logo
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Contact us
logo
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Contact us

Wise: A smart move for both travellers and traders looking for the best exchange rates

Insiders score

infoMore info
This is the score our team have awarded the platform based on our own personal experiences and other important factors, such as fees and ease of use.

4.0out of 5

Recommended in
Best FX fees

Offers access to the true exchange rate, although you will be paying foreign exchange fees for converting currency.

Visit Platform

For investing: Capital at risk.

Author Avatar

By Clare West

check Fact Checked

4.0out of 5

Visit Platform

Clare's view:

The Verdict

Average Success Rate

50%

infoWise 5-Year Avg
The following dataset includes the performances of ready-made portfolios/funds offered by investment platforms and may include both actively and passively managed ready-made portfolios/funds. Performance indicated is also net of all fees to 31st January 2024, unless stated otherwise; any tiered fee structure will be disclosed. Ready-made portfolios/funds that include cryptocurrencies or any other securities outside cash and equities are not included in the dataset. The dataset only includes ready-made portfolios/funds which are explicitly advertised by their respective platforms as being for ‘beginners’, and which are exclusively offered by the platform itself. Funds which are managed by other providers and may be identically offered across multiple platforms were not included in this dataset. For example, the Vanguard UK All Share Acc. ETF was offered by Plum, but as it is not directly managed by Plum and customers could reasonably access it on multiple platforms, it was not included for the purposes of this research. Other discretely advertised securities or investments are not included.

26.4%

infoIndustry avg.
The industry average is the median average of all fund/ready-made portfolio performance figures we collated from 23 investment providers. To see the full dataset, visit X page.
Whether you are looking to send money abroad, keep your exchange rate costs low when trading, or get a good deal on your holiday spending money, adding Wise to your wallet could be the smart move.

Wise offers the interbank exchange rate - the equivalent of trade costs - on all major currencies. That's something you won't find offered by many providers. If your provider uses the Visa or Mastercard exchange rate, you'll probably find the differences between those rates and the interbank rate are marginal on smaller amounts. However, if you're paying for big ticket items like accommodation, or trading large volumes of foreign stocks, those small differences could really add up.

However, there are foreign exchange fees to pay with Wise. Rates vary according to the currency you're exchanging but are generally relatively reasonable - certainly lower than the rates you're likely to be paying with a high street bank for using your card abroad or withdrawing cash. On cash withdrawals, Wise allows you to withdraw £200 per month without paying fees, which is a bonus if you factor in the excellent exchange rate you'll also be getting. However, £200 per month isn't as much as some other providers offer fee-free. Starling Bank and Chase offer almost unlimited fee-free cash withdrawals at foreign ATMs.

One other thing that Wise has going for it - there's an option to invest any money you're holding so it can potentially be gaining stock market returns while it's not being used.
arrow-down-orangeRead More
quote

Pros

  • Uses the interbank exchange rate (the real exchange rate) with no mark-up
  • Low foreign exchange fees
  • 90% of all money transfers arrive within 24 hours
  • Lets you hold and convert 40+ currencies
  • 82% of Trustpilot reviews are 5-star
  • Virtual and physical debit card available
  • Possible to have your salary paid directly into your Wise account in the currency of your choice
  • Offers investing opportunities direct from you Wise account
quote

Cons

  • Foreign exchange fees to pay
  • Only £200 per month is fee-free from ATMs
  • Physical debit card costs £7
  • Transfer times can be slower than Revolut
  • Verdict4.0
  • Fees4.0
  • Safety5.0
  • Education4.5
  • Customer Service5.0
  • Portfolio View

Clare's view:

Who do I recommend it for?

Average Success Rate

50%

infoWise 5-Year Avg
The following dataset includes the performances of ready-made portfolios/funds offered by investment platforms and may include both actively and passively managed ready-made portfolios/funds. Performance indicated is also net of all fees to 31st January 2024, unless stated otherwise; any tiered fee structure will be disclosed. Ready-made portfolios/funds that include cryptocurrencies or any other securities outside cash and equities are not included in the dataset. The dataset only includes ready-made portfolios/funds which are explicitly advertised by their respective platforms as being for ‘beginners’, and which are exclusively offered by the platform itself. Funds which are managed by other providers and may be identically offered across multiple platforms were not included in this dataset. For example, the Vanguard UK All Share Acc. ETF was offered by Plum, but as it is not directly managed by Plum and customers could reasonably access it on multiple platforms, it was not included for the purposes of this research. Other discretely advertised securities or investments are not included.

26.4%

info Industry avg.
The industry average is the median average of all fund/ready-made portfolio performance figures we collated from 23 investment providers. To see the full dataset, visit X page.
arrow-down-orangeRead More
quote

Pros

  • Uses the interbank exchange rate (the real exchange rate) with no mark-up
  • Low foreign exchange fees
  • 90% of all money transfers arrive within 24 hours
  • Lets you hold and convert 40+ currencies
  • 82% of Trustpilot reviews are 5-star
  • Virtual and physical debit card available
  • Possible to have your salary paid directly into your Wise account in the currency of your choice
  • Offers investing opportunities direct from you Wise account
quote

Cons

  • Foreign exchange fees to pay
  • Only £200 per month is fee-free from ATMs
  • Physical debit card costs £7
  • Transfer times can be slower than Revolut
  • arrowVerdict
    4.0
  • arrow Fees:
    4.0
    Register: £0
    Foreign exchange fee for converting currency: From 0.33% (fees vary according to currency)
    Sending money: From 0.33% (fees vary according to currency)
    ATM withdrawals under £200 p/mo: Free
    ATM withdrawals over £200: 1.75% + £0.50 per withdrawal
    UK customers are limited to £30,000 p/mo spending cap and £4,000 p/mo withdrawals from ATMs
    Cost for a physical debit card: £7.00 (virtual cards are free)
    Interest on cash: 4.66% variable rate on your GBP balance
    arrow-down-orangeRead More
    quote

    Pros

    • Interbank exchange rate used for currency conversion
    • Foreign exchange fee is a reasonable 0.33%
    • Free ATM withdrawals if total is less than £200 per month
    quote

    Cons

    • 1.75% + £0.50 per withdrawal fee
    • Charge made to get a physical debit card rather than using app
  • arrowSafety:
    5.0
    Wise is authorised by the UK Financial Conduct Authority (FCA). That's important as if a foreign exchange service is simply registered with, rather than authorised by, the FCA, then you won't get the same protection you should get if a firm is authorised by the FCA.

    If your money transfer company goes bust while holding your money, is is highly unlikely to offer you the same protections as if your everyday bank holding your savings account goes bust. If it is authorised by the FCA (rather than just ‘registered' with the FCA) then it should abide by rules that state your money should be kept separate from the firm's own money. However, there are no guarantees you'll get your money returned to you if it turns out the firm wasn't abiding by those rules.

    More information on Wise Plc and whether this platform might be a good addition to your portfolio can be found here:

    Wise Plc: Company performance analysis
    quote

    Pros

    • Authorised by the Financial Conduct Authority
    • Under FCA rules, Wise is obliged to keep your money in separate accounts to its own
    quote

    Cons

    • No Financial Services Compensation Scheme (FSCS) protection for money held with foreign exchange services
  • arrowEducation:
    4.5
    Wise does an excellent job of providing free, useful information on a wide variety of topics around money transfers and currency conversion. It also have first class educational pages comparing rival services which I've found to be very balanced and fair, rather than solely about promoting Wise in all circumstances. That's the kind of educational service I like - one I can trust.
    quote

    Pros

    • Wise blog has helpful information
    • All resources are written in plain English
    quote

    Cons

    • Mostly a US-focus so examples aren't tailored to UK customers
  • arrowCustomer Service:
    5.0
    The first place you'll be directed to if you have a question is the online Help Centre. If you don't find the answer you need, you can either send an email, make a phone call during business hours, or request a call back.
    quote

    Pros

    • Online Help Centre (FAQs)
    • Email usually responded to within 24 hours
    • Phoneline available during business hours, or your can request a callback
    quote

    Cons

    • No web chat service
  • arrowPortfolio View
    “T212

update-icon

Updates

Who do I recommend Wise for?

There are three groups of people Wise would work for:

  • Traders buying non-GBP stocks, funds or other international assets wanting to avoid high A foreign exchange (FX) fee is added to all trades involving foreign currencies. If you buy a stock that trades in US dollars, for example, and your home account is in GB pounds, you’ll need to pay an FX fee.FX feesinfo charged by trading platforms
  • Holiday-makers and travellers looking to keep costs to a minimum when spending money away from home
  • Workers or business owners needing to transfer wages or income to other countries

The low foreign exchange fees and access to currencies at the interbank exchange rate, means it’s possible to exchange currencies at the very best rates.

It’s easy and free to set up and account with Wise, so even if you only need to send or spend money in a foreign currency once in a while, it could be worth it for the potential cost savings.

4.0out of 5

Fees

The ace up Wise’s sleeve is undoubtedly the interbank exchange rate it is able to offer customers.

Also known as the mid-market rate or the real exchange rate, it’s usually considered the preserve of big banks and large brokers trading large volumes of currency, and so is rarely available to us little people, as you can see from this table:

However, with Wise you’ll need to pay a fee to use your debit card to exchange currency, or use a foreign ATM once you go over the £200 free ATM withdrawal limit. The FX fees charged by Wise are reasonable and certainly still far lower than you’ll pay to use a debit card issued by one of the big high street banks as you can see from the table below, but bear in mind that other providers – Starling Bank, Chase and Kroo, for example, – offer almost unlimited fee-free use of their card abroad.

Wise’s approach is to hide nothing when it comes to fees, and I like that. There’s a very helpful conversion calculator on its website, and a comparison tool where it’s made clear whether it’s Wise, or a competitor, which can offer the fastest transfer, the best exchange rate, or the lowest fees. Nice work, Wise. It’s that kind of transparency that makes me feel confident in a provider.

Awards

info

Wise vs

FAQs

Wise is authorised by the UK Financial Conduct Authority which means customers should safeguarded by the rules authorised-companies are bound by. However, any foreign currencies you hold in a Wise account are not covered by the Financial Services Compensation Scheme so would be at risk of losing money if Wise went bust while you held foreign capital.

No, Wise is not a bank. It is a Money Services Business. The Wise Account does offer access to some features, however, which are similar to those available from bank accounts, such as the option to hold a balance, send and receive payments, and spend with a linked card.

Wise offers FX fees starting at 0.33% which is reasonably good when compared to its competitors. It also offers access to the interbank exchange rate – the real exchange rate – meaning you’ll be able to keep costs lower when changing currencies.

Ask the Insiders

Have a question about Wise that we haven’t covered? Ask it here and we will get back to you as soon as possible!

Content
compare-icon
Platform's selected