The main routes to transfer money from abroad

You have three practical ways to move money from a foreign bank account: a wire transfer through your foreign bank, an international money transfer service, or a peer-to-peer payment app. Wire transfers are the slowest and most expensive but work from any bank. Money transfer services like Wise, OFX, or MoneyGram are faster and cheaper for most amounts. Peer-to-peer apps like PayPal or Remitly work if both people have accounts set up, but they have daily limits.

The method you choose depends on how much money you're moving, how fast you need it, and whether you have a US bank account already. If you don't have a US account yet, you'll need to open one first—most banks require proof of a US address or an ITIN (Individual Taxpayer Identification Number) to do this.

Each method has different fees, exchange rates, and delivery times. A wire transfer might take 3 to 7 business days and cost $25 to $50. A money transfer service might take 1 to 3 business days and cost 1 to 3 percent of the amount. The difference adds up quickly on large transfers.

Key Takeaways

  • Wire transfers work from any foreign bank but are slow (3 to 7 days) and expensive ($25 to $50 per transfer).
  • Money transfer services like Wise or OFX are faster (1 to 3 days) and cheaper (1 to 3 percent fee) for most transfers under $10,000.
  • You need a US bank account to receive the money, and most banks require proof of a US address or an ITIN to open one.
  • Exchange rates vary by service—some show you the real rate, others add a hidden markup of 2 to 4 percent.
  • Large transfers ($50,000 or more) may trigger reporting requirements in both your home country and the US.

Wire transfers: the traditional method

A wire transfer is the most direct way to move money from a foreign bank to a US account. You go to your foreign bank, provide your US bank account details (routing number, account number, and SWIFT code), and the bank sends the money electronically. The US bank receives it and deposits it into your account.

Wire transfers work from any bank and don't require a third-party service. However, they are expensive—most foreign banks charge $25 to $50 per outgoing wire, and US banks sometimes charge $10 to $15 to receive it. The exchange rate your foreign bank uses is often 2 to 4 percent worse than the real market rate. A $10,000 transfer can cost $300 to $400 in fees and poor exchange rates combined.

Delivery takes 3 to 7 business days, depending on the banks involved and the countries. Weekends and holidays add time. Once the money leaves your foreign bank, you cannot cancel it, so verify your US account details before you initiate the transfer.

Money transfer services: faster and cheaper for most amounts

Money transfer services like Wise, OFX, Remitly, and WorldRemit are designed for international transfers and are usually faster and cheaper than wire transfers. You create an account online, enter the amount you want to send, and the service shows you the exact fee and exchange rate before you confirm. The money is deducted from your foreign account and deposited into your US account within 1 to 3 business days.

Fees vary by service and amount. Most charge 1 to 3 percent of the transfer amount, plus a small fixed fee ($1 to $5). Wise, for example, charges around 0.5 to 1.5 percent for most transfers. OFX charges 2 to 3 percent. On a $10,000 transfer, you might pay $100 to $300 instead of $300 to $400 with a wire. Exchange rates are usually closer to the real market rate—Wise uses the real mid-market rate with no markup, while others add 1 to 2 percent.

The catch is that you need a US bank account to receive the money, and some services have daily or monthly limits. Wise allows up to $100,000 per transfer for most users. Remitly caps transfers at $2,999 per day. Check the service's limits before you commit to a large transfer.

Peer-to-peer apps and informal methods

Apps like PayPal, Wise, and Remitly also offer peer-to-peer transfers if you know someone in the US with an account. You send money to their account, they withdraw it and give you cash, or they transfer it to your US account. This works for small amounts but has strict daily limits—PayPal limits peer-to-peer transfers to $20,000 per transaction, and Remitly caps daily transfers at $2,999.

Informal methods like asking a friend or family member to wire money on your behalf, or using a local money changer, are risky. Money changers often charge high fees and may not be regulated. If you use someone else's account, the money may be flagged as suspicious activity by the US bank, and both accounts could be frozen while the bank investigates.

Never use cash couriers or hand-carry large amounts of cash across borders. US Customs requires you to declare any amount over $10,000, and failing to do so is a federal crime. The money can be seized, and you may face fines or prosecution.

Opening a US bank account if you don't have one

Most US banks require proof of a US address to open an account. If you don't live in the US yet, you have a few options: use a bank that accepts foreign addresses (some online banks like Wise or Revolut offer US accounts for non-residents), open an account at a bank branch in person once you arrive, or use an ITIN to open an account remotely.

An ITIN is a nine-digit number issued by the IRS for tax purposes. You can get one by filing Form W-7 with the IRS, even if you don't have a Social Security Number. The process takes 4 to 6 weeks. Some banks accept an ITIN and a foreign address as proof of identity, but not all—call ahead to confirm.

If you're moving to the US soon, wait until you arrive and open an account in person. Bring your passport, proof of address (a lease or utility bill), and your ITIN or Social Security Number if you have one. The process takes 15 to 30 minutes, and the account is usually active the same day.

Exchange rates and hidden fees

The exchange rate is where most people lose money on international transfers. The real market rate—called the mid-market rate—changes every second. Your bank or transfer service will use a rate that is slightly worse than the mid-market rate, and they pocket the difference.

Wire transfers through banks often use a rate that is 2 to 4 percent worse than the mid-market rate. Money transfer services vary: Wise uses the real mid-market rate with no markup, while OFX and Remitly add 1 to 2 percent. On a $10,000 transfer at a 3 percent difference, you lose $300 just on the exchange rate.

Before you transfer, check the mid-market rate on Google or XE.com, then ask your bank or service what rate they will use. If they won't tell you until after you send the money, use a different service. Legitimate services show you the exact rate and fee before you confirm.

Reporting requirements for large transfers

If you transfer more than $10,000 in a single transaction, or multiple transfers that add up to more than $10,000 in a calendar year, the US bank must file a Currency Transaction Report (CTR) with the Financial Crimes Enforcement Network (FinCEN). This is routine and not a problem—the bank does it automatically, and you don't need to do anything.

However, if the bank suspects the transfers are structured to avoid reporting (for example, making ten $9,999 transfers instead of one $100,000 transfer), they must file a Suspicious Activity Report (SAR). This can trigger an investigation. Be honest about the source of the money and the reason for the transfer. If you're moving money because you're relocating, changing jobs, or selling property, tell the bank.

Your home country may also have reporting requirements. Many countries require residents to report foreign bank accounts or large transfers to their tax authority. Check with a tax professional in your home country before you transfer money.

Frequently Asked Questions

How long does a wire transfer actually take?

Wire transfers typically take 3 to 7 business days, depending on the banks and countries involved. The sending bank processes it in 1 to 2 days, then it travels through the international banking system (1 to 3 days), and the receiving bank deposits it (1 day). Weekends and holidays add time. Money transfer services are usually faster—1 to 3 business days.

What's the cheapest way to send $5,000?

A money transfer service like Wise costs around $50 to $75 (1 to 1.5 percent fee). A wire transfer costs $25 to $50 in fees plus $300 to $400 in poor exchange rates, totaling $325 to $450. Money transfer services are cheaper for amounts under $50,000.

Can I transfer money if I don't have a US bank account yet?

No, you need a US bank account to receive the money. Open one before you transfer. If you're not in the US, use an online bank that accepts foreign addresses, get an ITIN and call banks to see which ones accept it, or wait until you arrive and open an account in person.

What happens if I give the wrong account number?

If the account number doesn't match the name on the account, the receiving bank will reject the transfer and send the money back to your foreign bank. This takes 5 to 10 business days. Verify the account number, routing number, and account holder name with your US bank before you transfer.

Do I need to report the transfer to the IRS?

The bank reports transfers over $10,000 automatically—you don't need to do anything. However, if the money is income (wages, self-employment, rental income), you must report it on your tax return. If it's a transfer of your own savings, it's not taxable. Consult a tax professional if you're unsure.