How to send money abroad to your family in the Philippines


You are living abroad and might be wondering how to send money back home. Did you know that 5.4 million Filipinos just like yourself are also living out of the country? They are also sending money back to their families. The UN estimates that, last year, $28 billion were sent back to the Philippines.

Here is a complete guide to help you in this process that can be very expensive unless you know how it works.


How to send money abroad at the right moment?

As you are living outside of your home country, the Philippines, you are paid in another currency than the peso. Therefore exchange rates are crucial when considering sending money home. Indeed, depending on when your transfer is made, your family will not get the same amount on their account if you made your transfer when the exchange rate was low or high.

For example, yesterday the exchange rate USD-PHP was 1/49,82 and a few weeks ago it was 1/47,42. It means that if you had sent money at that time you would have received less than you would if your transfer was made yesterday.

Then you ask yourself how to send money abroad at a good moment. There is no perfect answer to that, just make sure you send the maximum you can when the exchange rate is good, in case it gets poorer for a long time. (This work if you need to send money regularly).

How to send money abroad at a low cost?

Let see how to send money the cheapest way possible. Very few people know that there are many solutions today to send money abroad. We can divide them into 3 categories:

  • The banks: used by many of us. The main reason for this is that it seems easy, fast and cheap. It is actually one of the most expensive way to send money abroad. Indeed, several fees generally apply: fixed, variable and even hidden ones (because of poor exchange rates the bank uses).
  • High street operators: you can hardly ignore them, Western Union or Moneygram are generally available from post offices or grocery stores in big cities. Same issue here: they generally charge you 10% of the amount you are sending and generally apply very poor exchange rates. Many people actually use them to send money to people who do not have bank account to receive the money.
  • Online, or peer-to-peer operators: they recently arrived on the market and are really competitive in terms of prices: 2 to 3% of the amount transferred. You can do everything online, the recipient do not need to have a bank account and they operate really fast.

So my answer to your question “how to send money abroad at low prices” would be, with no hesitation, online operators. You can even compare them to make sure you find the best one according to your needs.

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