9 Tips to Transfer Money Abroad Like a Pro
Every day millions of people all around the world find they need to transfer money. Some are overseas workers, sending their hard earned money home, others are expats purchasing their dream homes on sun drenched islands. Businesses a that import or export or purchase goods from abroad use money transfer, as do students taking their lessons abroad and travellers, too.
Every reason for transferring money is as unique as the person sending it, but there are nine simple tips that help anyone understand how the pros handle money transfers.
- Bank Option. Using your bank seems safe and easy, right? Your bank already has all your personal information and if the recipient has the same bank as you, your bank offers you a savings. But-wait- the cons outweigh the pros! Banks pile on massive fees and offer the worst exchange rates. Also you can only send bank to bank.
- If you must send bank to bank, open a foreign account with your back home bank to avoid double fees applied by both the sending bank and the receiving bank, especially if you will need to make regular transfers. Don’t forget that when you use banks you get higher fees And a lower exchange rate -the higher the exchange rate, the more money you will get.
- One Time Transfers often use traditional service providers like Western Union and MoneyGram. With these two global giant companies there are many options for sending money: from bank transfer, credit or debit card and cash deposit and money can be received in cash- which is why these companies have over 460,000 agencies. The trouble is that these companies are the most expensive ways to send remittance, have poor online facilities and dreadful customer service.
- Currency Exchange Companies are the best option for medium, large, business and regular transfers because their brokers specialise in foreign currencies. UK currency companies can save clients millions and are expert in employing the best financial services in the world. Look for a company that has excellent rates paired with super customer service. Check TrustPilot reviews to see what real customers say about their experiences with currency companies.
- Currency Exchange Companies can establish regular transfers on schedules and you can lock in the exchange rate for these regular payments to prevent currency volatility. This is a tool used by expats sending their pensions to their new homes abroad and also by those paying regular maintenance to properties at home and abroad. Students abroad also benefit from regular payments.
- You can also set up a forward contract which means that when exchange rates are in your favour you can lock in that rate for a year. Let’s say your business regularly transfers dollars to pounds- the post-Brexit low pound to dollar rates aren’t going to last for a year, but you could keep enjoying them with this financial tool. You don’t have to do anything but make a deposit and then you’re locking the great exchange rate in for a future date during the year when you’ll save a significant amount-and have some control over the market fluctuations when you make a large transfer.
- Moving Millions is done with patience by those making the biggest international money transfer profits. To get the best rate on large transfers-say of millions of pounds sterling or billions of dollars, those individuals and businesses who plan their transfers in advance use a limit orders to get alerted when the rate reaches a desired rate. But you don’t have to be Donald Trump to do this- and reap the profits, now that you know this tip!
- Some of the information you’ll need to register with a foreign exchange company before transferring money should be organized in advance. Your sending and receiving IBAN, or International Bank Account Number and banking account number, the name and address of the recipient’s bank – including the BIC / SWIFT / clearing code. Also be prepared to give additional details, as UK currency companies are highly regulated by FCA and are committed to preventing money laundering and other financial crime.
- Understand that there are two types of fees charged on a transaction. Some companies charge flat fees for transferring small amounts, others charge a fee based on a percentage of the amount sent. All firms that send large amounts must take a margin of the transfer- but these will amount to being far less than the hidden fees and poor exchange rates banks would charge-plus, they work harder to utilise the financial tools that save their clients’ money. Use a currency calculator to see what the bank to bank rates are and then compare rates with the ones the company quotes and you’ll see what the fees are to transfer money.