Sending money internationally from Australia costs more than most people realise. Australian banks apply a retail exchange rate markup of 3-5% on top of the mid-market rate, plus a flat transfer fee of AUD 10-32. On a AUD 10,000 transfer to USD, the bank’s hidden margin alone costs AUD 300-500. By contrast, specialist transfer services like Wise and OFX use the mid-market rate (or close to it) and charge transparent fees of 0.3-0.7%. On the same AUD 10,000 transfer, Wise would cost approximately AUD 50-70 total — a saving of AUD 250-430. This article compares five transfer methods available to Australian residents in 2026.
How Banks Mark Up Exchange Rates
When you send money through a major Australian bank, the bank does not use the interbank (mid-market) rate you see on Google or XE.com. Instead, it applies a retail spread — typically 1.5-5% depending on the currency pair and amount. For common currencies (USD, EUR, GBP, NZD), the spread is at the lower end (1.5-3%); for less common currencies (PHP, INR, VND), the spread can reach 4-7%. On a AUD 10,000 transfer to VND, the hidden margin alone could exceed AUD 500. Banks also charge a flat transfer fee: CBA charges AUD 22 for international transfers via NetBank, NAB charges AUD 30, and ANZ charges AUD 18 or AUD 32 depending on the destination. These fees are displayed upfront, but the exchange rate markup is not — it is baked into the rate the bank quotes you.
Wise (TransferWise): Best for Small to Medium Transfers
Wise uses the mid-market exchange rate and charges a transparent percentage fee that varies by currency corridor. For AUD to USD, the fee is approximately 0.42% of the transfer amount. For AUD to VND, the fee is approximately 0.55%. There is no flat fee and no minimum transfer. A AUD 5,000 transfer to VND via Wise would cost approximately AUD 27.50 in fees, compared to AUD 150-250 in hidden bank margin on the same amount. Wise transfers to major currencies typically complete within 1-2 business days; transfers to less common currencies may take 2-3 days. Wise also offers a multi-currency account with local bank details in AUD, USD, EUR, GBP, and several other currencies, allowing you to receive money as a local transfer in those currencies.
OFX: Best for Large Transfers (AUD 10,000+)
OFX (formerly OzForex) does not charge a flat fee or percentage fee — it makes money solely on the exchange rate spread, which is typically 0.3-0.8% from the mid-market rate depending on transfer size. OFX is generally the cheapest option for transfers above AUD 10,000, because its lower percentage spread outweighs Wise’s flat percentage structure. OFX requires a minimum transfer of AUD 250 and operates a phone-based deal desk for transfers above AUD 100,000. Transfers typically complete within 1-3 business days. OFX’s major limitation: it does not support all currency pairs that Wise does, and its mobile app experience is less polished.
Revolut: Best for Frequent Small Transfers
Revolut’s Standard plan charges no transfer fee and applies the interbank rate (not a retail rate) for transfers up to AUD 2,000 per month (on weekdays; a 1% markup applies on weekends). Above the monthly limit, a 0.5% fair-usage fee applies. Revolut Premium (AUD 9.99/month) raises the limit to AUD 20,000/month. Revolut is particularly strong for small, frequent transfers — for example, sending AUD 500/month back to family — where the zero-fee structure beats Wise and OFX. However, for single large transfers, the interbank rate combined with the 0.5% surcharge beyond the monthly limit makes Revolut more expensive than Wise or OFX.
Which Service to Use — Decision Table
For transfers under AUD 2,000/month: Revolut (Standard) is cheapest, followed by Wise. For transfers AUD 2,000-10,000: Wise is the best all-round option for cost, speed, and supported currencies. For transfers above AUD 10,000: OFX is generally cheapest, particularly for major currency pairs. For emergency transfers: Revolut and Wise both complete in minutes to hours for major currencies (using debit card funding); bank SWIFT transfers can take 3-5 business days. For receiving money from overseas in AUD: Wise multi-currency account with local AUD details receives fee-free domestic transfers; OFX does not offer a receiving account. Note: all providers require identity verification (passport or driver’s licence) under Australian anti-money laundering (AML) regulations before the first transfer.
FAQ
Q: What is the mid-market rate and why does it matter? A: The mid-market rate is the midpoint between the buy and sell prices of a currency pair on the interbank market. It’s the rate you see on Google or Reuters. No retail customer gets exactly the mid-market rate, but services like Wise and Revolut use it as their baseline, whereas banks typically add a 3-5% spread.
Q: Are online transfer services safe? A: Wise, OFX, and Revolut are all regulated in Australia. Wise holds an Australian Financial Services Licence (AFSL 513764). OFX is listed on the ASX and regulated by ASIC. Revolut holds an AFSL (517237). Customer funds at all three are held in segregated accounts at major Australian banks.
Q: Do I need to report large transfers to the ATO? A: Transfers over AUD 10,000 are automatically reported to AUSTRAC, Australia’s financial intelligence agency, by all financial institutions. This is standard AML reporting and does not mean your transfer is taxable. However, if the funds represent income earned overseas, you may need to declare it on your Australian tax return.
Q: How does TransferWise (Wise) compare to PayPal for international transfers? A: PayPal charges a 5% currency conversion spread plus a flat fee on international transfers. On a AUD 1,000 transfer, PayPal’s total cost would be approximately AUD 50-60 compared to Wise’s AUD 4-5. Do not use PayPal for currency conversion — it is possibly the most expensive option available in Australia.
Q: Can I lock in an exchange rate for a future transfer? A: OFX offers forward contracts for transfers above AUD 10,000, allowing you to lock in an exchange rate for up to 12 months. Wise and Revolut do not offer forward contracts — the rate is determined at the moment of transfer.