How to Send Money to Mexico and Latin America from the USA
Every year, Latinos in the United States send more than $150 billion in remittances back home to Latin America. Countries like Mexico, Guatemala, El Salvador, Colombia, Honduras, and the Dominican Republic depend in part on this flow of money to support families, pay for education, and keep small businesses running. If you're one of the millions of people who send money to Mexico or anywhere in Latin America, you already know how important it is to get every dollar to its destination.
But here's the problem: between hidden fees, manipulated exchange rates, and misleading promotions, many families lose between 5% and 10% of every single transfer. That adds up fast. This guide breaks down the real options available to you, with current rates and no sugarcoating, so you can keep more of your hard-earned money where it belongs.
The Real Cost of Sending Money: Beyond the Fee
When a service advertises "no fee" or "$0 commission," the business is usually making its money on the exchange rate. This is the trap that catches most people.
Here's how it works: if the real exchange rate (called the mid-market rate) is 17.5 pesos per dollar and the service only gives you 16.8 pesos per dollar, on a $500 transfer you lose about $40 extra, even though there's no visible fee being charged. The company quietly pockets the difference.
So how do you compare services correctly? Always look at the final number: how many pesos (or whatever currency your destination uses) the person actually receives at the end. That's the number that matters. Don't get distracted by flashy "free transfer" banners. Calculate what lands in your family's hands.
Comparison of Services to Send Remittances from the USA
Here's an honest breakdown of the most popular services for sending money abroad from the United States. Use this as your starting point before every transfer.
| Service | Typical Fee ($500) | Exchange Rate | Speed | Best For |
|---|---|---|---|---|
| Wise | $2–4 | Real mid-market rate | 1–2 days | Best total cost, large transfers |
| Remitly | $0–3.99 | Slightly below real rate | Minutes–2 days | Speed, first transfer free |
| Xoom (PayPal) | $4.99–9.99 | Below market | Minutes–1 day | Cash pickup at stores |
| Western Union | $5–15 | Well below real rate | Minutes–3 days | Cash without a bank account abroad |
| MoneyGram | $5–10 | Below real rate | Minutes–3 days | Wide network of physical locations |
| Zelle / Venmo | $0 | N/A (US only) | Immediate | Transfers within the USA only |
| Direct Bank (wire) | $15–50 | Varies by bank | 1–3 days | Very large transfers, extra security |
Country-by-Country Breakdown
The best option often depends on where your money is going and how your family wants to receive it. Let's look at the most common destinations.
Sending Money to Mexico
Mexico is by far the top destination for remittances from the US. For the cheapest option overall, Wise usually wins because it gives you the real exchange rate. If your family needs the money in minutes, Remitly is a strong choice, and they often offer a free first transfer. If your relatives don't have a bank account and need to pick up cash at a local store, Western Union or Xoom have huge pickup networks throughout Mexico, including OXXO and Elektra locations.
Sending Money to Guatemala, El Salvador, and Honduras
For these Central American countries, cash pickup is still very common. Remitly and MoneyGram have strong coverage here. El Salvador uses the US dollar, which simplifies things since there's no exchange rate to worry about, so focus only on the fee. For Guatemala and Honduras, always compare the final amount received in quetzales or lempiras.
Sending Money to Colombia, Peru, Ecuador, and Venezuela
For South America, Wise and Remitly are usually the best for bank deposits. Venezuela is a special case due to currency restrictions, so check which services currently operate there and whether your family can receive funds in dollars or through a digital wallet. Ecuador, like El Salvador, uses the US dollar, so prioritize the lowest fee.
Sending Money to the Dominican Republic and Puerto Rico
For the Dominican Republic, Remitly and Western Union offer reliable cash pickup and bank deposits. Remember that Puerto Rico is part of the US financial system, so you can simply use Zelle or Venmo for free, immediate transfers, just like sending money within the mainland.
How to Save More on Every Transfer: Practical Strategies
Small habits can save you hundreds of dollars a year. Here are the most effective ones:
- Compare the final amount received, not the fee. Always check how much money actually arrives.
- Send larger amounts less often. Fees are often flat, so one $1,000 transfer usually costs less than two $500 transfers.
- Use first-transfer promotions. Many services offer a free or discounted first transfer. Take advantage of them.
- Pay with a bank account, not a credit card. Credit cards add extra fees and may be treated as a cash advance.
- Watch the exchange rate. When the dollar is strong, your family receives more for the same amount.