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Wise: Is This Still the Cheapest Way to Send Money to Thailand?

Sending money to Thailand from your home country, be it the US, Canada, Australia, or the UK, has been a pain point for just about every expat at one time or another.

But we all have to do it.

The scale of it is huge:

Each year, approximately 7 Billion USD is remitted to Thailand. Among the top sending countries are the USA, Germany, Australia, UK, and Sweden. (Source)

You can bet your bottom dollar a huge amount of that cashflow can be attributed to expats funding their Thai bank accounts, and of course sending money to Thai partners.

We all know banks are generally a rip-off when it comes to sending money, but hiding your money under a mattress isn't exactly a safe bet these days – not that it ever has been.

This sucks. They have us like a puppet on a string; free to slap on big fees and unfair exchange rates when we want to transfer money. When you sit back and think about it, it's the strangest thing: You are charged to withdraw your own money!

Okay, so you are abroad. You expect to pay a small fee, but not for the bank to make a big profit out of it – and believe me, they do.

There is a solution, though, and one myself and thousands of my readers have been using for the last 7 years. It's called Wise, and I'll review the service in a moment, and give you a code to get your first transfer free.

But first, let's look at how the way you're sending money to Thailand is hurting your pocket, how much it is costing you, and why this is happening.

Contents

    1. 4 Ways You Lose on Money Transfers
      1. Bank Transfer Fee
      2. Receiving Fee
      3. Currency Conversion Charge
      4. Transfer Times
    2. Wise Review – Deep Dive
      1. Sending GBP
      2. Sending USD
      3. My Fastest Transfer
    3. Sending Limits
    4. Free Transfer Code
    5. How the Wise System Works
    6. Benefits Summary
    7. FAQ

4 Ways You Lose on Money Transfer to Thailand

1: The Bank Transfer Fee

The SWIFT (international transfer) fee can vary between £10-25 / $15-30, depending on your banking institution. If you engage in frequent transfers, let's say twice a month, this could accumulate to approximately £250 / $320 annually!

Even if you're a client of Bangkok Bank or Kasikorn Bank, both of which maintain overseas branches, including London and LA, evading the international transfer fee is impossible.

Take Bangkok Bank, for instance, which imposes a £20 fee for routing funds to your Thai bank account. Furthermore, you're subjected to an unfavorable exchange rate that means you lose even more money.

At this point, you're already experiencing significant financial losses, and the fees don't stop here. Keep reading.

2: The Receiving Fee

Following the payment of the international transfer fee, you'll encounter a corresponding charge from the receiving bank.

Most banks, such as Bangkok Bank, impose a maximum fee of 500 Baht to receive funds, although it typically amounts to the full 500 Baht, equating to an additional £10 / $16.

Now, you've already incurred two charges in the process of transferring your money, and this is before considering the currency conversion fee.

3: Currency Conversion Charge

Out of the three fees, this is the evil one.

Many individuals assume they receive the mid-market transfer rate, the rate displayed on platforms like XE.com and similar websites. However, when you crunch the numbers, you quickly realize that you've been significantly shortchanged!

In the world's currency markets, traders define the rates at which they are willing to “buy” or “sell” a specific currency. The mid-market rate is simply the midpoint between demand and supply for a currency, and because of that, it changes all the time.

But that's as technical as you need to get. The most important thing to know is that the mid-market rate is considered the fairest exchange rate possible. The mid-market rate isn't a secret either. It's the rate you will find on independent sources such as Google, XE and Yahoo Finance.

Regrettably, you aren't provided with the authentic rate.

This tactic serves as a method to conceal the actual amount being levied. Most banks take the mid-market rate and impose an undisclosed margin, leaving you unaware of the extent of their overcharge.

By embedding the charge within the offered exchange rate, banks generate substantial profits at your cost, and you remain oblivious to the extent of the cost to your pocket.

See the image below for an example of how this works.

money-transfer-comparison

You can mitigate the loss to some extent by opting to send money in your home currency rather than Baht. However, a common mistake made by many sending money to Thailand is choosing to convert to Thai Baht at their source bank rather than at the Thai destination.

This results in an additional loss because your bank takes a substantial portion of cash at their own exchange rate, a rate they arbitrarily set, deviating from the “mid-market rate.”

While the Thai bank will still convert your currency to Thai Baht at an unfavorable rate, it's generally not as harsh on your pockets as the sending bank (your home bank).

4: Transfer Times

So, you've been hit on all fronts, and you're down at least $50-100.

You've borne the brunt of two transfer fees and a currency conversion charge.

Yet, even after multiple dips into your honeypot, the banks can't assure you that the money will be there within 24 or 48 hours.

It's a harsh reality.

In fact, sometimes it stretches to an agonizing 5-7 days!

This is 2024, not 1990. Given the digitized era we live in, the money should be transferred at lightning speed.

And it can be. The method I'm currently using not only sidesteps bank fees but ensures that a transfer can arrive in as little as 9 seconds!

Wise Review: Deep Dive

Sending money to Thailand is expensive, but what other option do you have except the bank?

You could carry money through customs, but then how often do you fly home to be able to do that?

To be honest, I hate carrying a ton of money around with me. It's just not safe.

Western Union is too expensive, but good if you need cash wired immediately.

PayPal steals 3.5% on a transfer and charges up to 4% currency conversion fees. Yes, I said up to 4%. It's 3% for the UK (where I'm from).

+ Enter Wise to Save You Money

Seriously, I waited years for this and, if you read the comments below, you'll see how chuffed others have been to find this service.

You can now transfer money to Thailand with ZERO bank charges, get the Mid-Market Rate currency conversion, and only pay a small fee, which is more than made up for on the overall cost savings.

Sending GBP to Thailand with Wise

Have a look at this transaction where I saved over £58.

wise-conversion-rate-GBP

Here's a comparison of other money transfer services and banks at the exact same time.  look at the bank transfer rates of four high-street banks. Wise beats them both, comfortably.

The exchange rate is lower and the fees higher than Wise.

wise-competitor-rates

Now look at the market rate for the same time of day on XE.com.

Unbelievable, right? The overall Wise rate is actually slightly better!

XE-GBP-Baht-market-rate-wise

So: not only did I get a better rate than my bank, I got a better rate than XE. com, which is the mid-market rate.

But that's not all: I only paid a £6.38 fee.

My bank (Nationwide) charges £20 for an international transfer. Plus I'd have to pay 500 Baht (£12 at the current exchange rate) to my receiving bank in Thailand.

So altogether, with the favorable exchange rate, I saved over £50 with Wise compared with a transfer from my home bank.

Sending USD to Thailand with Wise

For my friends from the USA, here's how things size up in Dollars. I couldn't see competitor rates this time, probably because I was using my UK-based account.

transferwise-bank-comparisons

This time the Wise rate is spot on with the Xe.com rate (below).

Usually the rate is the same or slightly better, but note that rates change by the second. The good news is that Wise locks in a rate for you for 2 hours. You can also check Reuters for comparison.

transferwise-US-mid-market-rates

My Fastest Transfer: 9 Seconds to Receive My Money!

61% of Wise transfers are instant and completed in under 20 seconds.

This is really impressive. Just recently I sent some USD from Wise to an account in Thailand. The transaction time was 9 seconds.

That's insane!

Check out the screenshot below for proof.

wise-transfer-confirmation-2023

Wise Sending Limits

With Wise you can send up to 2 million Thai Baht per transfer.

That's $55,000 ( USD), or £45,500 GBP at the exchange rate at the time of writing.

There is no limit on the number of transfers you can make.

However, unless you are sending to one of the following three banks, you’ll only be allowed to send up to 49,999 Thai Baht per transfer. Though again, there’s no limit on how many transfers you can make.

  1. Bangkok Bank Public Company
  2. Kasikorn Bank
  3. Siam Commercial Bank

For this reason, I always recommend opening a bank account with Bangkok Bank or Kasikorn Bank. These two banks in particular are “foreigner friendly”.

Get Your Free Wise Transfer

I was so over the moon with Wise that I popped off an email and asked if I could get more information on how they circumvent these fees so I could blog here about it (see below on how it works).

They wrote back and offered to give my readers a free transfer up to £1,000/$1,000.

Click that text link above to get the free transfer.

Remember: Banks could charge you up to 5% in hidden costs when sending money to any bank account abroad. Wise is up to 8x cheaper. It's only fair!

How Does Wise Make Sending Money to Thailand So Cheap?

Well, with investments from notable figures like Richard Branson, it seems like anything is possible.

Yet, the concept is quite ingenious.

Once you initiate the transfer, Wise actively searches for others conducting transfers to the same location, facilitating an effective currency swap.

Given the frequency of money transfers, there are usually several matches available, streamlining the process significantly.

My first ever transfer was completed within 24 hours, a notable 2-3 days faster than my bank. Subsequent transfers have been even speedier (as shown above).

In the comments section, there are readers who've received their money in Thailand within minutes, and some, like me, even within seconds. For larger amounts, the process may take a bit longer.

The mechanism operates by executing several individual conversions using market exchange rates that work to your advantage.

For a visual breakdown of how it works, check out this informative video

Quick Benefits Summary

Wise was established with a commitment to providing people with transparency, fairness, and better value in managing their money.

This principle resonates with the majority of us who have long awaited a service of this kind. For too long, banks have been able to overcharge for money transfers despite the digital nature of transactions—simply numbers changing in a system with no physical movement of cash.

Wise stands out as, on average, it is 7 times more cost-effective than traditional banks when sending, spending, or withdrawing money globally (though this can vary by country).

Here's a quick summary of the benefits:

  • No home country bank fee.
  • No receiving country bank fee.
  • Access to the true Mid-Market rate for currency conversion, or even better!
  • Capability to send up to 2 million Thai Baht per transaction.
  • Rapid transfers, especially for amounts below 5k, taking approximately 24 hours.
  • Once you become accustomed to the system, you can utilize the iOS or Android app for seamless transfers on the go.

+ Click here to get your first transfer free

Boy does it feel good to avoid those bank fees!

Frequently Asked Questions:

1. How do I send money with Wise?

Go to the website. Type in the amount you want to send. Then fill out your details to register.

Once registered, you just need your bank account details and the details of the bank you are sending to in Thailand. Then push the magic button!

2. What is the maximum amount I can send with Wise?

2 million THB in a single transaction.

However, due to regulatory changes in Thailand, from Jan 2022, transfers of 50,000 THB and above will only be available for Kasikorn Bank, Bangkok Bank, and Siam Commercial Bank recipients.

Transfers under 50,000 THB remain unaffected for all supported recipient banks.

3. How long will the transfer take?

Anywhere from 9 seconds to 24 hours. It's usually very fast. Generally speaking, larger transfers take longer. By large I mean over $5,000 (USD).

4. Do I need a Thai bank account?

Yes, because this where the money gets paid into. If you don't have a Thai bank account, perhaps your partner or close friend has and you can send the money to their account.

5. Is Wise like a bank account?

This is the money sending service side of Wise. But Wise does have a bank account facility that enables you to hold multiple currencies and spend that money internationally using a MasterCard. I have reviewed this service here.

6. Can I use this service to transfer my pension to Thailand?

Yes. Many expats are losing money by having their pension paid into their Thai bank account. They lose on the exchange rate and the receiving fee. You might be better off having your pension paid into your home bank account and then transferring it to your Thai bank account via Wise.

7. Will the transfer  show up as an FTT, for visa extension purposes?

FTT is a code that indicates that the money transferred is a foreign money transfer. An FTT is what's required to fund a bank account that will be used for a retirement visa extension. For the funds to qualify the money must come from a foreign source and not a domestic one.

To achieve this, when asked in the Wise dashboard for the reason you are sending the funds, choose “Funds for long term stay in Thailand”.

8. How does Wise make money?

Wise charges a service fee for each transaction, but even when you factor this in you will still save a fair chunk of money.

9. Is Wise better than MoneyGram and other similar services?

Overall, yes. You can read through the reader comments below and see that at times people suggest other services but upon inspection they aren't cheaper than Wise, tend to be much slower on transfer, and collect more private data than is necessary.

10. Can I contact Wise with a question?

Yes, you can contact them by email or phone. The number is 020 3695 0999.



Last Updated on

Comments Sort by : newest | oldest

  1. Michael White says

    Hi Peter
    Just letting you know I've tried several times to use wise via your link . no luck .
    I had already tried a number of times prior to using your link . I am a bit challenged online but I usually get there in the end .
    Not with wise . just going around in circles .
    Thanks for the newsletter regardless
    Cheers
    Mike
    Reply

          • JamesE says

            Hi Max. Ah, so you don't read the data collection and privacy policies of the tech you use. Have a look at the data Wise's app collects. I made the same mistake thinking the app and web interfaces would be equivalent. I was wrong and promptly stopped using the app. Wise uses data to "track you across apps and websites owned by other companies". It tracks: "Purchases, Financial Info, Location, Contact Info, Contacts, User Content, Search History" and "Other data" among others. (Items quoted are from the Apple app store, I'm assuming Google's would be at least that intrusive.) I always ask why a company needs a certain class of data to provide me its services. So, ask yourself why Wise needs to keep track of, say, your search history to allow you to transfer funds to yourself. That's what I was "rambling out" and why I don't use the app.
            Reply

            • Max says

              James,if you're afraid of apps collecting data,then you can't use popular apps like google,Facebook or any online shopping app. Your phone will have very few apps installed. If Wise collects data and tracks my activity online via the app,then let them do it. This isn't something I'm worried about.Period.
              Reply

              • TheThailandLife says

                Having worked in this area I'd say one should be cautious, but it's important to note that companies are increasingly required to be transparent about their data collection practices due to stringent regulations like GDPR or CCPA. These regulations compel companies to disclose any tracking, even if it's minimal or non-intrusive. This means that what might appear to be extensive data collection is often just a precautionary disclosure to ensure compliance.Also, most companies, especially smaller ones, do not collect large amounts of personal data. Instead, they often rely on tools like Google Analytics or other user behavior tracking software, which primarily gather aggregate data to understand website traffic and user interactions. This data is typically anonymized and used to improve user experience rather than to identify or target individuals
                Reply

                • JamesE says

                  Hi Peter, Compelled to "disclose any tracking, even if it's minimal or non-intrusive" is correct but my - admittedly personal - stand is to ask why, for any reason whatsoever, would a company need to track data that is not required to provide me a product or service. The companies ma be compelled to be transparent about what they track but never why. In the specific case of Wise, why do they need to track my use across apps and websites operated by other companies or have access to my contacts or search history? Additionally, despite the alphabet soup of protective legislation, what happens when they sell that data on to aggregators or the ubiquitous third-party affiliated companies which have their own, and different, privacy policies?

                  With Wise, again to the point of the thread, why are they perfectly happy to provide me their full suite of services without all of the intrusive data collection on their web interface but not on their app?
                  Reply

              • JamesE says

                You are exactly correct. That's why none of those apps appears on my phone. People use their tech differently. My phone is a tool that I control and the app suite I have installed reflects my needs for the phone, not the app developers' needs for my data. You're cool with being followed, monitored, and categorized. That's good for you so no problem. My take is that i can get all the services you mention by merely sacrificing the "convenience" of it being on my phone. That's what works for me.
                Reply

  2. Earl says

    I’m looking at possibly retiring in Thailand, and had a question about the 800k baht requirement- does this include money transferred in for living expenses and such or does this need to be “over and above” (like a minimum balance requirement)

    Its not a lot, all things considered, but it does impact my olanning
    Reply

  4. Ed says

    A few years back HSBC UK froze my account when I tried to transfer 6,000 pounds to my bank in Thailand. Such a 'large' amount triggered a red flag apparently. I have since heard that 4,000 pounds is the trigger point. Is there anything I can do to avoid this reoccurring? I tend now to send money in 3,000 pound amounts to avoid this but pay for it with more frequent transfer charges.
    Reply

    • Max says

      You can use Wise and go for (for example) the "Low cost transfer-option" where you actually transfer money to Wise's local account in the UK. That's a domestic transfer and shouldn't trigger any flags.Then Wise takes over and transfer the money to your Thai bank account. Which bank are we talking about? If you're banking with Bangkok Bank, Kasikorn Bank or SCB,the limit is ฿2 million. Otherwise,the limit is ฿50.000.
      Reply

  5. Michael B. says

    I was setting up an EFT using my U.S. bank, which actually gives me an excellent conversion rate, and was given this message:

    "THB transfers must be made to a resident. Non-resident transactions are subject to regulatory approval and may be prohibited."

    As a non-resident Is it really the case that I must transfer in U.S. Dollars and let the bank (in this case, Bangkok Bank) do the conversion?
    Reply

      • Michael B says

        I did a Wise transfer today and the effective rate ended up being 35.84 after fees and all. The same transfer through my Bank of America account would have been 35.24.

        Maybe not so excellent. On a $1,000 transfer that would come to 600 baht, around $17. That could add up.
        Reply

            • TheThailandLife says

              Interesting. Do they lock in a rate for you for a certain time limit or is it whatever it is at the time? It is always worth comparing. Try it next time and see how it works out. Also worth highlighting to Wise in an email.
              Reply

              • JP says

                Strange you said that. In the UK, converting GBP to THB, the fee percentage with Wise is always the same = 0.55% whatever the amount. I just checked: £100: fees £0.55... £10,000 : fees £54.79 (yes, there's a rounding to the penny...).
                And to send the THB to a Thai bank account, the fee is always the same whatever the amount, currently 31.70 THB.
                At kleast in the UK, so far... I have not found cheaper and that reliable. Typical time from my Wise account to Thailand bank: 1 min... some times it took a few hours, ok... 6 hours. Even on Sundays. Of course, the Thai bank you're sending the money too needs to be up-to-date and accepts transactions on week-ends, but mine does.
                Reply

                • Max says

                  JP - The fee depends on the amount you send, the percentage is NOT the same. This is a fact, and I said large amounts,not larger amounts.£10.000 isn't very much.The difference in total fees between transferring for example your state pension (or even less money) every month compared to sending ฿5-600.000 once, is way more than a few pennies, especially when you might be doing this for many years if you're living in Thailand long term.
                  I think you don't know how transfers actually works when using Wise. Your transfers don't come from abroad. The money is transferred to your Thai bank account from a local Wise account. It's a domestic transfer,nothing else. That's why your money shows up even during weekends.I want my transfers to show up as international and because of that my money always arrives in my Bangkok Bank account next day Mon-Friday 2 pm. That's how it works. I don't know which thai bank you're banking with,but I have never ever paid a receiving fee when using Wise. Not one satang.
                  Reply

                  • robin winters says

                    Saying the money is transfered from a local wise account is rather worrying as I need my monthly transfers to show as an international transfer for visa purposes. How do I instruct wise to transfer via an international account?
                    Reply

                    • Max says

                      Which thai bank are we talking about? If banking with for example Bangkok Bank, the reason for the transfer is important.It has to be 'Funds for long term stay in Thailand,'. The problem is,with other banks it doesn't work every time,or never.I might be very lucky,because my transfers to one account at Bangkok Bank always shows up as international.

                    • JamesE says

                      If you do the transfers on a business day - excepting weekends and Thai holidays - I’ve found you’ll get an international transfer code 100% of the time, assuming, as Max says, you use the correct reason for the transfer. Doing the transfer on weekends/holidays might not get you the foreign transfer you want. Wise’s two primary banks are Bangkok and Kasikorn. Use one of them.

              • Michael B. says

                For a $1,000 transfer from the U.S. Wise charged me $8.84 – 0.884%.

                For a $5,000 transfer from the U.S. they charged me $39.09 – 0.782% [A savings of around $5.00 over 0.884%.]

                Presumably it goes down a bit more for even larger transfers.
                Reply

                • Max says

                  When I say large amounts,I mean way more than $5.000. I'm talking about at least ฿600.000. Doing this on a regular basis over maybe 10 years will save you some money. I know of people sending €1.000 every month and even less, which imo is a joke. A lot of expats buy cars or condos. They might transfer ฿2 million via Wise.That's the limit if banking with Bangkok Bank, Kasikorn Bank and SCB.
                  Reply

        • Max says

          Michael B. You always get the so called mid-market rate at Wise. You won't get that anywhere else. The total fee depends on the transfer option. In Europe there's a so called Low transfer option. I don't think that option is available when sending USD. I'm normally sending money from my Balance account and that way I can get an even lower total fee. I never send small amounts, meaning very few transfers every year. That way I keep the fees down a bit more.
          Reply

  6. Michael Adelman says

    Hi Peter, re WiSE cash transfers . With so many scammers how can
    I be sure and feel safe ? I also need to pay you £35 as advised by. a friend who is more savvy than me re internet and specifically your knowledge re
    an initial tourist visa application ! My problem is that i cannot find
    a place to press in order to make payment to you before the visa ap.....
    Please let me know where that burron is on your amazing web site ?
    My friend currently unavailable, therefore ihope you can answer me please ?
    Reply

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