Banks and other money transfer agencies will try to lure you with marketing ploys to use their service. Don't fall for the hype! Guest author, Daniel Abrahams, has the scoop on how to make the most of your next international transfer.
The internet has made our lives easier than ever and financial transactions are no exception. Online banking, credit card management, access to savings accounts, and transferring money from one account to another can now be done at the touch of a button no matter where we are or what we're doing.
International money transfers are another service that has benefited from internet technology. Nowadays, you could have your money winging its way from your home account to an overseas account in seconds. But what is the best way to make an international money transfer and how do you ensure you make your money go further?
Here are a few tips:
Don't Pay High Bank Charges
Many people think of their bank first when considering making an international money transfer, but in fact this could be the most expensive method. Banks are not the best option if you are looking for a competitive exchange rate and you could be paying up to 85% more than you need to. There may also be high transfer charges to pay - most banks charge between $25 and $65 to transfer your cash no matter how long you may have been a customer. Consider FCA authorized non-bank foreign exchange specialists.
Shop Around for Money Transfer Options
While your bank may be dependable, there are other cheaper and just as dependable options to consider. An FCA regulated money transfer specialist works with the live foreign currency markets and understands the factors that can drive currency fluctuations. Often, they quote live rates that are 85% cheaper than high street banks, who only set rates once or twice a day. They will be able to give you advice on the best time to transfer and can even fix your exchange rate for up to 2 years for you.
You can compare exchange rates and the services offered by money transfer specialists online. Using a foreign money transfer comparison website allows you to see all exchange rates side by side, read consumer reviews, and have an at-a-glance view of the services offered by online transfer companies. It’s a great way to find the best deal to suit your needs.
Don't Fall for the 0% Commission Hype
We’ve all fallen for marketing hype at one time or another. Whether it’s a great deal at the supermarket or a free software trial, clever marketing can really influence the decisions we make. The money transfer market is just the same and there are many tactics banks, airport exchanges, and money transfer companies use to influence you to choose their services. One of these ploys is the 0% commission. It's crucial to remember that this type of offer doesn’t hold any weight and here’s why:
A profit-making company is not going to offer their services for nothing (although that's what 0% commission implies). So, how are they making their money? The answer lies in a poor exchange rate. These companies buy their currency for one price and then sell it to you for another price, once they have taken a significant piece of the pie. Always use the actual exchange rate to determine what is a good deal and ignore all other inflated marketing tactics.
Using a money transfer service doesn’t need to be challenging and it certainly doesn’t need to be expensive. Shopping around for the right FCA approved money transfer specialist will ensure you get a great exchange rate and access to professional money transfer advice.
Daniel Abrahams is a personal finance blogger, startup mentor at ABC Startup, and co-founder of MyCurrencyTransfer.com. Recently, the company debuted it’s new product CurrencyTransfer.com at SXSW in Austin, Texas.