While the electricity power industry in the world continues to grow, it also becomes more traceable and smart with the developing technology. Naturally, the integration of these technologies into the electrical power systems brings with an additional cost. Most of the time producers and consumers struggle under the pressure of these additional costs and try new products that will reduce the cost. In this sense, competitive products in the market must be advantageous in terms of cost. In this study, an original IoT based transformer monitoring system has been developed by using open source software, modular and low cost components as an alternative to studies in literature. Arduino Mega 2560 microcontroller has been used as the main component in the system. The system can acquire data from a wide variety of sensors using internal and external transducers. And this data can be saved to the cloud system synchronously with the memory card on the monitoring system. The developed monitoring system has been utilized free and reliable platforms such as the ThingSpeak web interface and PushingBox Notification application. The all test process of the developed monitoring system has been carried out in the laboratory environment on a porotype transformer.