Our price comparisons are based on data collected from other providers' websites on specific dates.
Some providers do not publicly disclose their fees or exchange rates. In such cases, we may act as a customer and use their bank-to-bank transfer service up to the point immediately before payment. We repeat this process using different transfer amounts.
The price comparison table shows the fees a customer would incur when making a transfer through each listed provider.
The following sections explain what the different fields in our price comparison table mean and how they are calculated.
1. Transfer Fees
The "transfer fee" is the fee that a provider states it charges for using its service online. We compare only the cost of online bank-to-bank transfers. Telephone banking, payments made at a branch, and transfers paid for by credit card are usually more expensive.
2. Exchange Rates
The "exchange rate" is an estimated rate for each provider. It is not necessarily the exact rate displayed when we used that provider's service. Because we do not collect every provider's data at exactly the same time, displaying the collected rates directly would not provide a fair comparison. Instead, we estimate each provider's exchange rate using the following method.
First, we calculate the markup applied to each provider's exchange rate.
To obtain this figure, we record the exchange rate offered on the provider's website and check the mid-market exchange rate at the same time. We then calculate the difference between the two figures. For example, if a provider offers a rate of 1.4 while the mid-market rate is 1.6, we record a difference of 0.2, or 12.5%. We refer to this difference as the provider's "markup."
We then subtract each provider's markup from the current mid-market rate.
When you view the comparison table, we check the mid-market rate again. Although data for most providers may have been collected on the same day, data for some providers may have been collected later. We estimate each provider's current exchange rate by applying the previously recorded markup to the latest mid-market rate. Using the example above, if the mid-market rate has changed to 2.0 and the recorded markup is 12.5%, the estimated provider rate shown in the table would be 1.75.
3. How We Compare Exact Amounts That We Have Not Collected
When collecting provider data, we test several different transfer amounts. Acting as a customer, for example, we might go through the transfer process using GBP 100, GBP 500, and GBP 2,000. For some providers, this means the amounts tested during data collection may differ from the amount you are viewing in the comparison table.
This matters because providers often offer better exchange rates and lower transfer fees for larger transfers. If we have not collected data for the exact amount displayed in the comparison table, we review the closest amounts for which data is available, such as an amount immediately above or below the displayed amount. The table then shows the lowest transfer fee and the best exchange rate found among those nearest amounts.
What This Means for You
The transfer fees and exchange rates shown in the comparison table may differ slightly from those currently displayed on each provider's website. In some cases, the comparison table may show more favorable transfer fees or exchange rates than those currently offered by the providers.