How much it really costs to send money from Latin America to Europe
Updated · 5 min read
When your family sends you money abroad, the fee you see is only part of the cost. The other part, often bigger, is hidden in the exchange rate.
The two parts of the cost
- Visible fees: what the sending bank, the intermediary banks on the SWIFT network and sometimes the receiving bank charge.
- The exchange-rate spread: the difference between the real market rate and the one you're given. If the market is at 1 USD = 0.93 EUR and you get 0.89, you're paying a hidden cost of around 4%.
An example with numbers
Say 1,000 USD is sent with 35 USD in total fees and a 4% spread, with the market rate at 0.93. About 862 EUR would arrive, when at the real rate it would be about 930 EUR. That's almost 70 EUR lost on one transfer.
Repeated every month over an exchange year, the difference can exceed 800 EUR.
How to compare options
- Look up the day's market exchange rate (for example, on a search engine or a financial site).
- Always ask: “exactly how much arrives in the destination account?”, not just how much the fee is.
- Compare that final amount across banks, money transfer services and apps.
Tips to lose less
- Send larger amounts less often instead of many small transfers, if the fees are fixed.
- Avoid exchanging money at airports: they usually have the worst rates.
- Keep your country's currency regulations in mind; in some cases they limit how and how much you can send. Check with your bank.