The Hidden Cost of Sending Money Abroad from Japan: TTM, TTS and TTB Exchange Rates

How much do Japanese banks take when you send money abroad?

When you convert Japanese yen into a foreign currency and send it abroad, for example when applying for citizenship in another country, the bank takes a spread.

The key terms are TTM, TTS and TTB.
The explanation below makes them easy to understand.
*Source: ChatGPT

*Amounts are as of May 2024 (the example below). This article is an English version of our Japanese guide, adapted for foreign residents of Japan and international investors.

In short: TTM (telegraphic transfer middle rate) is the bank's mid-market reference rate for the day; TTS (telegraphic transfer selling rate) is the rate at which the bank sells foreign currency to you when you convert yen into foreign currency; and TTB (telegraphic transfer buying rate) is the rate at which the bank buys foreign currency from you when you convert it into yen. The difference between TTM and TTS or TTB is the bank's spread.

A concrete example

In May 2024, I converted Japanese yen into Australian dollars (AUD) and sent the money abroad from one of Japan's megabanks.

The fees paid to the megabank at that time were JPY 11,000.
*Remittance fee JPY 8,500 + correspondent bank fee JPY 2,500

In addition, the difference between TTM and TTS cost about 2.3% of the amount sent.
*The documents the bank gave me showed only the TTS (the conversion rate), so this is a cost you cannot see unless you check it yourself.

For example, if you send JPY 1 million abroad in AUD from a Japanese megabank, you pay JPY 11,000 in fees plus a hidden cost (the exchange rate spread) of JPY 23,000, for a total cost of about JPY 34,000.

What I heard from someone working at a foreign investment bank

I was told: "Banks don't disclose it to customers, but it is normal for them to take an exchange rate spread of a few percent."

Needless to say, when the amount sent is large, even 1% becomes a considerable sum, so this is a cost to watch out for.
Back to columns (in Japanese)