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Whether you have a property, family or business interests in the US, if you want to transfer money from the UK across the Atlantic, you’ll need to find the best way to do it.
It might be tempting to go straight to your bank – but there are quicker and cheaper options for currency transfers.
Before sending money to the US, look at whether a currency broker or multi-currency account might be your best bet. While using PayPal, Western Union or Moneygram might be convenient, these options can be expensive.
Is the pound strong against the dollar?
At the time of writing (June 2024) £1 is worth US$1.27. But it used to be worth a lot more. £1 was worth over $2 just before the global financial crisis in 2008.
Once the crisis started to settle, £1 was typically worth about $1.40 to $1.45. Other major currencies were weak against the dollar in the same time period.
Over the past decade GBP/USD has fluctuated between roughly $1.40 and $1.70. But then the Brexit vote happened in June 2016 and sterling lost a lot of strength against the dollar, falling to about $1.20 overnight. This level now feels about the ‘norm’ for the sterling to dollar rate.
You can find out how many dollars your sterling will buy in real time with our dedicated currency converter.
A weak pound versus the dollar means the purchasing power of the pounds is reduced. For example, as oil is priced in dollars a weak pound can make petrol more expensive.
It is also more expensive for Brits to holiday in the US or buy US exports.
How to compare GBP to USD transfers
Foreign exchange (FX) providers, banks and currency brokers often advertise ‘no fees’ or ‘no commission’ – but you shouldn’t fall for this marketing gimmick. These providers often make their money by offering uncompetitive exchange rates.
When it comes to GBP to USD transfers, the big question is: “After all the fees, how many US dollars will I get for X pounds?” This is the figure you need to use to compare deals.
The same USD is used throughout the US, so it doesn’t matter which state or city you are sending the money to or travelling to. It won’t cost you more to send money to Hawaii than New York, for example.
How much money are you sending to the US?
Some money transfer services state a minimum transaction amount. So, if you only want to send £20 to a friend in the US, you’ll have less choice of providers than if you wanted to buy a holiday home in Florida.
There is not usually an upper limit, but there might be extra checks if you send a large amount of cash.
Is your money safe?
If you use your UK bank or building society to move your money to the US it will be protected by the Financial Services Compensation Scheme (FSCS).
Using a FX or currency broker offers less reassurance, and you may be less protected if things go wrong. Currency brokers can be ‘authorised’ by the Financial Conduct Authority (FCA) or just ‘registered’.
Authorised firms are obliged to keep clients’ money separate from the company’s own funds – this will protect you if the firm goes bust. But with a company that’s just on the FCA register, your cash could theoretically be lost if the company went into administration.
So, it’s best to use an FCA authorised FX firm, rather than one that is just registered.
Do you need a quick transfer?
How quickly you need the money to arrive in the US will influence the service you choose. ‘Same day’ or ‘next day’ services cost more than those that deliver the money in a few days.
What is a currency forward contract?
If you’re planning an investment in the US, you can plan ahead by using a ‘forward contract’ where you fix an exchange rate now but arrange the transfer for a future date. This can be a good option if you think GBP may strengthen against USD in the future.
For example, if you’re buying a property in the US, a foreign exchange (FX) forward contract allows you to fix the property price based on the exchange rate at the time you saw it.
By the time the sale completes, the exchange rate may have fluctuated, but the price you pay is locked in by the forward contract. This could save you a lot of money if the dollar strengthens against the pound.
If the pound strengthens, while you may have technically ‘lost money’, you will have been able to budget for the purchase in GBP and will pay the amount of pounds agreed in the contract.
Ways to send money to the US
Your bank account: Sending money to the US using your UK bank account is easy and convenient, as well as safe. You’ll normally be able to complete the transaction online.
However, using your bank will usually mean paying a fee, and also a poor exchange rate. This means you’ll get less US dollars for your pounds than you might be able to get elsewhere.
The one scenario where using your bank might be a good option is if you have an account with a UK bank that has branches in the US too, such as HSBC or Citibank.
For example, HSBC doesn’t charge fees if you send money from a UK HSBC account to a US HSBC account, while Citibank Global Transfers allows you to transfer money from a Citibank UK account to a Citibank US account.
A multi-currency account: Most major banks, such as Barclays, Natwest, Lloyds and HSBC, offer foreign currency or multi-current accounts, generally for the world’s most used currencies which include both GBP and USD. They allow you to hold money in several currencies at the same time and manage payments in a foreign currency instead of opening a new bank account overseas.
However, most multi-currency accounts tend to be aimed at high net worth individuals or business customers, so not everyone will be eligible.
Electronic money providers: Both Wise (formerly Transferwise) and Revolut offer quick, cheap transfers and are generally a solid choice for international money transfers.
Technically, these e-money providers offer multi-currency accounts similar to those offered by banks. But crucially they are not banks (and customers don’t have FSCS protection for their cash). But the debit cards that come with Wise and Revolut accounts can be a good option for using in the US too.
With Wise you can have both UK bank details and a US routing number and account details. Wise gives users local bank details in 10 currencies, allows you to hold and convert 49 currencies, and use money in 175 countries.
It offers low-cost money transfers using the ‘real’ or mid-market rate, plus a small fee. How much you will pay depends on the country you are in, the currency you are sending and the currency it will arrive in.
Revolut allows you to exchange money instantly in 29 currencies, and offers transparent FX prices, as well as some free bank transfers, and transfers between Revolut accounts are always free.
Starling Bank is another good option for money transfers to the US. It uses the ‘real’ exchange rate and charges a flat fee of 0.4%.You can pay an extra £5.50 for ‘priority’ SWIFT delivery.
Currency broker: A currency broker or specialist FX company is usually best for large transactions such as buying a home abroad. There are loads to choose from including HiFX, Moneycorp, TorFX and IG, for example.
Brokers usually advertise ‘bank beating’ rates (this tends to be true) or ‘no transfer fees’, but the big question is how they compare against one another. To find out, you can either use a FX comparison site or obtain quotes from each company.
Once you choose a broker, you’ll need to open an account. You can carry out the transaction online using a debit card, credit card or bank transfer, and you’ll need the US recipient’s details too.
On the high street: Services such as Moneygram and Western Union have their advantages – but they are not a cheap way to send money from the UK to the US.
These services are handy if you need to pay in cash or if you’re sending money to someone in the US who doesn’t have a bank account – they can pick up the cash in as little as a few minutes in shops. Moneygram also has outlets in Walmart stores.
They can both be a good option, for example, if your child is backpacking and loses their backpack, as you can send them cash quickly.
Both Moneygram and Western Union have a huge network of physical premises in the US, including relatively remote locations. There are more than 17,300 Moneygram branches in the States and more than 42,000 Western Union locations.
However, fees for Western Union or Moneygram can be very high, exchange rates uncompetitive, and maximum limits low.
PayPal: PayPal is an easy option if both you and the recipient in the US both have a PayPal account. But PayPal can be an expensive way to send money abroad as, unfortunately, the foreign conversion rates tend to be uncompetitive.
Frequently Asked Questions
How long does it take to send money to the USA?
The time it takes for your online cash transfer to arrive in the USA will depend on the service you use and the method of online transfer (bank, or card payment, for example).
It’s possible for your cash to arrive at its destination within a matter of hours (although there are often higher fees for faster transfers).
With abank transfer however, the money will be in the receiver’s account on the same day.
How much money can I send online to the USA?
How much money you can send online to the United States will depend on the limit set down by the provider you use. Some providers apply maximum daily or monthly transfer limits, for example.
However, transfer limits can be high, and not all brokers have them.
For very large online transfers (tens of thousands of pounds and higher), be prepared for expect extra ID checks.
How much does it cost to transfer money to the United States?
The cost of online money transfers to the USA will vary depending on a range of factors.
These include the provider or broker you use, the method of transfer (bank transfer or credit card payment, for example), the amount of currency you want to send, and how quickly you want it to arrive.
Bank transfers tend to come with lower fees compared to transfers made by credit card or debit card.
Fees also tend to be higher if you are wiring money to the United States for the receiver to collect in person at a bureau, for example.
Some providers charge flat-rate fees based on the transfer type, while others may charge a percentage fee, based on the value of the transactions.
Other transfer companies might charge a combination of these fees.
Always check the exact charge for your specific transfer before you go ahead.
How can I send money to the USA without charges?
Bank transfers to the USA are fee-free with some online currency specialists, such as Revolut and Western Union, but typically the money will take at least one day to arrive, and it can be longer.
Some providers may offer a ‘free’ online transfer for your first transaction, so it can be worth looking out for introductory deals.
But remember to check the exchange rate you’re getting on your money and compare with other currency transfer services.
Sometimes online transfers with low or zero fees may have less competitive currency rates.
