Best ways to Transfer Money Overseas

You may work abroad or perhaps own a rental property overseas, perhaps you just make regular money transfers internationally for a mortgage, pension, or to a loved one. Regardless of the why what’s important is that you know how to get the best exchange rate possible when transferring your cash. If you don’t know how… you could be losing serious amounts of money because of bad exchange rates (and hidden fees).

Ah yes, the hidden charges – the bane of everyone’s existence when it comes to monetary transactions. The fluctuation of currency has been wild over the last few years, especially with the Brexit vote and the US election results. It has thrown the Euro, Pound, and US Dollar into disarray and the rate changes almost daily. So, being aware of this is an important part of the process.

It doesn’t matter where you are based, there’s a good chance that the first place you visit when in need of a money transfer is your bank. The truth is, depending on the type of account you have, the set up offered by the bank will have hidden charges and usually poor exchange rates to boot. They rely on customers being unaware of the rates or trusting their bank to provide them with a good deal. You are part of a captive market that they are only happy to take advantage of.

It’s Time to Shop Around

When you are dealing with an international money transfer there are two costs to consider: the exchange rate and the inevitable fees. So, when you are shopping around it is vital that you bear these points in mind and compare them properly.

  • The Exchange Rates.

A lot of banks claim that they are commission free, and on the surface, that may be true. However, they generally offset this with a dummy exchange rate. They may also be unable to provide you with comparison rates, which should be a red flag immediately.

  • The Fees.

Fees are simply to charges you will incur for transferring your money internationally, as well as the fees that may come from the bank you are transferring the money to.

It all comes down to just one question: how much currency are you going to receive in exchange for the cash you are transferring once the charges have been deducted?

Exchange rates are set between the bank and the brokers who buy and sell currency. You won’t be able to access the rates, you will only be able to compare the rates offered by a variety of providers.

The Calculation of Exchange Rates

The euro is almost equal to the pound right now, so how exactly are rates set? The rate you receive will depend on a few different factors, which may include how much you are transferring, the time frame, the currencies you are working with, and the exchange rates at purchase.

Choosing a Currency Specialist

Currency companies are a great way to avoid bank feeds altogether and it usually means you get your money transfer completed quicker. In many cases, the transfer can be done in just a day, though it may take two working days. The timing can be important in transferring money, especially when it’s large amounts being sent.

Most of us are guilty of being completely unaware of exchange rates and simply making the transfer when you need to and hoping for the best. However, the more you are transferring the more you stand to lose if you make a bad deal, so the timing of your transfer is important.

There are a few things you should take into consideration when you are looking for a currency specialist.

  1. How long they’ve been operating their business.
  2. Whether they are authorised to complete the services they offer.
  3. Whether they are registered with HMC to do business overseas.
  4. Whether your money is held in a separate trust account.
  5. Whether their website shows their audited accounts.
  6. Whether they have indemnity insurance.
  7. Their staff numbers and labour turnover.
  8. Do they use SWIFT?

A lot of people underestimate just how big a deal it is to transfer money overseas. They make their transfers without putting much thought into the fees they may incur and rarely consider the exchange rates. However, PayPal (and other companies just like them) are frequently the most expensive ways to transfer your money. There are costs for exchanging currency, costs for transferring, and you end up losing a large chunk of cash for doing business with them. You may feel safer operating this way, but there are safe ways to transfer money that won’t incur such great costs to your cash.

Be smart and choose a registered currency specialist. There’s good news for you, you can use Travelex UK discount codes to get yourself an even better deal than you imagined was possible. Check them out now before you transfer your money!

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