Cheapest Way to Transfer $500: 7 Low-Cost Methods That Save You Money

Finding the cheapest way to transfer $500 can feel like searching for a needle in a haystack, especially when banks are charging you an arm and a leg just to send your hard-earned money home to Brazil or anywhere else.

I’ve been sending money internationally for years, and trust me, I’ve learned the hard way that those “convenient” bank transfers can eat up $50+ of your $500 before you even blink.

Here’s the thing: You don’t have to lose 10% of your money to fees and terrible exchange rates. Let me show you the 7 cheapest methods I’ve discovered that’ll keep more money in your pocket (and your family’s).

Why $500 Transfers Cost So Much (And How to Avoid the Traps)

Cheapest Way to Transfer $500. Look, I get it. You work hard for your money, and the last thing you want is to watch it disappear into some bank’s pocket. But that’s exactly what’s happening if you’re using traditional transfer methods.

The Hidden Fees That Banks Don’t Tell You About

Banks love to advertise “low transfer fees” but conveniently forget to mention the other ways they’re making money off you:

Wire Transfer Fee: $15-45 (they tell you about this one) Correspondent Bank Fee: $10-25 (surprise! This one’s often hidden) Exchange Rate Markup: 3-6% above the real rate (the biggest money grab)

So that $500 you’re sending? It could cost you $75+ total. That’s groceries for a week, gone.

Exchange Rate Markups: Your Money Disappearing

Here’s where it gets sneaky. Banks will show you an exchange rate that looks “official,” but it’s actually marked up significantly from what they call the mid-market rate (the real exchange rate you see on Google).

Real example: If the USD to BRL mid-market rate is 5.20, your bank might give you 4.95. On $500, that’s losing about $24 just on the exchange rate before any fees.

I learned this the expensive way when I sent money to my family in São Paulo and realized they received way less than I calculated.

The 7 Cheapest Ways to Transfer $500

Alright, let’s get to the good stuff. These are the methods I actually use and recommend to friends and family.

#1 Wise (TransferWise): The Fan Favorite for Good Reason

Wise is the cheapest online only provider. Over the last 6 months they were the cheapest for most international transfers, and honestly, it’s my go-to for sending money to Brazil.

What you’ll pay for $500:

• Transfer fee: $4.12-7.50 (depends on payment method)
• Exchange rate: Mid-market rate (no markup!)
• Total cost: Around $4-8

Why I love it: They’re completely transparent. No surprises, no hidden fees. You see exactly what you pay upfront.

Best for: Anyone who values transparency and low costs. Perfect for regular transfers to family.

#2 Remitly: Perfect for Brazilian Families

Remitly has become super popular in the Brazilian community, and for good reason. They really understand our needs.

What you’ll pay for $500:

• Economy transfers: $1.99-3.99 fee for transactions over $500 (often waived), with 0.5-3% exchange rate markup
• Express transfers: Higher fees but arrives in 15-30 minutes
• Total cost: $3-15 depending on speed

Why Brazilian families love it: They partner directly with major Brazilian banks, and you can send money straight to someone’s bank account or for cash pickup.

Best for: When speed matters or you’re sending to someone without a bank account.

#3 MoneyGram: Old School but Still Cheap

Don’t sleep on MoneyGram. Yeah, it’s been around forever, but they’ve really stepped up their digital game.

What you’ll pay for $500:

• Online transfer fee: $3.99-4.99
• Exchange rate markup: 1-2%
• Total cost: $8-15

Why it works: Massive network of pickup locations worldwide. Your recipient can grab cash from thousands of places.

Best for: Sending to areas with limited banking or when cash pickup is preferred.

#4 Cash App: Surprisingly Good for Domestic Transfers

Hold up, before you scroll past this one. If you’re sending money within the US (maybe to a friend who’s traveling to Brazil), Cash App is ridiculously cheap.

What you’ll pay for $500:

• Standard transfer: FREE (takes 1-3 business days)
• Instant transfer: 0.5-1.75%
• Total cost: $0-8.75

The catch: Only works within the US. But if you need to send money to someone in the US who will then handle the international transfer, this is genius.

Best for: Domestic transfers or splitting international transfer costs with friends/family.

#5 PayPal: When Convenience Meets Affordability

PayPal isn’t always the cheapest, but sometimes convenience wins, especially if you’re already in their ecosystem.

What you’ll pay for $500:

• Transfer fee: $0.99-4.99 (varies by country)
• Exchange rate markup: 2.5-4%
• Total cost: $15-25

Why it might be worth it: Buyer protection, familiar interface, and your recipient might already have PayPal.

Best for: When both sender and receiver are comfortable with PayPal and value the platform’s protections.

#6 Western Union Digital: Better Than You Think

I know, I know. Western Union has that old-school reputation. But their digital platform is actually pretty competitive now.

What you’ll pay for $500:

• Online transfer fee: $4.99-8.99
• Exchange rate markup: 1-3%
• Total cost: $10-25

The advantage: If something goes wrong, they have physical locations everywhere. That peace of mind is worth something.

Best for: First-time international senders who want the security of a big, established company.

#7 Xoom: PayPal’s Hidden Gem for Brazil

Xoom is owned by PayPal, but it’s specifically designed for international transfers. They’ve got some sweet deals for Brazil transfers.

What you’ll pay for $500:

• Transfer fee: $2.99-4.99
• Exchange rate markup: 1-2%
• Total cost: $8-15

The Brazilian connection: They work directly with major Brazilian banks and offer competitive rates for USD to BRL transfers.

Best for: PayPal users who want better international rates than regular PayPal offers.

Real Cost Breakdown: What You’ll Actually Pay

Let me break this down with real numbers. I’m going to show you what it actually costs to send $500 to Brazil with each method:

The $500 Test: Exact Fees for Each Method

Traditional Bank Wire:

• Wire fee: $35
• Exchange rate loss: $25 (5% markup)
• Total cost: $60 (12% of your transfer!)

Wise:

• Transfer fee: $5.47
• Exchange rate loss: $0 (mid-market rate)
• Total cost: $5.47 (1.1%)

Remitly Economy:

• Transfer fee: $1.99
• Exchange rate loss: $12.50 (2.5% markup)
• Total cost: $14.49 (2.9%)

MoneyGram Online:

• Transfer fee: $4.99
• Exchange rate loss: $10 (2% markup)
• Total cost: $14.99 (3%)

Which One Wins for Brazil Transfers?

For pure cost savings, Wise wins hands down. But here’s the thing – sometimes paying a few extra dollars for speed or convenience is worth it.

If your family needs money ASAP, Remitly Express might be worth the extra cost. If you want the security of an established company, Western Union or MoneyGram make sense.

Smart Timing Tips to Save Even More Money

Want to squeeze even more savings out of your transfers? Here are some tricks I’ve learned over the years.

Best Days and Times to Send Money

Tuesday through Thursday: Exchange rates are typically most stable. Avoid Mondays (market volatility) and Fridays (weekend spreads).

Between 2-4 PM EST: This hits during both US and Brazilian business hours, often giving you better rates.

Avoid weekends: Most services add weekend spreads that can cost you an extra 0.5-1%.

Exchange Rate Tricks I Wish Someone Told Me Earlier

Set up rate alerts on apps like Wise or XE Currency. When the USD/BRL rate hits your target, transfer immediately.

Pro tip: If you’re not in a rush, wait for the rate to move in your favor. A difference of 0.10 BRL per dollar saves you $10 on a $500 transfer.

Another trick: Consider sending slightly larger amounts less frequently. The fixed fees hurt less when you’re transferring $800 once instead of $400 twice.

Red Flags: Transfer Methods to Avoid

Not all cheap options are good options. Here are some that’ll burn you.

When “Free” Transfers Cost You More

I see ads all the time for “free international transfers.” Here’s the reality: they’re making money somewhere, usually through terrible exchange rates.

Example: A service advertises free transfers but gives you an exchange rate 5% worse than mid-market. On $500, that’s $25 hidden cost – more expensive than Wise!

Always look at the total cost (fees + exchange rate difference), not just the advertised fee.

Scams That Target Brazilian Immigrants

Be careful of services that:

• Promise rates that are too good to be true
• Ask for unusual personal information
• Don’t have proper regulatory licenses
• Pressure you to send money immediately

Stick to regulated services. In the US, legitimate money transfer companies must register with FinCEN. Always verify this before sending your hard-earned money.

Step-by-Step: Setting Up Your First Cheap Transfer

Let me walk you through setting up a Wise transfer since it’s my top recommendation for most situations.

Getting Started with Wise (My Top Pick)

Step 1: Go to wise.com and create your account with your email address.

Step 2: Verify your identity. You’ll need a government-issued ID (passport, driver’s license) and proof of address.

Step 3: Add your recipient’s information. For Brazil, you’ll need their full name (exactly as it appears on their bank account), bank details, and CPF number.

Step 4: Choose how to pay. Bank transfers are cheapest, debit cards are faster but cost more.

Step 5: Review the total cost and exchange rate. Wise shows you everything upfront – no surprises.

Step 6: Confirm and send. You’ll get tracking updates throughout the process.

What Documents You’ll Need

For any legitimate money transfer service, you’ll need:

For yourself:

• Government-issued photo ID
• Proof of address (utility bill or bank statement)
• Social Security Number or ITIN

For your recipient:

• Full name (exactly as on their bank account)
• Bank account details or pickup location
• CPF number (for Brazil transfers)

Pro tip: Have all this ready before you start. It’ll save you time and prevent your transfer from getting delayed.

Pro Tips from Someone Who Sends Money Every Month

I’ve been doing this long enough to learn some lessons the hard way. Here’s what I wish someone had told me when I started.

Always do a test transfer first. Send $50-100 before sending larger amounts. It’s worth the peace of mind.

Keep screenshots of everything. Transfer confirmations, exchange rates, receipts – everything. If something goes wrong, you’ll need this documentation.

Don’t chase the absolute cheapest option if it’s unreliable. I learned this when a sketchy service held my money for weeks. Sometimes paying an extra $3-5 for peace of mind is worth it.

Set up recurring transfers if you send money regularly. Many services offer discounts for repeat customers.

Join Brazilian Facebook groups for money transfer tips. The community often shares promotional codes and warnings about scams.

Consider cryptocurrency for large amounts. For transfers over $2,000, crypto can sometimes be cheaper, but it’s more complex and risky.

Time your large transfers. If you’re sending money for a specific purchase, monitor exchange rates for a week or two to get the best rate.

Use credit cards strategically. Some credit cards offer points/cashback that offset transfer fees, but watch out for cash advance fees.

Don’t put all your eggs in one basket. I have accounts with 3-4 different services. If one is down or has issues, I have alternatives.

Read the fine print on promotional rates. “0% fees for first transfer” often comes with a terrible exchange rate that costs you more than paying the fee would.

The bottom line? The cheapest way to transfer $500 is usually Wise for pure cost savings, but Remitly, MoneyGram, or Xoom might be better depending on your specific needs for speed, convenience, or recipient location.

Ready to stop overpaying for money transfers? Start with Wise for your next $500 transfer and see the difference for yourself. Your wallet (and your family) will thank you.

Have you tried any of these methods? Drop a comment below and let me know which one worked best for you. We’re all in this together, and sharing experiences helps everyone save money.