Mexico and My Money: How to move money into Mexico from abroad without losing a bundle

Foreigners relocating to Mexico often start with most of their liquid assets in banks outside of Mexico. They seek cost-effective ways to transfer money across borders for everyday expenses like rent, groceries, or big-ticket items like cars or real estate. ATM withdrawals are a practical solution, but banks usually impose daily limits and high exchange rate fees.

When transferring small sums, Mexican bank ATMs are the most convenient option. Two fees apply: a "convenience" fee ranging from 30 to 200 pesos and an exchange rate commission. Some U.S. banks waive these fees, and foreigners should avoid standalone ATMs in non-bank locations, as they often charge excessive fees. To avoid exchange rate markups, decline the Mexican bank's conversion rate.

For larger transfers, electronic transfers (EFTs or ACH transfers) are more cost-effective than ATM withdrawals. Providers like Wise, Remitly, and Revolut can handle large sums, but fees and wait times differ significantly. Wise transfers can be completed in seconds, while Remitly may take up to four days. Exchange rate markups can range from 0.8% to 3% over the mid-market rate.

In rare cases, such as transferring over US $500,000 for a home purchase, specialized platforms like OFX and Wise can accommodate high-value transactions, albeit with longer wait times. The safest method for large transfers is an international bank-to-bank wire, which uses the SWIFT payment system and requires identity verification. However, international wires may take several days and face higher fees (up to US $50) and exchange rate markups (2% or more).