What's up you guys, sasha here now a lot of people ask me this question all the time in comments pretty much every single video, so i wanted to make a dedicated video for all of those people, which is what is the best way for sending money from The uk abroad now there's lots of different reasons. Either people are sending money to family or sometimes you need to go and pay for some goods or services somewhere or just maybe you got a speeding fine when you were driving through italy. I don't know who could do that kind of thing, but sometimes you need to go and send them money kind of little bit of money to a bank in perugia, for that particular reason anyway, for whatever reason it is that you need to go and send some Money abroad, you might be wondering which option is the best, the cheapest the fastest. Anyway, i'm going to talk to you about the various different options, i'm going to explain exactly what they cost versus each other, exactly how their cost structures work.

But first let me tell you a little bit about the charges. Now there are actually five different charges that exist when sending you money abroad. Although most people probably just think that there's one fee but actually there's a lot more things that you should be considering and number one, you should consider the type of exchange rate used by the platform or the app or the website that you're using because not all Exchange rates are equal, there are different exchange rates and some are much better than others, depending on which one your company uses. So a lot of people will say that they use one type of an inter bank exchange rate, which is going to be the best available rates generally available in the market, and certainly some of the leaders in the space companies like revolut or companies like styling companies.

Like transferwise, they use the interbank rate in general, which is a good thing, but some companies use other ones. Some companies use exchange rates provided by interchanges or some other third parties, and in those cases those exchange rates might actually be much worse and, in effect, you're paying a charge indirectly by taking the worst exchange rate. The second way you get charged is whether that particular exchange is being booked on the spot. So at the point at which you actually go and do the transfer, whether it's being done on an end of day on or the average intraday rate, so there's slightly different ways of doing it.

So, generally speaking, the spot one is going to be the most accurate because, if you're able to go and send the money at exactly the rate that is prevalent right now, you're going to get the correct rate for your transaction, where some people will only book the Transaction at the rate at which it will be either the day before at the close of play. So you you know: if, today the rate is better, you don't get any of that upside or they'll book it on the average rate through the whole of today, because they do all those transactions in batch at the end of the day. So you just need to be aware of that as well. Number three, some providers and i'm not gon na - be talking about most of those providers, because i don't like using providers who do this kind of stuff.

They will add a load on top of the exchange rate and they'll bury that in terms of conditions. So you won't know about it. What this means is they'll say we use the interbank exchange rate, but the actual exchange rate that you will be transferring your money through will be worse and the reason be worse, is they add their own margin as a sort of hidden fee, and you just need To be aware to check if they use the actual rate that they're, quoting or if there is a load on top of that rate, that they're using in order to make some extra money, the four type of fee is the most common. It is the processing fee.

It's called different things and some companies just quote you the one fee, because they have one way of calculating it. Some companies will have a fixed component and a proportional component, depending on how much you're sending that might make it cheaper or more expensive than the other options anyway, and then there is the last one, which is the cash deposit fee. Now this is a sort of indirect fee. It is charged by some of the providers on top of the processing fee and it's basically the cost of getting your money from your account into the platform.

And you just need to be that much more careful to acknowledge the fact that that fee is paid on top of the processing fee in some cases, for example, with paypal. Anyway, there are a lot of options out there, i'm only going to cover the four main ones in this video, because, although azimo currency, fair world remits, remit there's a lot of different options, they do exist. The thing i didn't like about all of those options, including azimo, which is generally topping the tables at the moment, a lot and a lot of people are talking about it - is they have considerably less transparency in their processes and, as a result, i just don't like Recommending them - or i don't want to be talking to people about those, because i just don't feel that those practices are particularly good for the consumer, some of them like azimo, for example. They offer you the first two transfers without any fees, but there's no fee schedule published you can't go and look up exactly where the rate would be if you sent it on their website like with most of the other ones, and they just do this no fee.

Introductory rate so that they can be a top of the charts showing you how good their platform is and then once you begin using it, then all the fees are going to begin coming in down the line. So i don't like that. Lack of transparency and the sort of like the practices, some of these guys employ so i'll talk about the mainstream options that most people will be considering. Let's start with styling styling has become very, very popular with people who like to travel, who, like spending money abroad, because they offer those kind of things for free within europe, and the rates in other places are quite reasonable.

But you can also send money abroad through styling themselves as well. Now styling does charge fees, but those fees are very, very transparent and somewhat reasonable. They charge 0.4 plus a fixed fee which depends on the mode of sending the money that you choose. If you choose swift, which is the more expensive the faster option, the more certain option that will cost you 50 per transaction.

But if you choose the cheaper option, which gets rooted through some local banks and there's some other ways of sending that money through that can cost you as little as 30p. There are two major downsides with styling. The first is that you can only send the money during weekdays when the markets are open and that's when they're able to go and exchange the money in a live environment. So you can't go and do it at weekends and the second downside is they're only working with 38 countries, a lot of them in europe, so some huge countries where a lot of people will want to send their money to like india, australia, russia, canada, brazil, for Example, just some of the big popular countries are not included, so that means you can't send your money to any of those countries through styling, so for all of the providers.

I just did two really simple examples to showcase the differences between sending money abroad. I did a low transaction of just a hundred pounds being sent to italy and a much larger 10 000 pound transaction being sent to the u.s. Just so, you can get a feel for how much those two transactions cost with every provider so that they can be compared now with starling, it's reasonably reasonably cheap, so the hundred pounds being sent to italy is 0.4 fee plus the 30p. So that's a total of 70p cost for sending that money over there and for the 10 000 pound transaction being sent over to the us you're going to be charged 40 pounds 30 pence for sending that across which you know is more expensive.

But it's still hugely cheaper than some of the mainstream options like western union or high street banks, or any of those types of options that people used to use all the time. Anyway. Let's move on to revolut now revolute are quite unique. They are the only ones that offer genuinely free transactions to send money abroad, but there's a huge amount of caveats, there's a huge amount of rules that you need to be aware of, so i just wanted to go and list them so that you know exactly what You're going to be paying now, if you have the account where you're not paying a monthly fee, you're limited to just one free transaction up to a thousand pounds per month and that is to send money abroad outside the sepa zone to any other country.

That revenue deals with after that you're paying 50 p per transaction and there's a few other rules as well. Now, if you send money above the 1 000 limit, you will have to pay a fee and that fee is hidden in the load. So it's not a direct fee that they charge, but the load, so the amount of money you have to pay on top of the exchange rate to make the exchange rate. Worse is gon na be 0.5 percent.

In addition, if you want to send money at the weekend, you'll have to pay another one percent in terms of an extra load that gets baked into the fee, and so, if you're wanting to send money frequently or a larger amount, or something like that, you will Now begin having to pay fees and those fees are, you know, noticeable they're larger at that point than starlings. So if you do pay for the premium or the metal card, you do get benefits like they lift some of those restrictions. You can have unlimited transfers, but you still have to pay for swift transfers and the restrictions are not lifted entirely. So some of these loads, you still are gon na - have to pay, even if you're paying for the very very premium accounts anyway.

So in the two examples i gave, presumably that's the only transactions that month with revolut the 100 pounds being sent to italy is going to be completely free. The transaction to the u.s will cost you 50 pounds so because that transaction is over a thousand pounds. You can't go and send it for free, even if it's your only one and the fees you know they're still quite reasonable, but already they're becoming more expensive than sterling. Now, if you want to send transactions via swift, they do offer that option.

On top of any of the transfers that you make and you can send it for three pounds to the us for five pounds to anywhere else that works for swift. So again, that can be a really good option for some people i'm going to cover. At the end, which option, i think, is the best for which types of people - let's move on to paypal. Paypal is a very, very common platform that so many people, probably one of the most popular platforms out there.

So many people use it to send money abroad, but the value is incredibly bad, so they claim that they charge you five percent up to a maximum of 2.99 in terms of the fee and then they add 2.5 percent above the base exchange rate as a further Fee, but the problem here is that the base exchange rate is still not the same exchange rate that some of the other guys use, and so there's another third fee hidden in that as well and as a result, the rates that they're going to be offering you Are far far worse, so descending 100 pounds over to italy, it will cost you several pounds and to send the 10 000 pounds over to the us is going to cost you as much as 429 pounds and 42 pence. So so, if you are still using paypal for sending money abroad, there are other options available that are going to be considerably cheaper. Last. Let's talk about transferwise transferwise is my personal favorite because of two things: one.

They have an amazing user experience where you can send money to pretty much anywhere and they take take you through exactly what's going to happen. They're super transparent on their fees and they show you exactly what happens at every stage of the transfer. I just simply love the way that they interact with their customers and the transparency of the firm and how clear they are on their pricing, and their pricing is reasonably simple, but also slightly more complicated than some of the others. So what they do is they charge? You a fixed fee plus a percentage-based fee, depending on where you're sending money from and where you're sending the money to.

So in the examples that i'm talking about you're going to be paying 26p plus 0.35 for sending money to italy, for example, or 76p plus 35 basis points, so 0.35 percent uh for sending money to the us to sending the 100 pounds over to italy will cost You just 61 pence, which is a very good rate and sending 10 000 pounds over to the united states, will cost you just 35 pounds and 64 pence, which is an incredibly great value for for that doing that it is the cheapest out of all of these Options so what does this mean, which is the best one out of these and which one is going to be the cheapest, for you, i'm going to tell you which, one, depending on your situation, now, if you're sending a regular payments, let's say you're sending something once A month or you're sending most of it to europe, and most of it is small by far the best option. For you in that case, is the revolut account. The revenue account will allow you to send those payments for free, if you're just doing say one a month and that transaction is under a thousand um you're. Not gon na have to pay any fees whatsoever to use the interbank exchange rate.

It is a really really good deal, so if that's you, revenue is gon na, be the best option. If you like something, really simple, if you like just having one account, so you don't have to open the second one and move your money between them. So then, you have to go and send money from that, etc, etc. You might want to go and get the starting account, because it's the only one where you get a genuine proper current account through a bank which also allows you to send money abroad at a very reasonable rate.

Um, all the others are going to be apps in their own rights that you probably have a current account with, which will be separate. So if you like that simplicity, you can go and get styling plus you get still very. Very good rates - they're not free, like revolut, but they're, very, very good. If you're doing lots of transfers, they in some cases will be better in revolut as well.

Now, if you're doing a lot of transactions, if you're sending a lot of money abroad, say paying for lots of different services or you want to send a very large transaction like you're, buying something very expensive. In that case, it might from my experience and in my personal opinion, transferwise is the best option. Now i use transferwise quite a lot. I've used it for business.

I use it for personal reasons and for last transactions, transferwise wins hands down on that 10. 000 to the us, they were way cheaper than everybody else, just 35 pounds 64 in terms of the fee. So i really like that and on the lower numbers, they're still incredibly reasonable, and what i like about them is it's super transparent. They the fee, is showing to you up front.

It is exactly the same way of calculating it. As for larger transactions, then try to bake in things into the various different components. So i really really like that now what i did just to make it super super simple for you is, i went and did a one-off example where i compared each single one at exactly the same time, trying to send some money abroad, and this is what i Got i sent 100 pounds to dollars and with styling bank i managed to get 128.16 pence now the exchange rate was 1.2907 and i got charged 70p for the privilege with transferwise. I only got 127.65 so a bit less because of their fee structures.

I got a 1.2908 exchange rate of almost exactly the same as we're styling, but i had to pay a one pound and eleven pence fee, which is why i got less dollars in the end with revolut. It was a little bit more finicky. They don't allow you to check the app as easily you actually have to put in the details of the person you're sending the money to before you can get any anything like the rate etc, which i really didn't like, because you can't go and check how much Is actually going to cost you? You have to be 80 of the way through the process before you can actually see the rates and the fees. So i just banged in some random details of a museum in arizona and that managed to do the trick and in the end i managed to get 129.10 pence for my 100 pounds because i didn't have to pay the fee and i got a 1.2912 exchange rate.

So they actually had the best exchange rate out of those, and it could be the difference between the few seconds. It took me to check one versus the other, but i actually think they managed to get a slightly better exchange rate, which is another plus there and there's no fee, because that was the only transaction i was making that month last just for laughs, just as a As a bit of fun at the end, i went and checked with paypal as well and with paypal, the 100 pounds managed to buy me 121.14 pence, which is incredibly poor. We're talking six to eight dollars less than all the other providers are able to offer that these guys are trying to compete with their rate was just 1.2412, which is much much lower. We're talking about almost a five percent difference, plus they charge you a two pound.

99 fee for being able to put money into paper from one of the payment methods, like your bank account, so you can see exactly what the answer is uh, depending on what it is that you wanted to do with it. I hope you found that useful. If you have, please make sure you go and smash that like button for the youtube algorithm, that is so so helpful for a young channel like mine, to be able to reach more people to be able to do more interesting content. So i can grow my audience.

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