Don’t let them take it from you.

According to the World Bank, Australia is one of the most expensive developed nations for sending money. The only G20 countries getting ripped off more are Japan and South Africa, while Australia is considerably more expensive than the US, UK and Canada.

International money transfer has long been flagged as one of the Australia’s biggest rip-offs and sectors ripe for disruption.

Mozo’s analysis found on average, online international money transfer providers are 5.2 per cent cheaper than the big four banks. Aussies can save more than $500 on a transfer of $10,000 into US dollars, pounds or euros.

The online providers are also quicker, with a turnaround time of one to two days compared with up to five days with the big banks.

“Many Aussies with family, assets or business interests overseas need to send money overseas but they may not realise there are a now a number of specialist money transfer providers offering much more competitive exchange rates and lower fees than the big banks,” said Mozo director Kirsty Lamont.

Mozo compared the cost of transferring $10,000 into US dollars, pounds and euros, and the cost of transferring $US10,000, £10,000 and €10,000 into Australian dollars, taking into account exchange rates and fees.

Mozo says the top three providers across a range of scenarios were TorFX, WorldFirst and CurrencyFair.

Mozo director Kirsty Lamont.Source:News Corp Australia

Transferring $10,000 into US dollars via the big four will net you $US7273 and take up to five days, compared with $7661 via the online players — a saving of $US388, or $511.

For the same amount into pounds, avoiding the big banks would save you £288, or $540. Into euros, the difference was €373, or $559.

Converting $US10,000 into Australian dollars, customers can save $688 by avoiding the banks. On a transfer of €10,000 into Australian dollars the saving would be $860, and on £10,000 the saving would be $1051.

“Our review is great news for people sending money overseas who are sick of paying banks higher fees for the privilege of lacklustre exchange rates,” Ms Lamont said.

According to World Bank data for first quarter of 2016, Aussies are paying an average of 9.5 per cent on a transfer of $US200 compared with an average of 7.61 per cent among G20 countries.

TIPS FOR TRANSFERRING MONEY

• Always compare the exchange rate — this determines the amount of foreign currency you get for your money and can vary between the different providers. Even a few cents’ difference can mean a big difference if you’re dealing with a large sum of money.

• Check the fees — most banks and agencies will charge an extra fee for converting your money into a foreign currency, however some have fixed fees while others charge a percentage of the total money exchanged.

• Transfer speed — the time it takes to process the transfer usually varies from one to five days but you can check with the provider if they can reduce the processing time and whether there will be an additional cost.

• Transfer limits — check whether the provider has a minimum or maximum amount of money that you can transfer at a time or on a monthly basis.

Source: Mozo.com.au