Every day, countless people make international money transfers. Is it easy to send money to someone in another country? Well, it depends. If you don’t take enough care, it may cost you much more money, as most people are oblivious to the hidden fees. Let’s find out more about how to make the process safe and cost effective.
For sending money overseas, you will have to bear two types of costs: the currency conversion cost and the cost to transfer the money to your desired country. The service provider can be an FX broker, a bank or a money transfer company. The thing is that they don’t convert one currency to the other on the basis of the inter-bank rate. Instead, they make the exchange at a lower rate making a good deal of profit. Give below are a few tips that may help you go through the process efficiently.
Foreign Exchange Brokers
Acting as intermediaries, foreign exchange brokers deal with a lot of banks and provide the best exchange rates. While their primary role is to convert currencies, they can also help you send money abroad for a reasonable fee.
While this option is cost effective, especially if you want to transfer over $5000, the process can take longer to complete. Choose this option if you don’t have to send your funds abroad urgently.
Banks are the most common means of international money transfers all over the world. However, the fact of the matter is that banks are known for charging hidden fees for money transfers, and the fees will continue to go up as the amount of money that needs to be transferred goes up. But the advantage of using a bank to do this job is that banks are considered the safest way of transferring money abroad. So, if you are planning to do the transfer through a bank, make sure you choose a bank that charges a minimum amount for transfers.
Money Transfer Providers
If you want to send less than $5000 to someone in another country, money transfer providers is probably your best option. They are best in terms of cost of transfer. Typically, they offer bank-to-bank transfers. You can also find some providers who allow you to receive cash at cash pick-up branches.
Online Money Transfer
These service providers allow you to send money abroad charging a minimal fee. Usually, they charge just $1 extra for the transfer. Some providers don’t even charge this fee.
These providers are regulated by the financial authorities of the same country they operate in. They use the state-of-the-art financial technology for sending and receiving funds. So, you can count on them with your eyes closed.
With online money transfer, you don’t need to visit a financial office. All you need to make the transfer is a computer and a fast internet connection.
So, before you choose any of the three money transfer services mentioned, do your homework and compare them with each other. You can go with the one offering best services at the lowest cost.