Using Crypto to save on Forex transfer costs

Crypto can give you a better rate than even Transferwise

I have been using Transferwise (now known as Wise) to save on international money transfers for quite some time now. Wise is very much cheaper and faster than doing Telegraphical Transfers (TT) with a bank.

I also recently discovered that I was able to save even further by using Binance P2P as my intermediary.

To give you an example, let’s say I’m transferring HKD 50,000 (USD 6441), from Hong Kong to Malaysia.

At the wise.com website, I find that I’m able to get MYR 26364 at the other end.

When transferring from HKD into MYR in Binance, we will first need to convert the HKD into a USD stablecoin (USDT gives a better rate than BUSD at the time of writing).

50000 HKD gives me USDT 6435 (USD/HKD at 7.77 at the time of writing).

Once I get the USDT into my wallet, I then move to the “Sell” it to MYR.

USDT 6435 gives me MYR 26705.25, which is MYR 340.71 (USD 82) more that if I performed the transaction with Wise!

What about using a bank?

If I performed the same transaction with HSBC Premier, I would only get MYR 25775, which is RM 930 (USD 225) less than using Binance P2P.

Summary

Here is the comparison between using Binance P2P, Wise, and HSBC Premier

Please be aware that the value of USDT may vary from time to time (despite being a stablecoin), so it is best to check and compare before you perform your transfer.

Also, your mileage may wary with your currency pair. So please compare and shop around!