• In line with Regulation (EU) 2019/518, of 19 March 2019, regarding certain charges on cross-border payments in the Union and currency conversion charges, the currency conversion fee charged by TradeBank for payment transactions is 2.50% of the latest euro foreign exchange reference rate published by the European Central Bank (ECB). Minimum fee €35.
  You can check the ECB reference rates at this link: www.ecb.europa.eu

• The interest rate applied will be the official rate on the day of the transaction for the contracted currency, with a 1% markup.

• The opening fee for credit operations is 2%. Minimum fee €65.

• Commission rate for Standard international transfers within the EEE space: 1.0% and a minimum of €25.

• Commission rate for Express international transfers within the EEE space: 1.5% and a minimum of €50.

• Commission rate for Urgent international transfers within the EEE space: 2.0% and a minimum of €100.

• Commission rate for Standard international transfers outside the EEE space: 2.0% and a minimum of €50.

• Commission rate for Express international transfers outside the EEE space: 2.5% and a minimum of €75.

• Commission rate for Urgent international transfers outside the EEE space: 3.0% and a minimum of €125.

• Incoming domestic (EEE & EFTA): €5.

• Incoming international: €15.

International bank transfer fees: What are they and how much do they cost?

Understanding International Bank Transfer Fees

Whether it’s a global business payment or a personal remittance, money is sent abroad for a variety of reasons. However, unlike a domestic bank transfer, this process isn’t free for the customer. Here we explain why international bank transfer fees are charged and what factors impact the cost.

What is an international bank transfer fee?

International bank transfers are rarely straightforward transactions. Intermediaries are required to get the funds from A to B (or even from A to B to C to D), and several processes need to be completed for the money to arrive safely. As a result, payment providers are likely to charge a fee to customers making international money transfers. This fee covers the cost of payment processing, foreign exchange, deductions, and other charges. In addition to the sender having to pay for these services, the beneficiary recipient is often charged a fee for receiving the money overseas.

What makes up the cost of an international bank transfer fee?

Foreign exchange rates: 

Foreign exchange conversion makes up a significant part of an international bank transfer fee. This rate will not be the same as the interbank exchange rate because individual providers use different rates when buying and selling currency to profit. Effectively, the customer is paying a currency conversion charge on top of the interbank rate – either a flat fee or a percentage of the total amount being received. The rate at the time of the transaction will determine how much the sender pays and the beneficiary receives.

Additional charges:

On top of that, there can be additional discretionary costs that will be factored in, such as overheads and other processing fees that are rarely disclosed to customers.

What factors impact the cost of international bank transfer fees?

Time and speed of transaction: 

The time of the transfer plays a big part. As previously mentioned, the foreign exchange rate changes and can increase or decrease depending on when the sender makes the transaction. International bank transfer fees are also impacted by how soon the beneficiary needs the money. Overseas payments typically take between three and five days, but extra charges will be applied if the parties involved need to speed up the transaction, such as by using a same-day option.

Currencies and countries involved:

Another factor to consider is the currencies involved, as rates will vary depending on which pair of currencies are being processed. Certain locations are also more expensive to send funds to than others, particularly countries lacking modern banking infrastructure and financial technology. The amount of money being transferred may also influence the fees — the more funds being sent, the better the rates are likely to become.

The payment provider:

Ultimately, the biggest factor impacting the cost of international bank transfer fees is the provider being used. Every financial institution has different capabilities that will influence the price of its services. For example, technological limitations may mean a provider has no choice but to rely on legacy systems that are likely to be more expensive. Other providers could be understaffed or operate in an under-resourced area — it’s possible that a transfer between two providers with high fees will still be cheaper than a transfer between low-cost providers in countries with less developed financial infrastructure.

How much does an international bank transfer cost?

Given that there are so many determining factors, there is no such thing as a fixed international bank transfer cost. Country, currency, time, and speed of the transaction must all be taken into account, with rates varying between providers according to their unique capabilities. Therefore, the only way to know how much an international bank transfer costs is to contact the relevant payments provider and find out what they charge to facilitate a specific transaction.

Who offers the cheapest international money transfer fees?

As it’s impossible to give precise price estimates, it’s also impossible to pinpoint which provider offers the cheapest service. This is why it’s so important for consumers and businesses alike to research and compare financial institutions offering cross-border payment services. If not, they could be overpaying to make overseas transactions, and these fees could significantly add up — especially for global businesses and others who send money abroad regularly.

Transparent and Proportional Fees with TradeBank

TradeBank applies transparent and proportional fees to the complexity of the transaction. This ensures that customers are aware of the costs involved and can trust that the fees are fair and reflective of the services provided.