If you’re looking for a good deal, then a favourable exchange rate is crucial especially if you are transferring large amounts of money. So, what is the most important factor to consider before you transfer money abroad?
The answer is, it depends on your requirements at that moment in time. If you’re in a hurry and need your transaction to credit the beneficiary on the same day, then this is likely to be more expensive than if you have time and can wait at least 24 hours. Looking at the foreign exchange rate that the money transfer provider is offering as well as the fees they apply to the transaction will give you a good basis for comparison. Be mindful though that there could be additional fees applied once your provider has sent the payment. These could be by way of fee deductions made to the principal payment amount as it is processed by intermediary or beneficiary banks in the payment chain. Although the amount deducted is out of their direct control, certain transfer services protect against these fee deductions or they execute the payment directly in the beneficiary’s country thus avoiding these lifting fees which can occur across international payment networks.
Tips for finding the cheapest way to send money abroad
- Always compare money transfer providers and make sure you know the differences between rates and fees in order to choose the best deal for you
- Don’t assume that one particular provider is always the most favourable. Certain providers are either more or less competitive when considering the currency of the payment, amount being transferred, and the method of settlement.
- Avoid transferring small amounts of money too frequently. Transferring large amounts less frequently will save you money on fees that are charged per transaction.
- If you are not in a hurry, keep an eye on fluctuating foreign exchange rates and time your money transfer when rates are in your favour.
- Be mindful and pay attention to the total cost. The fees may be low but the exchange rate may be unfavourable or vise versa. Watch out for additional fees that may be incurred whilst your payment is in transit and remember that some money transfer providers will protect against these 'lifting fees’.
Moving money costs money. There is no one best bank or money transfer provider for transferring money internationally. This is because exchange rates are in a constant state of fluctuation and depending on your requirements one provider may suit you over another. There are many factors to consider when transferring or moving money abroad. You should consider the amount you are transferring, the frequency of such transfers, the need for urgency, the fees and the exchange rates offer by the money transfer provider. Always compare providers and get all of the facts before you transfer your money abroad.
Xompare.com is a money transfer comparison website, using real-time data feeds, to enable consumers and businesses to save money and time by choosing the best provider to suit their needs.