Sending money between the UK and abroad: rates, fees and the checks to expect
The fee is rarely the real cost of an international transfer; the exchange rate is, so compare what actually lands in the other account, and check the firm on the FCA register first.
Most Brits abroad move money across borders all the time: a UK pension paid into a local account, rent from a UK flat, savings sent out for a house deposit, the odd sum home for a sister's wedding. It's easy to do. Doing it cheaply and safely takes a bit more thought, and a big transfer needs planning a few weeks ahead.
The short version
- Look at the total cost: any fixed fee, plus the mark-up built into the exchange rate, plus any fees taken by banks along the way. The FCA expects firms to show you all three before you pay [1].
- "No fee" doesn't mean free. The FCA calls it poor practice to market a transfer as zero cost when a mark-up is still built into the rate [1].
- Banks and specialist transfer firms (often authorised payment institutions or e-money institutions) both do the job. Money held by a non-bank firm isn't covered by the Financial Services Compensation Scheme, but it must be safeguarded [2].
- Always check a firm on the FCA's Financial Services Register, and beware clone firms that copy real ones [3].
- For big sums such as a house deposit, expect questions about where the money came from, and leave time for them.
What a transfer really costs
Every international transfer has up to three costs. Some are obvious and some are tucked away.
| Cost | What it is | Where to find it |
|---|---|---|
| Fixed fee | A flat charge per transfer | Usually shown upfront |
| Exchange-rate mark-up | The gap between the rate you get and a reference (mid-market) rate | Compare the rate offered with a reference rate on the day |
| Intermediary and receiving bank fees | Charges taken by banks the payment passes through, or by the receiving bank | Often only visible when less money arrives than expected |
The FCA reviewed how firms price international payments and published its findings in May 2025 [1]. Its examples of good practice include showing you, before you commit:
- the amount you're sending in pounds
- the exchange rate applied, and an explanation if it includes a mark-up
- the mark-up presented as a cost
- any fixed and variable fees, and the total in pounds
- the amount the recipient gets in the local currency
- a warning where intermediary or receiving bank fees may reduce that amount
If a firm can't tell you how much will arrive, that's your cue to ask, or go elsewhere.
Why the rate matters more than the fee
On a small transfer a fixed fee can be the biggest cost. On a large one, the rate dominates. A mark-up of a couple of per cent on a house deposit can easily cost more than every fixed fee you'll pay in a year. The only fair comparison is the final figure: "I send this many pounds; how many euros (or dollars, or dirhams) arrive?"
Banks vs specialist transfer services
There's no single right answer; each has its place. Here's how they tend to compare, in general terms.
Your bank
Pros: It's already set up, you're already verified, and deposits are covered by the Financial Services Compensation Scheme while they sit in the account.
Cons: Banks often build a bigger mark-up into their exchange rates, and international payments may travel through intermediary banks that take a fee on the way. Some banks also limit international payments made through the app.
Specialist transfer services
These are usually non-bank firms authorised by the FCA as payment institutions or e-money institutions. Some offer online transfers at a quoted rate; others offer a dealer service by phone for larger sums, sometimes with the option to fix a rate for a future date.
Pros: Often smaller mark-ups and clearer quotes; some let you hold several currencies.
Cons: Your money isn't protected by the Financial Services Compensation Scheme if the firm fails. Authorised payment and e-money institutions must safeguard customer money, by keeping it in a separate account at a bank or covering it with insurance or a similar guarantee. If a firm fails, you should usually get most of it back, but it may take time and costs can be deducted. Small payment institutions don't have to safeguard at all [2].
We don't recommend any particular bank or firm. Compare a few on the same day, for the same amount, and look at what arrives.
Checking a firm on the FCA register
Every non-bank payment provider serving UK customers must be authorised or registered with the FCA [2]. Before you send a penny:
- Find the legal company name. Firms often trade under a brand. Look in the website footer or the terms and conditions for the operating company's name [2].
- Search the Financial Services Register. Check the firm is authorised and has permission for the service it's offering you [3].
- Check the contact details. The register lists clone firms that pretend to be real ones. Use the phone number and website on the register, not the ones in an email or advert [3].
- Search the FCA Warning List. The register doesn't hold every warning, so the FCA keeps a separate list of firms it has warned about [3].
- Read the safeguarding section of the terms. Find out how your money is protected while the firm holds it.
Large one-off transfers: a house deposit and the like
Big transfers are where planning pays off: buying a home in Portugal, moving the proceeds of a UK house sale, or sending a lump sum to a child back home.
Expect checks
Banks and transfer firms must follow anti-money laundering rules. For a large or unusual payment, expect to be asked where the money came from and what it's for. Have the paperwork ready:
- a completion statement from a UK property sale
- a pension lump sum statement
- bank statements showing savings built up over time
- the purchase contract or a letter from the lawyer or notary in your new country
A payment can be held while the checks are done, so don't send a deposit the day before completion. Leave a week or more if you can, and ask the sending and receiving firms in advance what they'll need.
Practical tips
- Get the details right. International payments need the recipient's full name, IBAN or account number, and the bank's identifier (often a BIC or SWIFT code). Mistakes can be slow and costly to fix.
- Do a small test payment to a new recipient first.
- Ask about fixing the rate if the payment is due weeks away and the amount matters.
- Think about tax. Moving your own money isn't taxable in itself, but the money may have tax history attached, such as a capital gain on a UK property you've sold. Our guide to selling UK property as a non-resident explains the 60-day return. Large gifts have their own rules too: see gifts and inheritances between the UK and abroad.
Scams and your protection
Payment scams love people who are moving house abroad. The classic is an email that looks like it's from your lawyer or estate agent, saying the bank details have changed. Always call the person on a number you already know before sending money to new details.
Since 7 October 2024, UK banks and payment firms have had to reimburse most victims of authorised push payment scams on Faster Payments and CHAPS, up to £85,000 per claim [4]. That scheme covers payments between UK accounts. International transfers fall outside it, so once money has left the UK, recovering it is much harder. That's one more reason to check details twice.
Fancy a second opinion before a big move? Our community groups for Brits abroad are full of people who've sent a deposit before and can tell you which questions to ask.
Sources
- FCA, "Consumer Duty: International payment pricing transparency – good and poor practice" (1 May 2025): https://www.fca.org.uk/publications/good-and-poor-practice/consumer-duty-international-payment-pricing-transparency-good-and-poor-practice
- FCA, "Using payment service providers": https://www.fca.org.uk/consumers/using-payment-service-providers
- FCA, "Financial Services Register": https://www.fca.org.uk/firms/financial-services-register
- Payment Systems Regulator, "PSR confirms its decision on APP scams reimbursement": https://psr.org.uk/news-and-updates/latest-news/news/psr-confirms-its-decision-on-app-scams-reimbursement