What your bank isn't telling you
Banks are the most expensive way to move money overseas. By far.
When you wire money internationally through your US bank, you pay two costs. First, a flat transfer fee of $40–$50. Second — and this is where the real money disappears — a markup on the exchange rate of 3–6% of the total amount. This markup is invisible: your bank shows you a rate that's simply worse than the real market rate, and pockets the difference.
💰 The annual cost of using your bank vs. a specialist service
That $1,800 annual saving is real money — and for many retirees, it's the equivalent of two or three months of local healthcare costs. The fix takes about 20 minutes to set up once and saves money every month for the rest of your retirement.
Service comparison — 2026
The four services worth using
The right service depends primarily on how much you're transferring. For amounts under $5,000, Wise's transparent fee structure wins. For larger amounts, currency specialists like OFX offer better effective rates with no transfer fee. For regular pension or Social Security transfers, setting up a recurring transfer or forward contract locks in certainty.
Side-by-side
Quick comparison
| Service | Best for | Fee structure | Rate | Min transfer | Phone support |
|---|---|---|---|---|---|
| Wise | Monthly income, small-medium transfers | From 0.43% fee, no markup | Mid-market | No minimum | Yes (24/7) |
| OFX | Large transfers, no-fee preference | No fee, 0.4–1.5% markup | Competitive | $1,000 | Yes (24/7) |
| Xe | Wide coverage, established brand | Varies by corridor | Competitive | No minimum | Yes |
| TorFX | Large one-off, pension, emigration | Rate-based, no fee | Negotiable on large amounts | No minimum | Yes (dedicated) |
| Your bank | Don't use for international transfers | $40–50 fee + 3–6% markup | Marked up | — | Yes |
The smart approach
How to set up your retirement income flow
Set up a recurring transfer in Wise. Transfer your monthly income once a month on a fixed date. The multi-currency account lets you hold funds in USD until the rate is right, then convert. This takes 20 minutes to set up and saves money every month.
Use OFX or TorFX. Both handle transfers with no maximum limit and offer forward contracts — you lock in today's rate for a future payment. For any transfer over $50,000, call a currency specialist before executing; a 0.1% rate improvement on $100,000 is $100 saved in minutes.
If you're receiving a fixed pension or Social Security payment in USD and spending in EUR or another currency, currency fluctuations can meaningfully affect your monthly purchasing power. A forward contract lets you lock in the exchange rate for up to 12 months of future transfers — removing uncertainty from your retirement budget.
How much could you save by moving abroad?
ExpatAce compares cost of living across 102 cities — so you can see exactly how your monthly income translates into purchasing power in each destination. Take the free quiz to find cities where your budget goes furthest.
Take the free quiz →Cost of living by destination
Exchange rates and fees shown are estimates as of April 2026 and change daily. Always confirm current rates directly with the provider before executing a transfer. Nothing on this page constitutes financial or legal advice. ExpatAce is not a licensed financial advisor or money services business. Some links on this page are affiliate links — we may earn a commission at no extra cost to you. This does not affect our recommendations. Our methodology →