The best money transfer platforms offer low fees, transparent prices, and some nifty features.
When you need to send money home to loved ones, banks may be one of the first options that pop into your mind. Sure, banks offer robust networks and security in getting your funds where they are needed.
However, such services often incur fees, charges, and surcharges, some of which may not even be known.
As a result, every time you send money overseas, you may lose some of your hard-earned money. Just think about how useful that extra cash will be for your family.
Fortunately, there are alternative platforms that allow you to securely transfer your money without expensive fees and hidden surcharges. Some of them even offer useful benefits that can save you further money.
Here are the five best Singapore money transfer services that you should check out the next time your siblings have to pay their school fees.
Five best money transfer platforms in Singapore
| fees | Transfer amounts | Transfer money to | Transmission speed | Perks | |
| wise | 0.44 percent to 3.11 percent |
|
Bank account | Same day to three working days |
|
| Western Union | Varies | Online: Up to $ 1,000 daily, $ 3,000 weekly, or $ 6,000 monthly | Cash, bank account or mobile wallet | Same day to five working days |
|
| Instarem | 0.25 percent to one percent |
|
Bank account | Same day to three working days | Earn reward points when you make transactions |
| Revol | Up to two percent plus 0.5 percent according to the monthly exchange limit |
|
|
Three to five working days | Virtual debit card |
| SingX | 0.25 percent to one percent | Up to one million SGD, however individual limit values may apply for different countries | Bank account | One to two working days | No cost of receiving money |
Above, we have summarized the key features and characteristics of five popular money transfer platforms in Singapore. When deciding which platform would make the cut, we attached great importance to fees, transparency and user friendliness.
Note that while we try to be extremely precise, we should use the data in the table as a guide, rather than the truth of the gospel. This applies in particular to information such as fees, which can change depending on the transfer amount or special circumstances.
We strongly recommend getting a quote or comparison round before transferring, especially as these transactions are usually quick and potentially irreversible.
With that said, let’s take a closer look at each of these platforms.
Founded with the goal of lowering international money transfer fees, Wise prides itself on its transparency and low fees.
Using the website and app, you can quickly and easily get a quote for your transfer, clearly specifying the fees in advance – all without having to sign up for an account.
The platform couples its conversion rates to SME rates and adds fees between 0.35 percent and one percent per transfer. There is no minimum transfer amount, but each currency has its own maximum transfer limit.
Wise is quick; Transactions for major currencies can be completed within hours. Otherwise, most transactions will be completed within 3 working days or less.
When you sign up, you will also receive a free Debit Mastercard linked to a multi-currency account that allows you to hold up to 50 currencies. You also get a local bank account for select currencies that allows you to receive money with no fees.
Your Debit Mastercard also lets you spend like a local and withdraw up to SGD 350 from overseas ATMs every 30 days without paying any bank fees.
Who is Wise best for: Digital nomads and savvy travelers who are looking for affordable, transparent fees and fast service, as well as practical travel benefits.
The most “traditional” money transfer service on the list, Western Union (WU), may claim to be a less intimidating alternative to the seedy-looking transfer densities typically found in Chinatown or the meandering, boisterous lines of Lucky Plaza.
Although the prices are not advertised or published, you can easily look up how much your intended money transfer plus fees will cost you on the website or app. WU claims it makes money on exchange rates (read: they put their own premium) so you may not get the absolute cheapest rates.
However, WU offers the greatest flexibility in terms of how your recipient can receive the money: you can choose between bank transfer, mobile wallet or cash payment.
Another benefit is the presence of physical counters where you can send (and receive) money, be it by credit card, debit card, or cash.
Who is Western Union best for: Workers who want a transparent, no-hassle option to send money home, especially when cash terms are the preferred option for recipients.
Instarem is another platform on which the “low-fee” card is played. It offers international money transfers between 0.25 and 1 percent. In addition, it offers instant or same-day transfer speeds that could seal the deal right away for some people out there.
If you want to transact frequently, you’re in luck. Instarem has a rewards program that you can use to collect points when you transfer funds. Successful recommendations also earn you points. These can be exchanged for a small discount when making transfers, which essentially offsets the transfer fees incurred.
A standout feature of Instarem would be the ability to set an exchange rate. Once your transaction has been submitted in the app, you have a certain amount of time to deposit the required funds before the transfer takes place.
Note that this grace period varies from country to country and ranges from one hour to 12 days.
Who is Instarem best for: People who make frequent international money transfers and want fast transactions.
ALSO READ: 4 Ways New Regulations Reduce Risk For Digital Financial Services Users In Singapore
As the name suggests, Revolut is about revolutionizing your relationship with money.
With the Multi-Fangled banking and finance platform, not only can you send money to bank accounts worldwide, but you can also send money instantly if your recipient is also a Revolut user. That’s right, we’re talking about peer-to-peer instant transfer.
Your Revolut account also acts as a financial tracker with analytics and budgets for you to set.
To complete the futuristic look, you can also apply for virtual debit cards, which expire after a single use to protect yourself from dodgy merchants. (You can always generate more debit cards for later purchases).
What about fees? Well, Revolut offers three levels of subscription, with the lowest level being free.
This is where things get a little confusing: depending on the currency you’re exchanging and the day you’re making your exchange, you can be subject to a surcharge of up to two percent.
Additionally, you will be charged an additional 0.5 percent if you exceed your total monthly exchange limit (including fiat currency and digital currency such as crypto).
The other two paid plans ($ 9.90 / month and $ 19.90 / month) have no monthly exchange limit.
Due to its unconventional fee structure, it can be difficult to say whether Revolut offers good value as a wire transfer platform.
Who is Revolut Best for: Digital natives looking for a convenient, instant peer-to-peer money transfer.
SingX is a domestic money transfer platform that promises low fees and transparency. The unique selling point of SingX is that it guarantees that there are no fees for your recipient to receive the money.
Don’t overlook this seemingly small detail. Banks often charge a fee to receive your transfer, and while remittance platforms attempt to absorb that fee, they may not always do so.
This bank fee is deducted from the amount that is spent on your recipient, creating another money sink that reduces your monthly contribution to your family.
However, SingX has set it up so that instead of a cross-border transaction, your recipient will receive the money as a local transaction with no additional fees.
The service fees are also attractive. The premium ranges from 0.24 to 1 percent, with typical transactions being around the 0.5 percent mark.
Who is SingX best for: Anyone who wants to avoid additional bank fees when sending money.
How do I send money overseas?
You can send your money overseas through banks or transfer platforms. For the latter, make sure they are licensed and regulated by the Monetary Authority of Singapore!
If you already have an online banking account with your bank, it may be more convenient to transfer money using your bank’s online banking transfer option, although it may not be the cheapest option out there.
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However, you can also use transfer platforms to transfer money overseas quickly and easily.
You can even give traditional banks a run for their money as there are generally fewer fees and charges – and more transparency – associated with using their services.
In order to be able to use the services of the transfer platforms in general, you must first create an account with the transfer platform of your choice and then transfer the money from your bank account to the transfer company.
In some cases, you can also transfer money from your debit or credit card. Note that if you want to transfer cold hard money in its physical form, you need to do so in a physical branch and that not all transfer platforms offer this option.
Banks versus remittance platforms: which is better?
Transfer platforms are generally cheaper than banks, especially if you want to transfer smaller amounts of money.
Many of them only apply a margin to your exchange rate or charge a fee per transfer, unlike banks, which often add a variety of other fees and charges, in addition to a less favorable exchange rate.
When choosing between wire transfer services, consider factors such as sending and receiving fees, exchange rates, processing time, minimum transfer amounts, countries you can transfer to, ease of use, or even perks like the ability to track transactions or the presence of a game guarantee prize.
This article was first published on SingSaver.com.sg.
