Best Alternatives to HSBC for International Money Transfers – Guide

HSBC is one of the largest UK banks and a common choice for overseas payments. Many customers use HSBC UK for international transfers because they already hold a current account or use the HSBC UK mobile banking app. However, HSBC international transfers are often more expensive than expected. This guide explains why and outlines the main alternatives UK consumers consider when sending money abroad.

Why look for alternatives to HSBC?

HSBC international transfers can involve:

• Fixed transfer fees
• Currency conversion charges
• HSBC’s own exchange rates
• Intermediary or receiving bank fees

These costs can reduce the currency equivalent received, particularly when sending large amounts of money or making frequent global transfers. For this reason, many people compare different providers before choosing an international money transfer service.

What are the best alternatives to HSBC for international money transfers?

The best alternatives to HSBC for international money transfers are providers that offer transparent fees, competitive exchange rates, and clear delivery times. These alternatives often reduce costs by avoiding wide exchange rate margins and unnecessary intermediary fees, resulting in better overall value than traditional high street bank transfers.

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Understanding the true cost of an international transfer

The cost of your transfer is not just the visible fee. It includes:

• Transfer fees
• Exchange rate margins
• Currency conversion fees
• Intermediary or receiving fees

The most accurate comparison looks at the total amount sent in pounds sterling and the final amount received in the destination local currency.

How HSBC international money transfers work

HSBC international payments are usually processed through global banking networks rather than direct local transfers.

Depending on the destination, HSBC transfers may involve:

• SWIFT network routing
• Intermediary banks
• Overseas partner banks

Customers must provide full account details, including:

• Account number of the person receiving funds
• Bank code or bank identifier code
• SWIFT code or international bank account number

Each step can affect transfer times, costs, and transparency.

HSBC Global Money and international transfers

HSBC offers global money services alongside traditional international transfers. These services are integrated into the HSBC UK mobile banking app and allow customers to hold and convert foreign currency.

However, even with a Global Money Account, costs may still arise from:

• Currency conversion at HSBC’s own exchange rates
• FX rates that differ from market exchange rates
• Product availability depending on country

Holding foreign currency does not always guarantee best value for every transfer.

Fixed fees and exchange rate margins

HSBC may charge a flat fee for international transfers, regardless of the amount sent. While a flat fee can seem reasonable, it often masks the bigger cost: exchange rate margins.

Why exchange rates matter more than fees

HSBC typically applies its own exchange rates rather than real market exchange rates. Even a small margin can significantly increase costs.

For large transfers, FX rates matter far more than the visible fee.

Transfer times and delivery speed

HSBC international transfers are usually processed in business days rather than in real time.

Transfer times can vary depending on:

• Destination country
• Banking hours
• Intermediary banks involved

Some transfers may take several business days to reach the recipient’s account.

Online transfers vs branch-based transfers

Transfers made via online banking or the HSBC mobile banking app may be cheaper than those arranged in branch.

Branch-based transfers often involve:

• Higher service fees
• Slower processing
• Less visibility over exchange rates

Online transfers generally offer clearer fee information, but still rely on HSBC pricing.

Debit card and credit card considerations

HSBC international transfers are typically funded from a current account rather than a debit card or credit card.

Where card payments are used elsewhere, additional costs may apply:

• Card processing fees
• Foreign transaction fees
• Higher overall charges

For most international bank transfers, funding from a bank account remains the lowest-cost option.

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Sending money to different countries

Costs vary significantly depending on destination.

Transfers to different countries may be affected by:

• Local banking infrastructure
• Currency liquidity
• Use of intermediary banks

Sending money to destinations such as the United States, Hong Kong, New Zealand, or Sri Lanka may involve different fee structures and processing routes.

This is why country-specific guides such as Cheapest Way to Send Money to [COUNTRY] from the UK are often more accurate than general advice.

Are alternatives to HSBC better value?

Alternatives to HSBC typically focus on:

• Transparent fees
• Competitive FX rates
• Clear fee information before confirmation
• Fewer intermediary banks

Rather than relying on branch networks, many alternatives use digital platforms and mobile apps to reduce costs.

What to look for in an alternative provider

When comparing alternatives, UK customers often prioritise:

• Transparent pricing
• Competitive exchange rates
• Clear transfer times
• Support for large transfers
• Straightforward account details

Comparing more than one payment provider helps identify the best deal for each transfer.

Large transfers vs small transfers

The best option depends on the transfer size.

HSBC pricing is often less competitive for large international transfers due to exchange rate margins.

Customer support and service experience

HSBC offers customer support through branches, phone, and digital channels. While this can be reassuring, it does not necessarily result in lower costs.

Some alternatives prioritise:

• Digital-first customer service
• Online account management
• Clear tracking and status updates

Support structure does not always correlate with pricing value.

Regulation and consumer protection

HSBC and other UK banks operate under Financial Conduct Authority oversight. Regulation ensures:

• Safeguarding of customer funds
• Clear disclosures
• Secure payment systems

However, regulation does not guarantee lower fees or better exchange rates.

Comparing HSBC with other UK banks

Many UK banks follow similar pricing models for international transfers.

Common characteristics include:

• Flat transfer fees
• Own exchange rates
• SWIFT-based routing

This is why comparing UK banks alone may not reveal the most cost-effective option.

Which banks in the UK offer cheaper international money transfers than HSBC?

Some UK banks may offer cheaper international money transfers than HSBC in specific situations, such as when sending smaller amounts or transfers within Europe. However, many UK banks use similar pricing models, including fixed fees and exchange rate margins, meaning cost differences between banks are often limited.

Why comparing providers matters

No provider offers the best value for every transfer.

Costs vary based on:

• Currency pair
• Destination
• Transfer amount
• Date pricing and FX movements

Comparing options close to the time of transfer helps avoid unnecessary costs.

Correct as of 19 December 2025

FAQs about alternatives to HSBC for international money transfers

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