Send $1,000 from US dollars to euros and Wise takes about $3.44, while MoneyGram takes about $42.31. The gap is almost entirely in the exchange rate. MoneyGram advertises a small fee but bakes a large markup into the rate it gives you, and that hidden cut is where the real cost lives.
For a transfer into a bank account, Wise is the clear winner on price. MoneyGram's real strength is something else: cash pickup, and reach into places Wise doesn't cover. The figures below use the current mid-market reference; Wise may use an account-holder API estimate, while other providers use stored published fee and markup models rather than live quotes.
- On price, Wise wins by a mile. About 0.47% all-in on a $1,000 transfer, against around 4% for MoneyGram once the markup is counted.
- MoneyGram's fee looks small, but the markup isn't. A fee of around $5 sits on top of an exchange-rate markup of 2.5% or more, and the markup is the bigger cost.
- The gap holds as amounts grow. MoneyGram's fixed fee matters less on a big transfer, so its percentage settles near the markup; Wise stays around half a percent.
- MoneyGram's edge is cash, not cost. Cash pickup and a vast agent network are the reasons to use it, when the recipient can't take a bank transfer.
How Wise charges
Wise hands you the mid-market rate and adds a small, variable fee on top, around 0.33% to 0.5% on popular routes like US dollars to euros, plus a fixed charge of roughly $0.61. No subscription, no monthly limit, no weekend surcharge. The number you see at checkout is the number you pay. On a $1,000 transfer that works out to about $3.44, or 0.34% of the total.
The appeal is that you always know what you'll pay. You never check the calendar or watch a running total, and the percentage barely moves as the amount grows. The Wise provider page has the full breakdown by route.
How MoneyGram charges
MoneyGram is a traditional money-transfer operator, and it prices like one. You'll usually see a modest upfront fee, often around $5 on a US-dollar-to-euro transfer, which sounds cheap. The cost you don't see is in the exchange rate. MoneyGram gives you a rate that's worse than the mid-market one by 2.5% or more, and on the route we model it's about 3.75%. It keeps the difference. On $1,000 that markup alone is roughly $37, before the fee is even added.
Add the fee and the all-in cost lands near 4.23%, or about $42.31 on a $1,000 transfer. The exact figure swings a lot by route, payment method and delivery method. Paying by card costs more than paying by bank debit, and cash pickup is priced differently again. The MoneyGram provider page shows our modelled estimate; always confirm the final number on moneygram.com.
Head to head, by amount
The ranking doesn't flip here the way it does in some matchups. Wise is cheaper at every size we tested; what changes is how wide the gap is. Here's the same US-dollar-to-euro transfer at two sizes, with the current estimates.
$1,000: the markup does the damage
On a $1,000 transfer, Wise sits at about 0.34% while MoneyGram is near 4.23%. MoneyGram's $5 fee looks tiny next to Wise's percentage, but the markup underneath dwarfs it. This is the size where the gap stings most in plain dollars, since the fixed fee is still a meaningful slice of a small transfer.
$10,000: the fixed fee fades, the markup stays
At $10,000 the $5 fee is a rounding error, so MoneyGram's all-in percentage drifts down toward the 3.75% markup and settles just above it. Wise's percentage barely moves. In cash terms the gap is now large: a few hundred dollars versus a few tens. The bigger the transfer, the more that markup costs you.
Who should pick what
Pick Wise if you're sending money into a bank account, you want the cheapest total cost, or you're moving a larger sum where a markup of several percent turns into serious money. For most everyday transfers, this is the one.
Pick MoneyGram if the recipient needs cash in hand, doesn't have a bank account, or lives somewhere Wise can't send. MoneyGram's agent network reaches places the app-based providers don't, and that reach is worth paying for when there's no alternative.
Check Interactive Brokers when a large currency order will fund portfolio investing, trading or hedging inside the brokerage. Its spot-currency commission can sit far below both providers at scale, but it does not replace MoneyGram cash pickup or a straightforward payment to another person. Our comparison tool lines up the estimated costs.
Frequently asked questions
Is Wise cheaper than MoneyGram?
Almost always, for a transfer into a bank account. Wise's all-in cost typically sits under half a percent, while MoneyGram's exchange-rate markup alone runs to 2.5% or more before its fee is added. The gap is widest on the routes where MoneyGram's markup is highest. The one time MoneyGram can make sense on value is when the alternative is no transfer at all, because the recipient needs cash.
Why does MoneyGram cost more if its fee is so low?
Because the fee is only part of the price, and usually the smaller part. MoneyGram makes most of its money on the exchange rate: it offers you a rate slightly worse than the real mid-market one and keeps the difference. On a $1,000 transfer, a markup of around 3.75% is roughly $37, which dwarfs a $5 fee many times over. Always look at the rate you're offered, not just the headline fee.
Can I use MoneyGram for cash pickup and Wise for everything else?
Yes, and that's a sensible way to use both. Wise is built for bank-account transfers and is far cheaper there, so use it for rent, invoices and sending to someone's account. Keep MoneyGram in your back pocket for the moments someone needs cash in hand, is traveling, or is in a country the apps don't cover. Matching the provider to the payout method usually saves more than sticking with a single brand for every transfer.
Cost figures are worked out from each provider's published fee structure applied to the current mid-market reference rate, modelled estimates for typical routes. MoneyGram's real cost varies by route, payment method and delivery method; the figures shown are representative. Always confirm the final quote on the provider's own site before you transfer. We may earn a commission from affiliate links at no extra cost to you; this never affects rankings. Nothing here is financial advice.
Sources: Wise pricing (opens in a new tab), MoneyGram fees (opens in a new tab), IBKR spot-currency commissions (opens in a new tab), Interactive Brokers (U.K.) Limited Client Agreement for Carried Products (opens in a new tab), IBUK and IBLLC Client Agreement (opens in a new tab), IBKR third-party withdrawals (opens in a new tab). Accessed 22 August 2026.