Remitly vs Xoom: Which is the best option for your money transfer?

The Verdict

Safety: Both companies are fully licensed and authorized in the U.S.
Rates: On most remittances, Remitly offers better exchange rates.
Fees: It is a tie between both companies as the fees are influenced by many factors.
Speed: Both Remitly and Xoom have options that allows money to be delivered within minutes.
Service: Similar services like bank transfers and cash pick-up.

Xoom is a good option if you are looking to deliver money on the same day via debit or credit card. However, they have a low maximum transfer limit.

Remitly, on the other hand, are a cheaper option in almost every other circumstance and they have most of the globe covered.

Like banks, money transfer providers usually make their money in two main ways: Firstly, the margin from which they purchase currency at a wholesale rate and the cost of currency sold on to customers. Secondly, an additional transaction fee.

Both Xoom's and Remitly's exchange rate vary and a margin is added on top of the mid-market exchange rate.

Before making a decision, it is important to compare live exchange rates offered by each provider.

Here are three ways to compare the rates offered by Xoom, Remitly, and other providers:

View live rates online at Xoom or Remitly
Use Remitly's and Xoom's currency calculator
Compare exchange rates of up to 8 different providers at once with our comparison engine

It’s important to be aware of the fees involved when making an international money transfer.

Remitly's fee depends on the amount you are sending, where you are sending the funds, and whether you choose an Express or Economy transfer
Xoom’s fee structure vary depending on the transaction type, amount and currency you are sending, payment method and the currency received by your recipient

Be mindful that there could be more fees involved than the ones mentioned here. You could be charged a cash advance fee by your card provider if paying by credit or debit. In addition, your recipient’s bank could charge a deposit fee or corresponding bank fee to deposit the funds.