5 tips to get the best exchange rates

Published 06 May 2026

If you need to send money overseas, getting the best exchange rates can make a huge difference to how much you get for your transfers.

The exchange rates between some banks and FX providers can differ by as much as 2%, while the market can fluctuate by 5% in a matter of months.

The more money you’re transferring, the bigger the impact. For example, a 5% difference in the GBP/EUR exchange rate on a transfer of £100,000 could mean you received around €6,000 less.

Five smart ways to get the best exchange rates

1. Use a specialist money transfer service

Many people wonder whether banks give better exchange rates. The short answer? Generally not.

The key is understanding the mid-market or interbank rate. This is the ‘real’ or wholesale exchange rate you see on Google or in currency charts, and it’s the rate that banks and providers base their rates on.

All currency providers add a margin or fee to this rate (it’s how they make their money), but banks often apply wider margins to the exchange rate and charge additional fees for international transfers.

In contrast, specialist currency providers typically offer more competitive rates and lower fees.

2. Watch the market and time your transfer

When it comes to getting the best exchange rates, timing is everything. Currency markets are constantly moving, and the value of your transfer can shift significantly in a short period. That’s why one of the smartest ways to get a strong exchange rate is to time your transfer for when the market is in your favour. Specialist FX providers offer helpful tools to support this. With a rate alert, you can set a target rate and receive an automatic notification if the market hits your desired level.

3. Lock in the best exchange rates with tools like forward contracts

If you’re serious about getting the best exchange rates, it’s worth looking beyond timing alone and using the tools that currency specialists provide to help you make the most of market movements.

As mentioned above, rate alerts are a simple yet effective way to target a better rate. Another similar tool to help you get the best exchange rate is a limit order. This automatically triggers a transfer when your target rate is reached – ideal if you’re not in a rush and want to wait for the market to move in your favour.

For those planning a large transfer, such as an overseas property purchase or tuition payment, forward contracts can be especially valuable. They allow you to lock in today’s exchange rate for a future transfer. If the market moves against you after you’ve agreed the rate, your funds are protected. However, it’s also crucial to note that you won’t benefit if the exchange rate improves.

4. Avoid hidden fees and unexpected charges

Even with the best exchange rate, hidden costs can still take a bite out of your transfer. These often come in the form of flat fees, receiving bank charges, or intermediary costs when money is passed between banks – all of which can reduce the final amount your recipient receives.

One common issue is receiving bank fees. These are charges applied by the recipient’s bank simply for handling the incoming payment, and they’re especially common with large international transfers. Similarly, if your provider doesn’t hold accounts in the destination country, your funds might be routed through multiple banks, and each one may apply its own fee.

Specialist currency providers can offer more control and transparency here. For example, holding funds on account can help you time your transfer to avoid local banking fees or coordinate with the recipient. And with access to experienced account managers, you can get a clearer picture of the possible charges at each stage of the transfer, potentially helping you to reduce or avoid them.

5. Transfer larger amounts less frequently

Our final tip for getting the best exchange rates is a simple one: consider sending larger amounts less often.

Currency providers often offer better exchange rates for higher-value transfers, so combining multiple smaller payments into one bulk transfer can give you more currency for your money. On top of that, you’ll reduce the number of fees you pay overall (if you choose a provider that applies transfer fees), which can make a significant difference over time.