Whether you are looking to send money to support friends and family, top up a local bank account or fund a larger purchase, sending money to Australia from the UK can initially seem daunting with all the options available. In this guide, we share how the process works and what you should consider when comparing providers.
What are the options for sending money to Australia?
When sending money to Australia, your first thought might be to send through your local high street bank. Many of these banks may even have introduced a digital mobile app through which you can make the transfer.
However, because banks often use the Swift network to transfer funds across a number of different intermediary banks (known as correspondent banks), this can add additional fees to your transfer and slow down the process, meaning it could take a number of days for your transfer to arrive.
Specialist money transfer providers (or brokers) can often help you transfer money to Australia faster and at a lower price. These companies often use local bank accounts in Australia that use local payment systems to pay out to accounts, removing the need for intermediaries and reducing the cost and time it takes for money to reach its final destination.
Using FXcompared, you can compare the cost of money transfer providers for your chosen transfer, ensuring you get the best possible deal.
What should I look out for when comparing transfer providers
Some of the main factors that you should consider when comparing money transfer providers are below:
Exchange rates and the exchange rate margin
When you send money to Australia, it is converted from GBP to AUD. However, in addition to the mid-market rate (the midpoint between the buying and selling prices of GBP and AUD), the provider will often add an additional rate on top of this, which is their margin. Often this margin won’t be clearly shown, which is why it’s important to compare providers.
A number of factors, including changes in the political climate and economy, can affect the exchange rate for GBP to AUD. It is therefore worth checking the exchange rate before you make your transfer, and keeping an eye out for significant announcements in either country that may lead to the value of one currency changing significantly.
Some money transfer providers may allow you to set alerts for when GBP/AUD rates are more favourable, or use forward contracts that allow you to send money at a later date. For more information on this, read our exchange rates guide.
Transfer fees
Separate to the exchange rate margin, some providers may also add a flat transfer fee to the cost of the transfer, which will usually be shown prior to the transfer. Depending on the amount you send, a provider charging a high fee and a low margin could work out better than sending through a provider with no fee and a high margin, which is another reason why comparing providers for your specific transfer is so important.
Speed
Some providers (e.g. high street banks) may charge more to enable faster transfers – you should factor in this cost versus how urgent the transfer is when making your comparison.
Reliability
When comparing providers, you should always make sure that they are regulated by the UK’s Financial Conduct Authority. It’s also a good idea to look at reviews online to assess others’ experience with the service. FXcompared allows you to compare well-known, trusted providers for your transfer, and you can see our company reviews section to find out more about them.
How to make a transfer to Australia from the UK
The exact process for your transfer to Australia from the UK may vary – however, the process will usually involve some (or all) of the following steps:
- Comparing providers for your transfer amount (which you can do using FXcompared’s comparison tool)
- Registering and verifying your identity with the provider
- Bank details for your recipient (below)
- Choosing your transfer speed and payment method – note that this could change the amount you pay for your transfer
- Complete the transfer and track this through to completion
For transfers to Australia, you will usually need to provide bank details for your recipient:
- A Swift Code/BIC, usually consisting of a combination of letters and numbers, either 8 or 11 characters
- The Bank State Branch number (BSB) is a 6-digit code used to identify the specific financial institution and branch location in Australia
- The bank account number (this identifies the recipient’s specific account)
- The full legal name and street address linked to the recipient’s account
Common mistakes to avoid when making transfers to Australia
There are a number of pitfalls to consider when comparing providers and making your transfer, which we’ve highlighted below.
- Not comparing providers on total cost: Keep in mind that some providers may offer low fees on transfers, but if their exchange rate margin is high this could end up costing more for the total transfer.
- Not considering the exchange rate: Depending on the urgency of your transfer, delaying to send at a later date when the exchange rate is more favourable could save you money, so it is worth taking the time to check.
- Using incorrect details: Make sure that you input the correct details for your transfer, as making an error can lead to delays on your transfer.
Is there a limit on the amount I can send to Australia from the UK?
While there is no limit on the amount you can send to Australia, if you are sending through a bank they may limit the amount you are able to send for a single transfer, often for security reasons. For example, the daily limit for transferring abroad through Natwest is £20,000.
If you are sending larger amounts of money abroad, the impact of exchange rate fluctuations can be much higher, so it’s worth considering whether you want to use a forward contract or spread payments out over a longer period.
Compare money transfer providers with FXcompared
You can use FXcompared to compare trusted money transfer specialists easily. Use our comparison tool to get started today, or read more about sending money to Australia here.
