Do wire transfers always incur a fee?

Yes. Though not directly or obvious to the sender (Remitter) or the receiver (Beneficiary).

In the Remittance world this is called a free-send model.

If the Wire-transfer is domestic and within the bank, usually no charge. If the wire-transfer is between different banks, a small charge is applicable.

If the wire-transfer is international, and the sending bank cites, no-fees, then two things can happen:

• The conversion rate you get for the currency in the beneficiary's country is less, so the banks make money on this.
• The funds might not immediately be credited to the beneficiary's account when received by the beneficiary's bank. They are release between 2-5 days time, this is called a float on the money, i.e. the bank earns interest on this money via over-night lending.