In this guide, we aim to demystify the process of sending money from Australia to the UK.
We will provide simple explanations around how to go about it and recommend the most efficient and cost-effective methods available.
We will try to to choose the right (cheapest) provider for an Australia to UK transfer so that you can avoid unnecessary delays, fees, and worries.
We’ll place a particular emphasis on transferring large sums of money from Australia to the UK. This is due to the additional factors that need to be considered in such transactions.
How to transfer money from Australia to UK (without banks)?
Money transfer companies in Australia are ASIC-approved financial service providers that help you exchange foreign exchange (from or to Australian Dollars). They accept your money through a bank transfer in Australia and then able to transfer it across the globe to almost any destination. The actual selection of currencies depends on the company.
Their main selling point is that they are cheaper than banks: no direct transfer fees, and better rates than those offered by banks in Australia (our international money transfer fees research has shown bank spreads in Australia are ~2.5% on average).
Which services support such transfers
These are recommended services that support sending money from Australia to UK or anywhere else in the world. They are the best way in terms of pricing, quality of service and well rounded offering.
Best Way to Transfer from UK to Australia 2023
Based on Security, Speed and Cost; companies operating in Australia and UK
SendPayments: Friendliest Staff and Platform- Best Website - Friendly and Transparent
- Easy to Sign Up and Trade, Excellent On-Boarding Team
- Competitive Exchange Rates for Both Small and Large Transfers
TorFX: Best for Large Transfers and Businesses- Australian Specialists with Local Offices
- 98% Client Satisfaction
- Dedicated Dealer for Transfers above A$5,000
OFX: ASX Traded, Australian Household Name- Australian Company
- Traded Publicly
- 20bn Turnover per Year
Worldfirst: Useful Tool for Online Sellers- Great FX Margins for Businesses
- Authorised by 6 Global Regulators
- Asian Currency Specialists
FlashFX - Innovative, Ripple-Driven, But New- Innovative - Using Ripple Network for Payments
- Solid Customer Reviews (although not many)
- Strong Entrepreneurs with Banking Background
What’s the transfer process with a non-bank?
To send money to UK with a money transfer service all you are required to do is sign up, accept the quote, verify your identity, supply the details of the receiving end of the transfer, and fund it. Everything else will be done instantly
How much money can you save in the process?
You can save up to 80% of the costs you would have paid using a bank.
For starters, let’s look at the currency exchange rates for such a transfer from Australia to UK, involving the Pound to Australian Dollar exchange, and understand the associated savings.
Currency Exchange Rates
AUD to GBP
Current Rate: 0.5198 GBP
Estimated Bank Rate (2.5% markup): 0.5068 GBP
Provider Rate (0.6%): 0.5167 GBP
Indicative rates only. 2.5% was applied as the bank margin and 0.6% as the provider rates, but we don’t guarantee either.
GBP to AUD
Current Rate: 1.9237 AUD
Estimated Bank Rate (2.5% markup): 1.8756 AUD
Provider Rate (0.6%): 1.9122 AUD
Indicative rates only. 2.5% was applied as the bank margin and 0.6% as the provider rates, but we don’t guarantee either.
Example: You could potentially save A$1,900 on a transfer of A$200,000.
Transfer Money From the UK to Australia
Be assured that choosing any of the mentioned providers below will leave you better off than using a bank.
Each one is recognised as a ‘currency expert’. By focusing solely on international money transfers and foreign exchange, these providers excel in their niche.
This specialisation allows them to offer superior services, enjoy lower operational costs, and extend those savings to their clients.
When you interact with a representative from these companies (each assigns a dedicated account manager to clients), you’re consulting with a currency connoisseur, not a generic customer service representative.
You won’t be left waiting for hours; knowledgeable individuals are just a call away and they’ll offer tailored advice on optimal methods for converting AUD to GBP.
Quick Verdict: Best Way to Send Money from Australia to the UK
Now, let’s take a look at the optimal strategies for sending money from Australia to the UK, considering:
- Transfer volume
- Transfer prerequisites
- Risk tolerance
Factor in that these two countries are on the other side of the world from each other, and it’s easy to understand why transfers from Australia can take a little longer.
Though, while you might have to wait a little longer for the transfer to complete, it doesn’t make the process any more complicated.
Indeed, with a few straightforward steps, you can initiate a transfer from Australia and simply sit back and monitor your funds until they arrive in the destination account.
Step 1: Choose a Payment Provider
Getting this right is imperative. It’s going to majorly dictate your costs, the range of options you have to handle exchange rate risk, the speed of the transfer, and, of course, the security of your funds.
And let’s be honest, when you’re moving big bucks from Australia to the UK, these things become even more vital.
In a nutshell, we could say a top-notch international payment provider is marked by four main things; price, diversity of solutions, swiftness, and security.
Cost
First off, we always recommend dodging the banks if you’re looking to keep some extra cash in your pocket.
In fact, our deep dive into the world of international money transfer fees found Australian banks to be, on average, the most expensive in the world.
Commbank proved the worst of all, charging an FX markup equating to 4.81% of the size of your international transfer.
This is the extra bit they charge when you swap currencies, like moving AUD to GBP.
It’s sneakily tucked into the exchange rate and is the quickest way to feel the burn on a currency swap.
Opting for a specialised international money transfer provider, you’re more likely to be looking at fees between 0.1% – 2%, depending on the amount you’re sending.
When you’re transferring hefty amounts from Australia to the UK, the variable fees have a proportionately higher impact. On a transfer of $100,000, a 4.81% in foreign exchange markup means kissing goodbye to $4,810.
If you can, we suggest signing up with a couple of providers to play the field and compare rates.
Companies like TorFX even promise a rate improver guarantee, vowing to match or beat any legit quote from other banks or FX providers.
But, don’t forget, going for the cheapest way to send money overseas isn’t always the wisest. There are other considerations, especially when you’re moving large sums.
Flexible Solutions
Besides the direct fees from your payment provider, the other big player in how much bang for your buck you’ll get is, of course, the exchange rate when you’re swapping AUD to GBP.
The currency market is always in motion, and timing of your trade will have a serious consequence on the amount you end up with.
Let’s look at a recent scenario…
On 23 Sep 2022, the AUDGBP rate was sitting at 0.60. By a few weeks later, it dropped to 0.55 on the 17 Oct 2022. So in less than a month, the rate did a whopping 8.3% downshift
Imagine sending AUD $20,000 to GBP; this could mean getting either £12,000 or £11,000, depending on when you hit the transfer button. A staggering difference.
When you’re sending dollars from Australia to the UK through a bank, you can only access the going exchange rate, aka a ‘spot transfer’.
Currency brokers offer a bunch of FX tools that can either snag you a better rate or shield you if the rate dives.
You don’t need to be a currency expert, you get access to these tools and a dedicated account manager who will run you through your options.
These hedging tools are gaining popularity, especially among individuals and small to medium-sized enterprises moving big sums between Australia and the UK.
Speed
When you’re moving money from Australia to the UK through a bank, it travels by the SWIFT network.
It’s a bit of a relic from the 1970s and it depends on banks having a bunch of middleman banks to connect them and find a path for international payments.
As it is now, you’re looking at T + 2 working days to complete a money transfer from Australia to the UK.
Unlike banks that usually stick to their home turf, international money transfer services operate in several places and have bank accounts in multiple countries.
This means they can take local transfers to settle FX payments and then send the funds to the recipient from a local account.
One trick these money transfer experts may use is to make a local transfer to the recipient as soon as your money hits their account in the sending country, speeding up the transfer big time.
Safety
It’s fair to say that banks are pretty much top-tier when it comes to security.
In Australia, your money’s protected up to $250,000 when it’s held at a bank operating under the Financial Claims Scheme.
Money transfer companies typically do not have a full banking license and are not eligible participants of this scheme.
These firms keep your money in separate safeguarded accounts with banks. So, if your payment provider hits a snag, you should still get most of your cash back.
When you’re moving big bucks, safety becomes even more crucial.
At Money Transfer Comparison, we only recommend regulated and financially sturdy money transfer companies. Currencies Direct has been financially sound since launching in 1996, and TorFX likewise, since it was founded in 2004.
TorFX has been operating in Australia since 2014 and has thousands of positive reviews in its time trading down under.
Behind the UK, Australia has the second-highest number of non-bank money transfer alternatives.
Be sure to narrow your search to only the safest and best rated international money transfer companies in Australia.
Step 2: Register With One or More Providers
Once you’ve made a decision, you’ll need to register with one, or multiple providers.
Onboarding times are generally fast.
Registering takes just a few minutes but verifying your identity will have a slightly longer turnaround. Regulated money transfer companies have a legal obligation to conduct these checks but in many instances it can be done instantly, if not, it shouldn’t take longer than a few hours.
If you’ve opted for a currency broker, take the time to get to know your account manager and learn about what might impact the AUDGBP rate in the near future.
Step 3: Setup Your AUD to GBP Transfer
Once you’ve registered with a provider, you can initiate your international money transfer from Australia to the UK.
Do this online, or by speaking to your personal account manager, if you opted for a currency broker.
Before you accept an exchange rate, why not compare it with at least one or two other providers in the process.
Be sure you’re getting the best deal.
You’ll also need to format the details of the beneficiary when transferring money from Australia to a UK bank account. This includes:
- IBAN Number (This Includes Beneficiary Account Number/Beneficiary Swift Code)
- Beneficiary Address
Step 4: Send your AUD to Settle the Trade
Debit cards and bank transfers are the most common way to settle your deal.
If you’re paying by bank transfer, your provider will tell you which account to pay and what reference you should include.
Be sure to do this correctly so that funds can be easily allocated to your trade and processed ASAP.
What is the Best Way to Send Money to Someone in the UK?
Best For: Service
TorFX, operating in both the UK and Australia, is a currency broker that is fundamentally built on its service-led proposition.
The firm nets a very impressive 4.9 / 5 score on TrustPilot. Thousands of Aussies have rated the service as excellent – a full 5 / 5.
With an office in Australia since 2014, you’ll have direct access to a local, dedicated account manager.
Best For: FX Solutions
Send provides customers with a range of FX tools and supports this with a slick online system which allows experienced customers to manage the process themselves.
Best For: Transferring Large Amounts of Money from Australia to the UK
Given their coverage in both locales, the expertise of their staff and award-winning customer service, we think TorFX is a great option for transferring large amounts of money from Australia to the UK.
The online system is perhaps a bit outdated but their dedicated account management service is completely geared to customers transferring large sums abroad or receiving large sums from abroad.
Best For: Paying Staff
Papaya Global is a world-leading global payroll service. Available across the globe, Papaya Global can assist with facilitating payroll transfers from AUD to GBP, as well as employer of record services in the UK.
What is the Cheapest Way to Send Money from Australia to the UK?
The cheapest way to send money from Australia to the UK depends on how much you’re looking to send.
Cheapest Way to Send Money from UK to Australia > $10,000: Wise
For smaller sums, the ‘DIY’ online transfer companies like Wise are usually your cheapest bet for sending money from Australia to the UK.
You won’t get a currency guru to guide you or access to tools that could snag you a better rate, but their fees are low and clear.
Plus, they are significantly cheaper than banks, who also don’t offer these premium services to individuals and small businesses.
Cheapest Way to Send Money to the UK From Australia > $10,000: TorFX
Currency specialists like TorFX provide better rates when you send larger amounts.
If you’re transferring over $10,000 then it’s more important to compare your options around both the timing of the transfer and the provider you choose.
Summing Up
Based on our extensive research, Australian banks provide the most expensive international payment solutions in the ‘western world’.
Side-step Aussie banks if you want to improve the options you have at your disposal and save on a bunch of fees in the process.
The cheapest way to send money from Australia to the UK depends on how much you’re looking to send and how well you’re able to time your trade with currency fluctuations.
For larger sums, we’ve reached the conclusion that it’s best to use a currency broker. For smaller amounts, online-only money transfer services are probably going to be your best bet.