Looking for the best way to send your money abroad from Hong Kong? Here’s your guide

If you need to transfer money from Hong Kong to someone based overseas, you have a few options to choose from. You can send a payment using your normal bank - usually a telegraphic transfer (TT), set up an international money transfer with a third party, or choose a cash service.

Each of these different options has its own pros and cons - and the right one for you will depend on your specific situation. Check out our guide for straightforward advice to help decide which method will work best for you.

Traditional banks: Fees and rates for international transfers

If you’re new to sending international money transfers, using your regular bank might seem like the natural place to start. It’s familiar, and you’d think banks would want to keep their loyal customers happy with fast transfers, good rates and low fees.

Unfortunately, this isn’t usually how it works. Cross border payments are not a core service for regular banks, which means the fees can be high. On top of that, you might run into extra costs as traditional banks use the SWIFT network to process most payments. This approach means that several banks handle a single payment - adding cost, and slowing down delivery time.

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The currencies you can send via your bank may be limited. Hang Seng for example, covers only 16 currencies¹ - if you need a more unusual currency you’re out of luck. Banks also choose their own exchange rates. This may mean that your transfer is made with a marked-up rate, further increasing the cost. We’ll look at this in more detail below.

Here’s what you need to know about sending a money transfer through your normal bank:

Send online through your regular bank

In most cases, the cheapest way to send an international payment with your bank is to use your normal online banking. Using online banking, you’ll find a lower transfer fee, although you will still be subject to potential SWIFT charges, and may find the exchange rate used includes a markup or margin.

You can spot a marked up exchange rate by finding the mid-market exchange rate for your currency. Just Google your currency pairing or use a reputable online currency converter to get the live rates. Compare this mid-market rate to the one used by your bank to see if there’s a markup added. If there is, you might be better off with an alternative international transfer provider.

For upfront transfer fees, the cheapest of the large local banks is HSBC - with a HKD50/transfer charge - followed by Hang Seng at HKD65¹𑁦².

Send in person through your regular bank

As an alternative to online banking you can also visit your branch and set up your transfer in person. However, you will pay a significantly higher fee for this service. To put that in context, HSBC has a fee of up to HK$240 for in-branch service, while Hang Seng will charge up to HK$260 to arrange a transfer in a branch.

Other options

Aside from online and in branch, some banks also allow international payments to be arranged over the phone, or even by fax. Check out your own bank’s policy - and don’t forget to look closely at the fees.

It’s also worth noting here that the international remittance services offered at present by Hong Kong’s emerging virtual banks tend to be rather limited. If you have an account with a virtual bank, you’ll need to check whether it’s possible to arrange your international payment directly, or if you need to use a third party to get started.

Let’s take a look at the costs of sending money overseas with a few major Hong Kong banks, using an example:

**A cost example: sending 10000 HKD from Hong Kong to the UK (GBP)³:

Bank Name	Method used	Fees	Exchange rate	Recipient will get
Hang Seng Bank	Telegraphic Transfer	HK$65	0.100928	GBP1,002.71 - any SWIFT fees applied
BEA	Telegraphic Transfer	HK$100	0.101282	GBP1,002.70 - any SWIFT fees applied
China Construction Bank	Telegraphic Transfer	HK$100	0.101247	GBP1,002.34 - any SWIFT fees applied
HSBC	Telegraphic Transfer	HK$50	0.100112	GBP996.11 - any SWIFT fees applied

*Fees and rates correct at time of research - 24 September 2020

Online money transfer services: Fees and rates for international transfers

Third party providers allow you to set up an international transfer which you can fund with a bank transfer, or using a credit or debit card. That means the entire payment is processed online without needing to visit a bank branch.

In most cases, online money transfers like these are sent directly to your recipient’s own bank account. However, there are also some services where your recipient would need to sign up for a new account with the provider to access their money - such as PayPal.

The fees, exchange rates, and delivery times vary widely for online third party services. To make sure you’re getting a good deal, you’ll need to check the exchange rate being used as well as the upfront fee. It’s also always worth making sure the provider is properly regulated, so you have peace of mind when making your money transfer. Here are some common options when it comes to online international transfers:

Zero fee services

A quick Google of online money transfer services will throw up plenty of results. You’ll notice that many of them claim to charge zero fees, or 0% commission. This sounds like an excellent deal, but in fact it’s usually too good to be true.

Most services which claim to charge no upfront fee will actually roll up their costs and profit into the exchange rate they offer customers. This means you get a marked up rate instead of the mid-market exchange rate you’ll find on Google. That’s an extra cost for you - and makes it harder to see exactly what you’re paying for your transfer.

With many 0% commission services you’ll have to create an account before you can access the exchange rates available. If you’re considering using a service like this, make sure you compare the exchange rate on offer against the mid-market exchange rate before you go ahead. You’ll also need to check if there are any additional costs, such as intermediary fees applied by banks involved in the transfer. These sneaky fees can push up costs even more.

PayPal

If you already use PayPal for online shopping, you probably know you can send money through PayPal to friends and family, using only their email address or phone number.

This is an extremely convenient way to send a payment. However, while it can be good value if you’re making a local payment funded using your linked bank account or PayPal balance, the costs shoot up for international transfers. You’ll pay a range of fees including an exchange rate markup, and your recipient will need their own PayPal account to access their money.

Check out the full PayPal international transfer fees, here.

Other options

As well as online payment providers, you can also send money to friends and family using social apps like WeChat. This works well for local payments, but sending an international payment with WeChat is extremely limited. Learn more about international payments with WeChat in our handy guide.

Wise is a smart alternative if you want cheap, convenient and low cost international payments. All transfers use the mid-market rate with no markup, and just a simple transparent fee. That means you can see exactly what your recipient will get, before you even confirm the transfer. More on that coming up later.

Let’s finish up with another example:

A cost example: sending 10000 HKD from Hong Kong to the UK (GBP)****:

Provider Name	Method used	Fees	Exchange rate	Recipient will get
PayPal	Digital payment	HK$38.98	0.0970300	GBP966.52
Wise	Payment uses local bank networks to cut fees	HK$50	0.101486	GBP1,009.79

*Fees and rates correct at time of research - 24 September 2020.

Send/receive cash: Fees and rates for international transfers

A final option when sending money overseas is to use a provider which lets you deal in cash. You may be able to send a payment in cash by visiting an agent location for a company such as Western Union, and have your recipient collect in cash at an agent local to them, almost instantly. You can also choose a service like WorldRemit to pay online and have your recipient collect in cash.

These services work well if you need to get money to a recipient extremely quickly, or if your recipient does not have a bank account. However, it’s worth noting that there will usually be an exchange rate markup to pay, as well as any upfront fees. Here’s what WorldRemit says about this:

“When you pay a Transaction Amount in one currency and the Payout Amount is in another currency, there will be a difference between the exchange rate at which we buy foreign currency and the exchange rate provided to you. WorldRemit and its Service Providers usually make a small profit in these circumstances⁴.”

To find out the exchange rate and fees which apply to your specific transfer you’ll need to create an account with your chosen provider. Here’s what you should know about your options for sending and receiving cash payments:

Sending cash

Some providers offer the option of visiting a local agent in Hong Kong to pay in cash. This money can then be delivered to your recipient’s bank account, or collected in cash. In some cases you can even have the payment delivered right to your recipient’s door in local currency.

You’ll usually pay a premium for this service. The exchange rate you get from an agent may not be the same as those you see online, so don’t forget to compare your options. You can also read more about how to make a payment with Western Union in this helpful guide.

Payments collected in cash

Providers like WorldRemit offer you the option of sending money online and having it collected in cash by your recipient. In this case, your recipient will visit an agent near them to get their money. Again this tends to be an expensive option, but can be a useful choice for recipients who don’t have access to a bank account.

Making international transfers from Hong Kong? You could save more with Wise

If you want to send money online to a recipient’s bank account, check out Wise as a smart way to save. Wise has the convenience of sending money directly from your bank account, without the high fees. You’ll also get the real mid-market exchange rate, every time.

Unlike traditional banks, Wise payments don’t use the SWIFT network, which means there are no extra fees to worry about. You’ll see exactly what your recipient will get before you confirm your payment - and it’s usually quicker than the banks too.

Here’s a look at how Wise measures up against other international money transfer options here in Hong Kong:

A cost example: sending 10000 HKD from Hong Kong to the UK (GBP):

Bank/ Provider	Method used	Fees	Exchange Rate	Recipient will get
Wise	Payment uses local bank networks to cut fees	HK$50	0.101486	GBP1,009.79 Try now
Hang Seng Bank	Telegraphic Transfer	HK$65	0.100928	GBP1,002.71 - any SWIFT fees applied
BEA	Telegraphic Transfer	HK$100	0.101282	GBP1,002.70 - any SWIFT fees applied
China Construction Bank	Telegraphic Transfer	HK$100	0.101247	GBP1,002.34 - any SWIFT fees applied
HSBC	Telegraphic Transfer	HK$50	0.100112	GBP996.11 - any SWIFT fees applied
PayPal	Digital payment	HK$38.98	0.0970300	GBP966.52

Finding the best way to transfer money overseas can be a little daunting. There are many different options, so doing some research is the best way to make sure you’re getting a good deal. Check out traditional banks, as well as modern alternatives like Wise to find the right balance of cost, convenience and service for you.

Sources used in the article:

1. Hang Seng Bank - Overseas transfer

2. HSBC HK - Bank Tariff Guide, page 11

3. Wise HK - HomePage

4. World Remit - Terms and Conditions

Sources last checked on 23-September 2020.