How to get the best exchange rates: Five tips to maximise your currency transfers

Why getting the best exchange rates is important

If you need to send money overseas, getting the best exchange rates can make a huge difference to how much you get for your transfers.

The exchange rates between some banks and FX providers can differ by as much as 2%, while the market can fluctuate by 5% in a matter of months.

The more money you’re transferring, the bigger the impact. For example, a 5% difference in the GBP/EUR exchange rate on a transfer of £100,000 could mean you received around €6,000 less.

In this article, we’ll look at five ways to help you get the best currency exchange rates when you need to send money abroad. It covers practical tips, such as timing your transfer, along with the options and services available. We’ll also answer some FAQs about getting the best rates.

Five smart ways to get the best exchange rates

1. Use a specialist money transfer service

Many people wonder whether banks give better exchange rates. The short answer? Generally not.

The key is understanding the mid-market or interbank rate. This is the ‘real’ or wholesale exchange rate you see on Google or in currency charts, and it’s the rate that banks and providers base their rates on.

All currency providers add a margin or fee to this rate (it’s how they make their money), but banks often apply wider margins to the exchange rate and charge additional fees for international transfers.

In contrast, specialist currency providers typically offer more competitive rates and lower fees.

Specialist money transfer services also offer other benefits that can help you get the best exchange rates, like tailored support and money-saving tools such as forward contracts.

2. Watch the market and time your transfer

When it comes to getting the best exchange rates, timing is everything. Currency markets are constantly moving, and the value of your transfer can shift significantly in a short period.

For example, between January and April 2025, the GBP/USD exchange rate rose from around $1.21 to $1.34, meaning a $10,000 transfer to the UK would have been worth £700 less in April than in January.

That’s why one of the smartest ways to get a strong exchange rate is to time your transfer for when the market is in your favour.

Specialist FX providers offer helpful tools to support this. With a rate alert, you can set a target rate and receive an automatic notification if the market hits your desired level. At Currencies Direct, we also provide daily market updates, weekly forecasts, and real-time alerts during major economic events so you’re never caught off guard. Your dedicated account manager can even talk you through the latest trends and help you decide when to make your move.

You can also keep yourself informed by checking live exchange rates, following economic calendars, and keeping an eye on the news – particularly around interest rate decisions, political developments, or economic data releases that can shake the markets.

3. Lock in the best exchange rates with tools like forward contracts

If you’re serious about getting the best exchange rates, it’s worth looking beyond timing alone and using the tools that currency specialists provide to help you make the most of market movements.

As mentioned above, rate alerts are a simple yet effective way to target a better rate. Another similar tool to help you get the best exchange rate is a limit order. This automatically triggers a transfer when your target rate is reached – ideal if you’re not in a rush and want to wait for the market to move in your favour.

For those planning a large transfer, such as an overseas property purchase or tuition payment, forward contracts can be especially valuable. They allow you to lock in today’s exchange rate for a future transfer. If the market moves against you after you’ve agreed the rate, your funds are protected. However, it’s also crucial to note that you won’t benefit if the exchange rate improves.

By combining timing with smart tools like these, you can boost your chances of getting the best exchange rates and avoid the pitfalls of last-minute or poorly timed transfers.

4. Avoid hidden fees and unexpected charges

Even with the best exchange rate, hidden costs can still take a bite out of your transfer. These often come in the form of flat fees, receiving bank charges, or intermediary costs when money is passed between banks – all of which can reduce the final amount your recipient receives.

One common issue is receiving bank fees. These are charges applied by the recipient’s bank simply for handling the incoming payment, and they’re especially common with large international transfers. Similarly, if your provider doesn’t hold accounts in the destination country, your funds might be routed through multiple banks, and each one may apply its own fee.

Specialist currency providers can offer more control and transparency here. For example, holding funds on account can help you time your transfer to avoid local banking fees or coordinate with the recipient. And with access to experienced account managers, you can get a clearer picture of the possible charges at each stage of the transfer, potentially helping you to reduce or avoid them.

If you’re moving money to Spain, you could also benefit from our exclusive partnership with CaixaBank. Spanish banks often charge up to 1.2% on large payments. By working with Currencies Direct, you can avoid these fees entirely, potentially saving thousands on a single transaction.

5. Transfer larger amounts less frequently

Our final tip for getting the best exchange rates is a simple one: consider sending larger amounts less often.

Currency providers often offer better exchange rates for higher-value transfers, so combining multiple smaller payments into one bulk transfer can give you more currency for your money. On top of that, you’ll reduce the number of fees you pay overall (if you choose a provider that applies transfer fees), which can make a significant difference over time.

This approach can be particularly effective if you’re transferring funds for regular commitments such as overseas mortgage payments, tuition fees, or living expenses. With the support of a currency specialist, you can also explore tools like forward contracts or buy currency in advance and hold it in a secure digital wallet, giving you even greater flexibility and control.

Ultimately, transferring larger amounts less frequently can help you save money, simplify your transfers, and secure more favourable exchange rates over time.

If you want to find out more about how specialist services and expert insights can help you get the best exchange rates, get in touch with us today. Or you can open a free account and talk through your options with an account manager.

FAQs about getting the best exchange rates

Where can you get the best exchange rate?

Specialist currency providers typically offer the best exchange rates compared to banks or high street bureaus. That’s because they operate with lower margins and fewer overheads, allowing them to pass more value on to you. By using a provider that offers live rates and transparent pricing, you can avoid hidden markups and get more for your money.

What is the best way to transfer money abroad?

The best way to transfer money abroad is to use a reputable money transfer service that offers competitive exchange rates, low (or no) fees, and tools like rate alerts or forward contracts. This gives you greater control over when and how you send your money – and can help you save significantly compared to using a traditional bank.

How do exchange rates work?

An exchange rate is the price of one currency in relation to another – for example, how many euros you get for one pound. Rates are determined by supply and demand in the foreign exchange (FX) market, and they’re constantly changing due to factors like interest rates, inflation, economic data, and geopolitical events. Most providers apply a margin to the mid-market rate (the wholesale exchange rate), so the rate you get may vary depending on who you use.

Is now a good time to exchange currency?

That depends on the currencies involved and current market conditions. Exchange rates can move quickly in response to news, interest rate changes, or political events. If you’re not sure when to make a transfer, working with a currency specialist can help – they can keep you informed of market trends and help you decide whether to act now or wait for a more favourable rate.

How can I avoid hidden fees when transferring money abroad?

To avoid hidden fees, choose a provider with transparent pricing and ask whether there are any charges for sending or receiving funds. Also check whether your money will be routed through intermediary banks, which can result in extra costs. Specialist currency services often offer fee-free transfers and more clarity about the total cost of your transfer.