I believe that once it becomes significantly cheaper to transfer money between countries using Bitcoins, its usage will increase significantly. My question is, therefore, between which countries will a transfer (from bank account to bank account) be cheaper using Bitcoins than PayPal. For simplicity, let's say that the PayPal fees are 2,9% + 30 cents per transaction and that the amount to transfer is 100$.

From Denmark to the US, I believe that the fees will be like the following:

  • My bank account to MtGox bank account in Denmark: 0%
  • MtGox exchange fee: 0,6%
  • Loss due to market spread (difference between buying and selling price/2): 1,12%
  • Transfer of Bitcoins: 0%
  • MtGox to USD: 0,6%
  • Loss due to market spread (difference between buying and selling price/2): ~0%
  • MtGox to US bank account: 0%?

This means that there will be a 2,32% fee between these currencies if there is no fee from MtGox to US bank account, while the PayPal fees will be 3,2% for 100$. This means that Bitcoins will be a cheaper method of transfer between Denmark and the US. Now I would like to know which other countries it would also be cheaper to use Bitcoins to transfer between?

The reason why I calculate market spread as difference between buying and selling price/2 is because the market price should normally be in the middle between the buying and selling price on an exchange. The spread will depend on the daily trading volume of the exchange, and since the trading volume between Danish krones is so low, the exchange cost due to market spread is a significant expense.

1 Answer 1


In the euro zone MtGox is not cheaper for small payments like $100. Depositing and withdrawing euros both include a fee of ~1.20 euro (10 PLN) + 0.60% for the transfer.

I don't know what deposit/withdrawal fees are for US dollars, neither if there are exchanges that do not require this fee. I know Intersango does as well.

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