Site icon Out of Your Comfort Zone

7 Cheapest Ways to Receive, Send, and Transfer Money from South Korea

South Korea temple

Here are the top ten affordable and user-friendly choices for international money transfers. You can easily calculate shipping costs and the final converted amount before confirming the transfer. These services support over 40 currencies across more than 70 countries, including transactions with the South Korea!

To view the full list directly, click here.

While this subject may not seem directly related to travel, it can be incredibly valuable for individuals who are traveling or have loved ones residing overseas and need to transfer money. Later on, I will explain how this article can be beneficial for travelers and immigrants.

(By the way, if you or someone you know is considering or interested in living abroad, do check out our page featuring 10 alternatives for living abroad.)

 

 

 

Here are some scenarios where you can use the services of some of the companies that will be mentioned below to send money to other countries:

Note that the options listed below are available to individuals from any country worldwide, such as Portugal, the United States, Ireland, Argentina, Spain, and more. So let’s get started!

 

 

 

Important note: Official/spot exchange rate vs. retail/tourist exchange rate

In this article, we will discuss the “wholesale/corporate exchange rate” and the “travel exchange rate”.

To simplify, exchanging money using the wholesale/corporate exchange rate or the closest rate to it is the better option, as it will result in less money lost during currency conversion. The wholesale/corporate exchange rate is used in the financial market where large amounts of money are traded, much like “wholesale” exchange rates.

Most of the companies recommended below use the wholesale/corporate exchange rate or a rate very close to it. We will indicate when they do not.

 

 

In contrast, the travel exchange rate is used when exchanging money at airports, banks, exchange offices, and the like. They use the travel exchange rate because they have more costs and want to earn more from the transaction. This is the worst exchange rate available.

In summary, always try to exchange currencies using the wholesale/corporate exchange rate and not the retail/travel exchange rate. We will indicate which rate each company uses below.

 

How to save money when sending money abroad while traveling?

As you may already know from reading our article on managing money and currency exchange while traveling, using your debit, credit, or prepaid card abroad will result in a 6.38% IOF fee on the value of each transaction. This can add up to a significant amount of money!

The most cost-effective option would be to exchange money in your home country before traveling, purchasing dollars, euros, or other currencies at wholesale rates from banks or exchange offices, and using them while traveling. However, carrying large amounts of cash is not advisable, and the rates used by exchange brokers are usually the travel rate and may not be very attractive, resulting in you losing money during the transaction.

A more economical alternative for travelers is to use one of the options below to send money to family and friends in countries they will be visiting on their trip. This way, when they arrive in that country, they can retrieve the money back in the local currency from acquaintances who received the money from their home country.

For example, let’s say someone is in Brazil and plans to travel to South Korea, where their brother is studying. They can use one of the nine companies below to send money to their brother’s checking account. Their brother can retrieve the money in Dominican pesos and give it back once they arrive in South Korea. This way, they don’t need to exchange money before leaving Brazil or immediately after arriving in South Korea.

Now, let’s explore the nine best and most affordable companies and websites for sending, receiving, and transferring money abroad. But first…

 

What’re the 3 ways you should NEVER send and receive money abroad?

 

#1) BANKS

Many people around the world believe that using a bank to send or receive money internationally is a cost-effective and convenient option. However, this is a widespread misconception!

Sending global transfers through banks can be very expensive! Banks use SWIFT code (or BIC) and IBAN for inbound and outbound global wire transfers, and they take advantage of their customers!

Typically, they charge a percentage of the total transfer amount and a fee that can be almost as much as the transfer itself. On top of that, the exchange rate they offer is unfavorable! If you use a bank to send money to another country, you will most likely end up losing a significant amount of money.

For example, if you use an American bank to send money to a European bank, fees can quickly add up to at least $45 for a single wire transfer, in addition to an unfavorable exchange rate.

Xe (one of the recommended companies below) provides a comprehensive comparison of their rates versus the rates of major banks for global wire transfers (previously known as HiFX, which was acquired).

 

 

And this table gives you an idea of the fees charged by banks for incoming and outgoing international wire transfers…ouch!

 

 

#2) and #3) Western Union or MoneyGram

 

 

 

 

These two well-known companies dominate the global money transfer market. However, their popularity can cause many individuals to overlook cheaper alternatives, leading to unnecessary expenses.

But why should you avoid Western Union and MoneyGram, even though they are widely used by others?

It’s because they:

  • Charge exorbitant fees, taking a significant percentage of the amount you’re sending (for example, MoneyGram charges almost 25% for a $100 transfer, which is a complete ripoff!)
  • Don’t offer online options for sending or receiving money, requiring you to visit their branch personally, and the recipient must do the same
  • Usually use the tourist exchange rate, which is disadvantageous

To summarize, here are the top 3 methods you should avoid when sending money internationally to South Korea:

1) Banks

2) Western Union

3) MoneyGram

 

 

Then what are the cheapest and most practical ways to do international money transfers?

This section will present a selection of cost-effective and user-friendly options that prioritize convenience, accessible through mobile applications and web interfaces. Nonetheless, I strongly advise you to consider all available alternatives and assess which one best fits your requirements for cost-effectiveness.

 

    1. Wise (formerly Transferwise)

Wise, formerly known as TransferWise, was created by the same team who founded Skype, and is widely recognized as one of the most economical and user-friendly options for international money transfers. Personally, it’s my preferred choice and I use it frequently.

To use Wise, all you need is a bank account in the currency of the destination country (note that the account doesn’t necessarily have to be under your name, which makes it a great option for sending money to friends and family).

Simply select the currency and amount you want to transfer (e.g., USD to EUR), enter the amount you wish to transfer (e.g., $1000 USD), and Wise will display the final amount the recipient will receive in euros, including all fees, taxes, and other expenses.

It’s worth noting that Wise uses the official exchange rate provided by Google for all currency conversions, meaning that it always offers the most favorable rate, regardless of the currencies or transfer direction.

Next, complete the required registration information and input the recipient’s bank details (even if it’s your foreign account). Wise generates a bank transfer form to pay the transfer amount, with no additional fees for issuing the slip. You can make the payment at a bank, even if you don’t have an account there, or online via internet banking from your home.

In certain instances, depending on the country of origin, you may also be able to transfer funds to Wise via domestic transfer, debit card, or credit card (though using a credit card incurs an additional charge).

Typically, funds are deposited into the recipient’s account within 1-3 days.

 

 

And notice that the currency exchange rate from Wise is pretty much the same as the official one given by Google!

 

 

Pros of using Wise for international money transfers:

 

By the way, if you want to send money to Spain, Portugal, Ireland, or other countries that use the Euro, the process is the same. All you need is to select Euro when you begin your transfer and then put the info of the bank account in the country receiving the money.

 

*Countries that use the Euro:

Germany, Austria, Belgium, Cyprus, Slovakia, Slovenia, Spain, Estonia, Finland, France, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, The Netherlands, Portugal, Andorra, Monaco, San Marino, the Vatican, Kosovo, Montenegro.

 

Cons of using Wise for international money transfers:

However, if in the country you are in this service is not yet available, an easy way to circumvent this problem is by using the checking account of someone you trust. Here in Sweden, for example, I helped a fellow Brazilian receive money here from his family in Brazil. They transferred the money to my Swedish bank account, I withdrew the money from the ATM and gave it to him.

 

Personal experience with Wise:

I’ve used Wise to send money from the United States to Brazil (which can be done with a credit card!), from the United States to Sweden, from Australia to Sweden, from Australia to Sweden, and from Sweden to the United States. It’s always worked smoothly for me! So, I’d definitely recommend it.

 

If you want to see, here’s a video explaining how Wise works:

 

 

 

    2. Xe

Xe is a prominent platform that facilitates international money transfers. Alongside other options like Wise and CurrencyFair, Xe is a trustworthy alternative for sending and receiving funds across borders.

Moreover, Xe is one of the world’s largest websites for tracking exchange rates between any two currencies, including their historical trends. This feature is particularly useful in determining whether a particular currency is appreciating or depreciating relative to another.

To determine the fees for a transfer, you must first register for a free account with Xe.

It’s worth noting that Xe doesn’t support money transfers to certain countries. Nonetheless, it’s an excellent option for individuals of various nationalities looking to send or receive funds from countries worldwide.

 

 

PROS of using Xe for international money transfers:

You can see which currencies they work with on their homepage here.

And you can easily sign up on Xe for free to check how much you’d save on a transfer.

 

Cons of using Xe to transfer money:

 

My personal experience with Xe: 

Honestly, I’ve never used Xe. But I have a friend who tried using it to send money from the United States to Sweden and she said everything worked just fine and the cost was pretty good. Plus, I use them all the time to check currency exchange rates when I’m traveling overseas. 

 

 

   3. WorldRemit

WorldRemit is headquartered in Brussels and is authorized and regulated by the National Bank of Belgium. The company operates in over 150 countries, including the United States, the United Kingdom, India, Brazil, and various European countries.

WorldRemit supports more than 90 currencies and offers mobile top-up services in over 110 destinations. The company charges minimal exchange and service fees, and the first international money transfer is free of charge.

 

 

Pros of using WorldRemit for international money transfers:

 

Cons of using WorldRemit for international transfers:

 

Personal experience with WorldRemit: WorldRemit really does work at low rates, so it’s worth making a quote through this site and comparing it to others on the list. Also, your first download is completely free!

 

 

   4. Remitly

Remitly has become a major player in the international money transfer sector. Although it began serving only the United States, it has since expanded its services to many other countries around the world.

One of the standout features of Remitly is its ability to transfer money remotely. This means that users can send money to another country and have it delivered in cash to the recipient’s preferred location using Remitly’s delivery service.

In addition to the delivery service, Remitly also provides online transfers to both traditional and digital bank accounts.

 

 

Pros of using Remitly for international money transfers:

 

Cons of using Remitly for international transfers:

 

Personal experience with Remitly:

I’ve never used Remitly, but user feedback is pretty positive. This is really a great option if you need to send money to someone who is not comfortable with technology or if you need cash on hand for a trip, for example.

 

 

    5. CurrencyFair

CurrencyFair’s money transfer process is similar to Wise, but its currency coverage is limited and it does not support certain currencies, such as the Brazilian real, which is a major disadvantage.

 


 

 

Pros of using CurrencyFair for international money transfers:

 

Cons of transferring money with CurrencyFair:

 

Personal experience with CurrencyFair:

I’ve also used CurrencyFair to send money from the United States to Sweden, and it worked just as well as Wise did.

Here’s a quick video on how to sign up for free:

 

 

And how to do a transfer with CurrencyFair:

 

 

 

   6. Instarem

Instarem is a global fintech company that specializes in currency exchange and money transfer services. Established in 2014 in Singapore, it currently operates in over 25 countries worldwide, utilizing advanced technology to provide its customers with efficient, convenient, and cost-effective financial services.

Instarem offers highly competitive rates that are clearly displayed for customers to view. Additionally, it has a rewards program that allows you to earn points whenever you transfer money quickly and with ease from anywhere.

When it comes to travel insurance, Instarem provides a comprehensive range of products that cover medical emergencies, trip cancellations, lost baggage, and other unforeseen events. Its insurance solutions are tailored to meet the unique requirements of each customer and can be easily purchased through its website or mobile app. Furthermore, Instarem collaborates with top insurance providers to ensure that its customers receive the best possible coverage.

 

 

 

Pros of using Instarem for international money transfers:

 

Cons of transferring money with Instarem:

 

Personal experience with Instarem:

Although I have never used Instarem, user feedback is generally very positive. This can be an excellent choice if you need to send someone money!

 

   7.

Established in 1987, Ria is a renowned global money transfer provider with its headquarters situated in the United States. Over the years, Ria has expanded its reach globally, providing wire transfers, bank deposits, and bill payments to its customers.

With a network of more than 436,000 agent locations spread across over 160 countries, Ria aims to provide secure, hassle-free, and cost-effective solutions to households and individuals in need of sending money to their loved ones worldwide.

 

 

Pros of using Ria for international money transfers:

 

Cons of using Ria for international transfers:

 

Personal experience with Ria:

Although I don’t have personal experience with Ria, user feedback is often highly positive. This can be an excellent option if you need to send someone money.

 

 

Bonus: Online International Money Transfer Companies

 

   Bonus 1. TransferGo

TransferGo is a European-based company that specializes in providing international money transfer services to European residents and travelers who need to send money abroad. Their services are available in over 60 countries worldwide, although sending money to Brazil is currently only available for customers with European bank accounts. Despite this limitation, they offer various transfer options and competitive rates to their clients.

TransferGo offers flexibility by allowing customers to transfer money directly from their bank account, debit card, or credit card. Customers can choose between fast transfers, which can be processed in as little as 30 minutes, or low-fee economy transfers, which may take up to three days to complete.

The transfer process is simple and user-friendly, making TransferGo a convenient and hassle-free choice for international money transfers.

When making transfers with TransferGo, you can use this code or coupon: HMSESq

 

 

Pros of using TransferGo for international money transfers:

 

Cons of using TransferGo for international transfers:

 

Personal experience with TransferGo:

If you are looking for a company to transfer money from Europe to the rest of the world, this is a great option. In my experience, the whole process is done very simply and cheaply.

 

 

   Bonus 2. OFX

OFX specializes in providing international money transfer services for individuals and businesses. Established in 1988 in Australia, the company has expanded to numerous countries worldwide, including the US, Canada, the UK, and New Zealand. OFX offers its customers competitive exchange rates and low transfer fees, as well as customized services that cater to their unique requirements.

The company’s main objective is to provide secure, fast, and cost-effective money transfer services, supported by round-the-clock customer support. OFX offers various transfer options, such as wire transfers, recurring transfers, and bill payments, to meet the diverse needs of its customers.

OFX is an ideal choice for people who need to transfer large amounts of money overseas, such as expats, international students, and businesses involved in global trade. The company is renowned for providing exceptional customer service and satisfaction, earning it a reputation as a trusted and reputable player in the international money transfer industry.

 

 

 

   Bonus 3. PayPal

Paypal is a well-known online platform that enables users to make payments and transactions with others. It is commonly used for shopping on eBay and can also be used for international money transfers. However, a drawback of Paypal is that it requires a linked US bank account to withdraw funds.

To work around this limitation, users can use their Paypal balance to make purchases at online retailers that accept Paypal, such as eBay. Another option is to transfer the Paypal balance to another individual.

 

 

Pros of using Paypal for international transfers:

 

Cons of using Paypal for international transfers:

 

Personal experience with Paypal:

I use Paypal directly to buy things on eBay and to receive payments from a few companies that only pay with Paypal. But I don’t use it for international transfers because I think the exchange rate is bad and the options above are better, so it’s up to you.

 

 

BONUS CRIPTO:

How to do international transfers using digital currency

Digital currencies, like Bitcoin, have recently emerged as a new addition to the global financial landscape. However, their popularity is growing rapidly.

A major benefit of cryptocurrencies is their cost-effectiveness for international money transfers compared to conventional methods. Additionally, transactions can be processed in just a few minutes, regardless of where the recipient is located.

 

Consider Coinbase as a feasible choice for international money transfers with cryptocurrencies like Bitcoin. Being the largest cryptocurrency exchange globally, Coinbase is a trustworthy platform to use.

To start, sign up for a free account on Coinbase and provide your personal information. Then, transfer funds from your bank account to your digital wallet and buy your desired cryptocurrency. Coinbase offers three options: Bitcoin, Ethereum, or Litecoin.

After acquiring your preferred cryptocurrency, you can send it to anyone globally with a digital wallet by entering their wallet address and initiating the transfer from your own digital wallet.

When the recipient receives the cryptocurrency, they can exchange it for their local currency, such as Reais, Euros, or Dollars, and transfer the funds to their bank account through the Coinbase platform.

With Coinbase’s user-friendly interface and straightforward process, it is a convenient choice for international money transfers. Additionally, if you want to invest in cryptocurrencies, Coinbase is a dependable option due to its size and reputation.

 

 

 

How to invest in Bitcoins or other digital currencies

In case you decide to retain the digital currencies you bought, you can wait for their value to rise in the future and sell them at a potentially higher price. Nevertheless, it’s crucial to keep in mind that there is no assurance that the currency will appreciate, and in reality, it might even decline in value.

So be careful with investing in digital currencies! Don’t use money that you’ll need in short or midterm!

 

Pros of using cryptocurrency for international transfers through Coinbase:

 

Cons of using cryptocurrency for international transfers through Coinbase:

 

Personal experience with Coinbase:

On a previous occasion, I opted to use digital currencies to pay for an online purchase, as it was more cost-effective compared to using credit cards. I chose to utilize Coinbase to purchase a small amount of Bitcoins and transferred them to the online store. The process was straightforward and the transaction went smoothly.

 

Summing up…

The 7 cheapest ways to receive, send, and transfer money abroad:

  1. Wise
  2. Xe
  3. World Remit
  4. Remitly
  5. Currency Fair
  6. Instarem
  7. Ria
  8. TransferGo
  9. OFX
  10. Paypal
  11. Coinbase

 

In Brief….  

When it comes to sending or receiving money globally, it’s important to do your due diligence and compare various options. By comparing exchange rates, transfer fees, and other factors, you can ensure that you get the most out of your money.

A useful technique to streamline this process is to choose a specific amount, such as $500 USD, and test each option to see which one offers the best value in terms of the amount received. Although this may take some extra time and effort, it can ultimately save you money and help you find the most favorable deal.

 

Protect yourself against fraud and common scams with international money transfers!!

Use only the companies listed above to transfer money to trusted individuals or reputable companies with positive feedback. Do not transfer money to anyone you don’t know personally. Additionally, be cautious if a family member or friend sends you an urgent message requesting money but you are unable to contact them through phone, Skype, WhatsApp, or other reliable means.

 

By paying attention to strange signs like the ones below, you can tell if you’re being the victim of a scam or not….and then avoid it if you are. Think very carefully before making a transfer. If you’re not sure, don’t take the risk!

Don’t send/transfer money to people or companies:

Use only the companies listed above to transfer money to trusted individuals or reputable companies with positive feedback. Do not transfer money to anyone you don’t know personally. Additionally, be cautious if a family member or friend sends you an urgent message requesting money but you are unable to contact them through phone, Skype, WhatsApp, or other reliable means.

 

Conclusion…

As we conclude our conversation, I hope that the information I have provided will help you make secure and affordable international money transfers to South Korea.

If you have any additional questions or require further clarification, please don’t hesitate to leave your queries in the comments section below, and I will respond as soon as possible.

 

Exit mobile version