate. It's the same business model as the currency exchanges in airports.
This was the cost of converting £100 into USD.
Banks add a fee to the exchange rate. It's the same business model as the currency exchanges in airports.
This was the cost of converting £100 into USD.
5. The third fee, the 'foreign exchange fee' is harder to predict. 
When sending money you really have no idea how much the other bank will charge, or if they'll charge at all.
This means that if you send $100 to a friend, they might only receive $95. Gutting, right?
When sending money you really have no idea how much the other bank will charge, or if they'll charge at all.
This means that if you send $100 to a friend, they might only receive $95. Gutting, right?
6. The combination of sender fees + FX fees gives us a much better idea of the real cost of sending money abroad.
This is why so many companies are disrupting the international payment model.
This is why so many companies are disrupting the international payment model.
7. You'd think that given some these fees are so high, banks would tell you about their fees right away. But they don't. 
This is how far I got in each process before I was told about the fees.
This is how far I got in each process before I was told about the fees.
8. If you frequently send money internationally, these charges may change.
Even @RevolutApp isn't free if you send a lot of money abroad.
So do your research, it can save you a lot of money!
Even @RevolutApp isn't free if you send a lot of money abroad.
So do your research, it can save you a lot of money!
9. If you want to read the rest of this article, you can here:
https://builtformars.co.uk/banks/international/
It's totally free and you don't need to disable AdBlocker.
https://builtformars.co.uk/banks/international/
It's totally free and you don't need to disable AdBlocker.
10. And finally, if you enjoyed this content, please retweet this thread. I'd love to break the 1000 followers this week.
Why? Because it'll make me feel like paying hundreds of pounds in transfer fees was worth it.
Cheers,
Peter
Why? Because it'll make me feel like paying hundreds of pounds in transfer fees was worth it.
Cheers,
Peter
11. Would love to hear what some of the challengers of international transfers think, and where their product would rank in this fee breakdown. 
@TransferWise @Azimo @currenciesd @OFX @FairFX @WesternUnion @PagoFx @TorFX
@TransferWise @Azimo @currenciesd @OFX @FairFX @WesternUnion @PagoFx @TorFX
