Author, Andrew Gibson
Last Updated on August 28th, 2024
Whatever your reason for transferring money to Australia or exchanging your currency for Australian Dollars, finding the best exchange rate is essential.
A better exchange rate means more money for you.
In this article, we look at why it is so essential, tips on how to find the best AUD rate, the current best services available, and other areas you should consider.
Get a Great AUD Rate with Key Currency
Money Services Offering the Best Australian Dollar Rate
We have done some research, and below you will find the best type of money service for international money transfers, large or small, and travel money.
Best for Large International Transfers to Australia
| Best | Worst |
| Currency Brokers (eg Key Currency) | High Street Banks (eg Lloyds, Natwest, Barclays) |
Comparing Currency Brokers to Banks
If you need the best AUD exchange rate for a large international money transfer, then currency brokers (money transfer specialists) are likely your best option.
There are three main reasons for this:
Lower Fees
Currency Brokers usually charge much smaller fees for large transfers to Australia, and some providers don’t charge a transfer fee like ourselves at Key Currency.
A currency broker is typically a much cheaper alternative for international money transfers than high-street banks.
The range of high-street bank transfer fees will vary between banks and the destination you’re looking to send to, but usually, it is between £10 to £35 for a money transfer to Australia.
| Bank | International Money Transfer Fee |
| Lloyds | 3% of the transferred amount |
| NatWest | £15 per transfer. |
| RBS | £15 per transfer. |
| Barclays | Up to £35 per transfer. |
| Santander | £25 per transfer. |
| HSBC | £17 per transfer. |
If you expect to make multiple money transfers to Australia over time, these transfer fees with a bank will begin to pile up.
Competitive AUD Exchange Rates
With much lower overheads than your typical bank, currency brokers can offer customers more competitive AUD exchange rates.
Banks typically charge between 3-6% on the amount transferred for the exchange rate. This charge is on top of the transfer fees mentioned above.
Exchange rate charges will depend on how much you want to transfer to Australia, so finding the best and most competitive rate will save you and your recipient from losing money.
Currency brokers will be one of the best ways to achieve this.
Human Support
How currency brokers stand apart from other money transfer services, such as a bank, is the communication and personal support customers get.
Not all currency brokers offer this service, but a few will allocate a personal trader to you.
Expert traders can monitor the AUD exchange rate and ensure you get the most favourable rate with that currency broker.
Doing so takes away much of the time and stress off your plate.
It is reassuring to have that personal touch, especially when transferring large sums of money.
Currency brokers can support you through the whole money transfer process to Australia.
Best AUD Rates for Small Money Transfers
| Best | Worst |
| Online Services (eg Wise, Revolut) | High Street Banks (eg Barclays, Lloyds, Natwest) |
An online money transfer service can be a good option for sending smaller amounts of money to Australia (under £500).
There are various providers for online remittance money transfers; these include Wise, PayPal, Revolut and Western Union.
The reason why online money transfers are much better than banks for remittance transfers comes down to three reasons:
- Their transfer fees are much lower than high-street banks.
Online Money Service International Transfer Fee Wise £4.35 Western Union The first transfer is free, then £3.89 per transfer. Revolut £3 PayPal £2.99 - They usually provide quicker transfer times; sometimes, the transfer will arrive on the same day; this may be an essential factor with smaller amounts.
- They will offer much more favourable AUD exchange rates compared to known banks.
Best AUD Rates for Travel Money
| Best | Worst |
| Supermarkets (eg Tesco, Sainsbury’s) | Airports (eg Travelex, Moneycorp) |
If you’re travelling to Australia soon and need to exchange money for Australian Dollars, we suggest using known supermarket chains or an online currency exchange.
Our findings currently show that John Lewis, Waitrose, Tesco and Sainsbury’s are offering the best AUD exchange rates for travel money with free insured delivery.
It is highly recommended that you exchange your currency before getting to the Airport and doing it there.
The 0% commission signs you see are deceiving.
Currency exchanges at Airports will have much higher margins on the AUD exchange rate to substitute for the above. This can be as high as 30% on the amount you exchange.
Exchanging £750 into Australian Dollars at the airport could see you lose up to £225 from their exchange rate costs.
How to Research for the Best Australian Dollar Rate
Ultimately, finding the best Australian Dollar exchange rate comes down to putting in the time to do the research.
There are a lot of different providers and services around these days, so comparing them against one another will help you get the best rate available.
What to Consider with Comparison Sites
When you’re at the start of looking for the best Australian Dollar rate available, you will more than likely come across various comparison sites.
They dominate the web most of the time.
Many comparison websites for AUD exchange rates only showcase money exchange and transfer websites that are commercial partners with them.
Going through a comparison site to ‘get the best exchange rate’ actually adds another layer of cost to you as a customer.
And it’s important to remember that many providers and money transfer services won’t be shown on comparison sites.
As a tip: If you find reasonable rates by researching comparison sites, go directly to the provider.
Comparison sites sometimes show pre-set exchange rates, especially on weekends when the market isn’t open, and most customers will be researching at this time of the week.
Whether it is your bank, supermarket, currency broker or online money service, they can provide live AUD exchange rates.
Mid-Market Rates vs Customer Rates
When comparing and looking at different AUD exchange rates, you may see that the ‘mid-market rate’ is in grey or close to the AUD rate.
The mid-market rate is the exchange rate that banks use to trade with one another.
So, the AUD exchange rates you see online differ from customer rates, and the quotes you receive may vary.
It is vital to go to providers directly and get a genuine quote from them.
Use the ‘mid-market rate’ as a guide but genuine quotes from multiple providers will give you the best comparison.
For a live look at the current mid-market rate, you can use our Pound to Australian Dollar converter!
Quick Summary
- Currency brokers are one of the best options for transferring large amounts to Australia and saving money on AUD exchange rates.
- Using your bank for small or large money transfers will incur higher fees and less favourable AUD exchange rates.
- Avoid exchanging your travel money for Australian Dollars at the airport.
- Always get genuine customer quotes from providers to compare the best available AUD exchange rates.
Supporting You with Your Money Transfers to Australia
At Key Currency, we help thousands of customers transfer money to Australia from various destinations.
With an ‘Excellent’ rating on Trustpilot, with over 2,000 reviews; we are money transfer specialists that you can trust.
Our expert team is always on hand to support you through the transfer process from registration until completion.
We are Authorised by the FCA and comply with their money transfer rules and regulations.
Using dedicated and safeguarded client accounts gives you peace of mind that your money is secure.
For further information and a free customer quote for a money transfer to Australia, click the link below.