Do SIM to Micro SIM card cutters really work?

My friend gave me his old unlocked iPhone 4 and I found out that is uses a micro SIM card instead of the regular SIM card that I use. I went to my phone provider I went to said that he couldn't transfer my account to a different SIM card unless I pay a certain fee. I want to know if I can get a SIM to micro SIM cutter and if I can put it in my iPhone.

Yes you can, it is pretty simple and cheap, you can get the kit for a few quid on ebay.