The private companies cater primarily to people who don't have bank accounts, expatriates sending money to their home countries, traditional bank customers who need to move money faster than the bank can and tourists far from their local banks. The agent will issue the recipient a check, then cash it for them. Some banks, on the other hand, will do transfers for their customers only. There are also fees on the receiving end with banks. Before initiating an international transfer that involves currency exchange, a few phone calls can save you some bucks.
Exchange rates vary daily.
Check with commercial banks, private systems such as Western Union and MoneyGram , and currency houses such as Thomas Cook to compare the difference on rate spreads. Jeff Stehm, an analyst for the Federal Reserve, recommends checking the wholesale exchange rates published in newspapers. The bottom line is, it's going to pay to shop around. International transfers pose the greatest risk. Foreign banks are not always as heavily regulated or technologically advanced as U.S. banks.