Sending Money Abroad: How to Find the True Cost Before You Transfer

What does it really cost to send money abroad? Not just the fee you see on the screen. The true cost is the fee plus the gap between the exchange rate you get and the real market rate. The simplest way to find it is to ask one question: exactly how much will my family receive in their own currency? Then compare that number across two or three providers before every transfer.

This matters because a "zero-fee" offer can turn out to be the most expensive one if the provider quietly takes its cut through the exchange rate.

Why it's worth two minutes of your time

According to Saudi Central Bank (SAMA) data reported in the press, expatriate workers living in Saudi Arabia sent about SAR 165.5 billion (roughly $44 billion) abroad in 2025, the highest annual total on record and up from about SAR 144.2 billion in 2024. A big share of people's salaries passes through banks and transfer companies every month.

The World Bank's Remittance Prices Worldwide database tracks what it costs to send $200 around the world. In its latest data (Q3 2025), the global average cost was 6.36% of the amount sent, more than $12 out of every $200. Digital transfers were cheaper on average (4.59%), while banks remained the most expensive type of provider. The UN target for 2030 is a cost of no more than 3%.

The gap between 3% and 6% looks small on one transfer. But it repeats every month, for years.

Where the cost of a transfer comes from

1. The visible fee

A flat amount or percentage shown before you confirm, such as SAR 15 or SAR 25. This part is easy to compare.

2. The exchange-rate margin (the hidden part)

Every currency pair has a mid-market rate, the one you see on search engines and currency sites. Providers usually give you a slightly worse rate and keep the difference. If your rate is 2% below the market rate, you pay an extra 2% even when the fee is "zero."

3. Fees on the receiving end

Sometimes the recipient's bank or an intermediary bank deducts a charge on arrival, especially with international bank wires. Ask about it before you send.

How to compare before every transfer

1. Check the market rate first. Look up the rate for your currency against your family's currency before opening any app. The Saudi riyal is pegged to the US dollar at 3.75 and the UAE dirham at 3.6725, so both move against other currencies in step with the dollar.
2. Get two or three quotes for the same amount. From your bank's app, a licensed money transfer company and a digital app if one serves your route. Note each time: the fee, the rate and the final amount your family will receive.
3. Work out the total cost. Take (what would arrive at the market rate − what will actually arrive) and divide it by what would arrive at the market rate. That is the real percentage you're paying.
4. Bundle small transfers. Flat fees eat small transfers. Sending SAR 2,000 once is usually cheaper than SAR 500 four times, if your family's situation allows it.
5. Use licensed providers only. Stick to banks, exchange houses and transfer companies licensed by your country's central bank (SAMA in Saudi Arabia, the Central Bank of the UAE in the Emirates); both publish lists of licensed institutions. Sending money through unlicensed people or networks breaks the rules and leaves you with no protection if the money disappears.
6. Keep the receipt and the reference number. Double-check the recipient's name and account number character by character. A misdirected international transfer can be hard to recover.

Is a bank always a bad choice?

Not necessarily. A bank transfer can make sense for large amounts, such as university fees or a property payment, when you want a clear, documented trail between two accounts. Some banks also offer competitive rates on particular routes. The rule is the same either way: compare the amount that will be received, and don't assume any one provider is always the cheapest.

A worked example: three offers to send SAR 2,000

Suppose you send SAR 2,000 (about $533) home every month and have three offers in front of you (hypothetical numbers for illustration only):

The "zero fee" offer isn't the cheapest here. And the gap between offer A and offer C is SAR 20 a month, or SAR 240 a year that reaches your family instead of the provider, just because you compared before pressing "send."

Common mistakes to avoid

• Judging by the fee alone. Always look at the amount that will be received.
• Sending at the last minute. Rushing makes you accept the first offer. Plan the transfer around payday and make it a fixed line in your budget, as in the 50/30/20 budget rule.
• Trying to time the exchange rate. Waiting weeks for a "better rate" might gain you a little or lose you some. If your family needs the money, what matters most is that it arrives on time at the lowest cost.
• Trusting "special rate" messages. Texts or WhatsApp offers far better than the market rate are a common scam. Read our guide to spotting bank fraud before it empties your account.
• Sending every riyal left over. Many people send everything and keep nothing for themselves. Set aside part for your own emergency fund, because a crisis for you quickly becomes a crisis for your family too. To decide how much to send, write your financial goals with numbers and dates.

The bottom line

• The true cost of a transfer = fee + exchange-rate margin + any receiving fees.
• Always compare the amount your family will receive across two or three providers, not the fee alone.
• The global average cost is about 6.36% in the World Bank's latest data, and digital transfers are cheaper on average.
• This week: check the market rate, get three quotes for your next transfer, work out the percentage and choose a licensed provider.

Sources: World Bank, Remittance Prices Worldwide, Enterprise, Kantipur, citing SAMA, Saudi Central Bank, Central Bank of the UAE.