International money transfer is something millions of people do around the world each day. From the global company who pays international bills in Dubai to the Family who wants to buy a house in Spain to the migrant worker who sends money home to his loved ones transferring funds is a regular task for most people.
But this very task can also be daunting and if not done smartly can be costly. Most people are not aware of the hidden fees that come with international transfers. When you use a Bank, a Foreign exchange broker or a money transfer company to send money abroad there are usually two costs involved. the most obvious is the cost of the service to transfer your funds and then there is the not so obvious cost to convert your money from one currency to another.
These service providers never convert your money based on the inter-bank exchange rate and make a profit by exchanging your currency at a lesser rate. the profit they make from the difference is usually known as the 'Spread'. This is a common practice and a vital revenue stream for providers. However be careful because they are not always so upfront with this cost and frankly you could be incurring high costs without you knowing. Below are a list of way you can make a safe international money transfer.
Banks are the most common way of sending money
They are large regulated financial institutions and are effective in transferring large funds due to their appropriate security. large corporations, small businesses and even individuals use banks to make international transfers every singe day and are the still the most common method of money transfer. However banks are increasingly coming under scrutiny due to their hidden transfer fees and there are cheaper methods of performing this task especially if the amount you are sending is not extremely large. Banks typically charge individuals any where from £ 20 to £ 50 per transfer and costs usually increase as the amount of transfer does. To transfer money through a bank just visit a local branch and ask a customer service advisor. Advise do your homework first! Not all banks charge the same amount.
Foreign Exchange Brokers
Foreign exchange brokers act as a middle man between the customer and the banks, they usually have relationships with a list of banks and attempt to provide the most competitive rates to trade one currency for another. The primarily deal in currency exchange but are able to transfer funds for a fee. However it can take several days to open an account and the process is rather slow. Foreign exchange services are beneficial when purchasing property abroad or for small businesses making international payments. when making international transfers over this amount they offer competitive exchange rates over $ 5000 and usually do not charge for transfer services over this amount.
Money Transfer Providers
Although money transfer providers have the sane dual costs as banks and foreign exchange firms they are much cheaper when making international transfers in amount under $ 5000.
They commonly use bank to bank transfer although some provide extra methods of receiving including cash pick up branches. Providers such as these have been around for a long time.
Online Money Transfer Providers
but thanks to the internet online money transfer providers allowing users to make international transfers at next to nothing costs and still managing to make a profit.
They have different ways of doing this. Some providers have a mid market rate which they use to decrease costs for users. Others match those wanting to exchange the same sets of currency which also helps in limiting costs related to currency conversion. In addition to this transfer charges are as little as $ 1 and some wave the fee alike.
Lastly they are usually regulated by financial authorities of their country of origin and have secure methods sending and receiving using the latest in financial technology. Some take two to three days to receive funds but the number of providers promising same day transfer are increasing. Lastly sending money online has revolutionized the money transfer market as customers are finding the while process of sending through a computer or mobile phone easy and fast compared to the hassles of visiting a local branch.
Compare the Money Transfer Market Before Sending Money
Because of the internet the number of providers are increasing each year and providers are competitive to attract customers. When you Google about international money transfer today or anything to do with sending money the search engine gives you millions of pages listing provider after provider promoting the same thing, low costs to transfer funds.
But as seen in this article not all providers are the same and it's best to shop around a little. Not all providers send to every country, have same day transfer policies and obviously are not offering the same price for a particular transfer.
Therefore comparing the money transfer market is a smart thing to do and luckily these days comparison has come to this market, Money transfer comparison sites offer you a list of providers and list based on low exchange costs ad transfer costs and provide more information about sending money online.
But beware not all comparison sites are the same either and quotes are usually approximate and not exact. of the few that currently sendthatcash.com is the easiest to understand giving users a quick way to compare many many companies offering different rates. It's completely free to use and is straight to the point. they have an informative results page and vet all the companies they list to make sure they are secure.
0 comments