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Remittances from US to Latin America — complete comparison

How to send money from US to Mexico, Central America, South America. Wise vs Remitly vs Western Union vs MoneyGram vs banks. Fees, speed, best options by country.

Sending remittances from US to Latin America

Remittances are vital income for millions of families in Latin America. US sends over $150 billion annually in remittances, primarily to Mexico ($60B+), Guatemala ($20B+), Honduras ($10B+), El Salvador ($8B+). This guide compares major services.

Today's US dollar exchange rates

Automatically updated: Tue, 09 Jun 2026. Reference mid-market rate — your remittance service may apply a margin.

Country	Currency	$1 USD =	$100 USD ≈
Mexico	MXN	17.45	1,745 MXN
Guatemala	GTQ	7.61	761 GTQ
Honduras	HNL	26.59	2,659 HNL
Colombia	COP	3,602.82	360,282 COP
Dominican Republic	DOP	58.16	5,816 DOP
Peru	PEN	3.47	347 PEN
Nicaragua	NIO	36.70	3,670 NIO

El Salvador and Ecuador use the US dollar — no conversion needed. For Venezuela, Argentina, Cuba, the official rate differs sharply from what families actually receive — verify the real rate with your remittance service.

See all corridors on the dedicated US dollar exchange rates page.

Quick service comparison

Service	Typical fee	Exchange rate	Speed	Best for
Wise	$1-$5 + 0.5%	Mid-market (best)	1-2 days	$500+ amounts, transparency
Remitly	$0-$4.99	Good (small margin)	Minutes to 3 days	Economy/express, multiple countries
WorldRemit	$1-$3	Good	Minutes to 3 days	Cash pickup + apps
Xoom (PayPal)	$2.99-$9.99	Fair	Minutes	If already use PayPal
Western Union	$5-$15	High margin	Minutes	Cash pickup big networks
MoneyGram	$4-$15	High margin	Minutes	Walmart pickup, agencies
Traditional bank wire	$25-$50	Very high margin	1-3 days	Very large transfers ($10K+)

By service

Wise (formerly TransferWise)

Best for: transparency + mid-market exchange rate

Fee: ~$1-$5 + 0.5-1.5% (much lower than WU)
Rate: mid-market (same you see on Google) — Wise only earns visible fee
Speed: 1-2 days typically
Methods: debit card, ACH, wire from your bank
Receipt: direct deposit to recipient’s bank account
Accepts ITIN: ✅ yes

Remitly

Best for: speed + pickup options

Fee: $0-$4.99 (sometimes $0 with first-transfer promo)
Rate: competitive (1-2% margin)
Speed: Express (minutes, more expensive) vs Economy (3 days, free or $0.99)
Receipt: bank deposit, cash pickup (Elektra, OXXO in Mexico), home delivery
Accepts ITIN: ✅ yes

Western Union

Most known but NOT cheapest. 2-5% exchange rate margin. Best for receivers needing cash pickup.

Best options by receiving country

Mexico

Bank deposit: Wise or Remitly Economy
Cash pickup (OXXO, Elektra): Remitly Express or Western Union
Digital wallet (SpinBy): Wise (cheapest)

Guatemala

Bank deposit: Wise or Remitly
Pickup at Banrural: Western Union (Banrural is agent)

El Salvador

USD is local currency — Wise is excellent (no conversion)
Chivo wallet (official) has low trust due to instability

Colombia

Wise particularly good for low COP margin
Bancolombia most foreign-transfer-friendly

Important IRS rules

If you send $10,000+ in a year to one person:

Gift Tax: if it’s a gift, exempt up to $18,000/year per recipient (2024)
Not deductible as charity if going to family
FinCEN reporting if aggregate >$10K in foreign accounts — see FBAR

Tip: schedule recurring sends

If sending monthly, set up automatic transfers in your service to:

Avoid forgetting
Average exchange rates over time
Reduce mental friction

Last verified: 2026-05-25.

General procedural information for educational purposes. Not legal, tax, or immigration advice. Laws and fees change — verify with the issuing agency before taking action. For case-specific guidance, consult a licensed immigration attorney or other appropriate professional.

ITIN — get your taxpayer ID for banking — required to open most accounts without SSN
ITIN mortgages — home loans — financing home purchases under ITIN
Form an LLC for business banking — separate business and personal finances under ITIN
State tax obligations — interest income is taxable under federal and most state law
Find an immigration attorney — for status issues affecting account opening

Frequently asked questions

What's the cheapest way to send money to Latin America?

For bank deposits, Wise is usually cheapest because it uses the mid-market exchange rate and charges only a small visible fee. For cash pickup, Remitly Economy or Western Union may fit better despite higher costs. Always compare the total amount your recipient actually receives, not just the upfront fee.

Does the fee or the exchange rate matter more?

Usually the exchange rate. Many services advertise a low or $0 fee but build their profit into a worse exchange rate (a ‘margin’), which can cost more than a visible fee on larger transfers. Compare the final amount received in the local currency to see the true cost.

How fast does the money arrive?

It depends on the method: cash pickup and ’express’ options can arrive in minutes, while bank deposits and ’economy’ options typically take 1–3 business days. Faster usually costs more.

Can I send remittances with an ITIN and no Social Security number?

Yes. Major services such as Wise and Remitly let you send money with an ITIN. You’ll verify your identity with an ID and may need a US bank account or debit card to fund the transfer.

Is there a US tax on money I send home?

Sending your own money abroad is not taxable income. However, a federal excise tax on certain outbound remittance transfers has been enacted — the rate and which transfers are affected (for example, cash vs. bank-funded transfers) can change, so verify the current rule before sending. Separately, very large gifts to one person in a year can trigger gift-tax reporting. For specifics, consult a tax professional.

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General information, not legal advice. MigrantUSA is an independent publisher and is not a law firm; using this site does not create an attorney-client relationship, and this content is not a substitute for advice from a licensed attorney about your specific situation. US federal, state, and local government procedures, fees, and forms change. Always verify current details directly with the relevant agency before acting. For immigration, tax, or other legal matters specific to your situation, consult a licensed attorney or BIA-accredited representative.