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Us frequent travelers, digital nomads, and expats know all too well that transferring money across borders can be a costly and altogether frustrating experience. Hidden fees, unfavorable exchange rates, and long wait times make traditional bank transfers a poor option.
When I first returned from my backpacking trip around South America (beautifully sunburned and terribly broke), I went through my statements and saw that I had racked up over $100 in transfer fees.
But there are better ways.
Enter CurrencyFair — a money transfer service that offers more affordable and efficient ways to send money internationally.
But how does CurrencyFair fare and is it the best option for travelers? In this post we will take a close look at what CurrencyFair has to offer.
The Broke Backpacker is supported by you. Clicking through our links may earn us a small affiliate commission, and that's what allows us to keep producing free content 🙂 Learn more.
What Is CurrencyFair?
Founded in Ireland in 2009, CurrencyFair is an international money transfer platform that initially connected users looking to exchange currencies directly, eliminating the need for banks and intermediaries. This revolutionary peer-to-peer model allowed customers to exchange money at rates better than those offered by big banks or by Oligarchic legacy online transfer services like PayPal.
While CurrencyFair transitioned away from the peer-2-peer model in 2023, it still stands out as a solid choice for low cost, fast and efficient money transfers.
With competitive fees and rapid fast transfers, CurrencyFair has become a firm favorite among expats, remote workers, and travelers who frequently move money between countries.
Best of all though, Broke Backpacker readers can get 5 free CurrencyFair transfers by signing up using the link below.
Key Features for Travelers
- Better Exchange Rates – CurrencyFair offers exchange rates close to the mid-market rate. This can save travelers up to 8% when compared to banks.
- Low Fees – Unlike traditional banks that charge complex, hefty oft hidden transaction fees, CurrencyFair applies a small, transparent fee (typically around €3 per transfer).
- Fast Transfers – Most transactions are resolved within a matter of minutes. This is significantly faster than bank transfers which can take up to a week.
- Multi-Currency Support – Supports over 20 major currencies, making it ideal for international travelers.
- Secure & Regulated – Fully licensed and regulated in multiple jurisdictions, ensuring the safety of transactions.
- Support Centre – Unlike other apps, CurrencyFair operates an experienced and responsive support centre that you can contact in-app, online or by telephone.
How Does It Work?
Getting started with CurrencyFair is pretty straightforward.
1. Sign Up & Verify – Create a free account and the identity verification.
2. Deposit Funds – Transfer money into your CurrencyFair account from your bank account or paypal.
3. Transfer Money – Send the exchanged currency to your recipient’s bank account.
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How Do Money Transfers Work?
Before we go any further, it’s probably taking a bit of a break to look at how money transfers usually work when using banks or traditional financial services institutions.
When you send money overseas using a bank, the process typically follows these steps:
- Currency Exchange by the Bank – Your bank converts your local currency (e.g., USD, GBP) into the foreign currency (e.g., Rupees, Pesos) before transferring the funds.
- Bank-Set Exchange Rate – Instead of using the ahem ‘real’ market exchange rate, banks apply a marked-up rate that allows them to profit from the conversion. This markup rate is usually around 3-5%.
- SWIFT Network Fees – International transfers usually go through the SWIFT banking network, which applies additional processing fees. These can range from a flat £2.75 fee to a percentage of the transfer amount.
- Intermediary Bank Fees – If your bank doesn’t have a direct connection with the recipient’s bank, a third-party intermediary bank processes the transfer, adding more costs.
- Recipient Bank Charges – Once the foreign bank receives the money, they may also charge a handling fee before depositing the remaining funds into the recipient’s account.
For example, if you wanted to send 10,000 Indian Rupees from the UK using HSBC (or First Direct), you might expect to pay around £90.46 based on the mid-market exchange rate. However, due to the bank’s markup, transfer fees, and handling charges, the actual cost will rise to around £95.59 or more — an effective 5% loss in transfer fees.
This is why traditional bank transfers are expensive, and why services like CurrencyFair, which offer more transparent pricing and lower exchange rate markups, are fast becoming popular alternatives. You can read more about general Travel Banking here by the way.
CurrencyFair vs. Wise: How Do They Compare?
Both CurrencyFair and Wise (formerly TransferWise) are leading alternatives to traditional banks for international money transfers. Both are very popular among travellers and freelancers, but they do differ in key ways.
Wise operates on a mid-market exchange rate model with a transparent percentage-based fee, ensuring users get fair rates without hidden markups.
In contrast, CurrencyFair now operates on a more traditional model, offering low fees and competitive rates but without the peer-to-peer exchange feature that once allowed users to set their own exchange rates. While Wise is often faster, CurrencyFair’s fee structure can be more cost-effective for larger transactions.
Additionally, CurrencyFair supports business accounts with batch payment features, whereas Wise is more tailored towards individual and freelancer use.
Ultimately, the choice depends on whether you prefer predictability (Wise) or the competitive but structured rates of CurrencyFair. The good news here though is that you can sign up for both Currencyfair and Wise today free of charge!
Pros and Cons of CurrencyFair
- Lower fees than banks and services like PayPal.
- Excellent exchange rates with the option of setting your own.
- Fast and secure transactions.
- Easy-to-use interface.
- Great for expats, freelancers, and long-term travelers.
- Not available in all countries.
- No instant cash pickup (bank transfers only).
- Limited support for exotic or less common currencies
Who Should Use CurrencyFair?
- Digital Nomads who are looking for a cost-effective way to manage money in multiple currencies.
- Expats who routinely send money home or receive payments internationally.
- Frequent Travelers wanting to avoid high exchange fees at airports or banks.
- Remote Workers & Freelancers who get paid in different currencies, and need the best possible exchange rates.
Final Thoughts: Is CurrencyFair Worth It?
For travelers, expats of Digital Nomads who need to transfer money internationally, CurrencyFair is definitely one of the best options available.
With low fees, competitive exchange rates, and a very easy-to-use platform, it’s a great alternative to traditional bank transfers. While it may not work for those who need instant cash pickups, for bank-to-bank transfers, it’s a truly excellent choice.
So if you’re tired of paying hidden fees and getting poor exchange rates, CurrencyFair is a smart way to keep more money in your pocket while traveling the world.
Rating: 4.5/5
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