Exchange rate, currency exchange, and money transfer are all scary-sounding terms, but they’re really simply a game of knowing the rules.
Some people who have never made an overseas money transfer may be intimidated by the prospect of doing so. Just as every lock has a key, every seemingly insurmountable problem has at least two solutions. Here’s how to streamline your next international money transfer, avoid hidden fees and save money.
1. Compare the different currencies
The exchange rate should be checked before initiating international money transfers. Find out how much you have to transfer by researching the currencies involved and the value difference between them.
You should never choose an international money transfer provider without first researching the market. It will only take a few minutes of your time and will help you find the most trustworthy service with the best possible exchange rate and the lowest possible transfer fees.
2. Check for possible discounts
If this is your first time conducting international money transfers, keep an eye out for special deals that some services may be offering to first-time customers. Keep an eye out for recurring customer discounts if you are someone who makes frequent international money transfers.
3. Check conversion fees and other hidden costs
International money transfer providers regularly take advantage of the slight differences between mid-market rates and the rates applied to the transaction.
To rephrase, they make a profit by reselling the money at a greater rate than they acquired it. Be wary of a service provider with a large price gap between their “buy” and “sell” prices.
It all depends on what kind of service you want and whether or not you’ll have to pay more for it. Credit card money transfers, for instance, may incur more fees than debit card or bank transfer money transfers. There could be intermediary bank costs if you use a bank to send money abroad.
A fee is sometimes charged by financial institutions for receiving overseas transactions. Never forget to investigate such occurrences further.
4. Look at the overall cost
Keep in mind the full price and be as detailed as possible. It’s possible that the fees involved would be high but the exchange rate would be low, or vice versa.
It may be reasonable to charge more if the current exchange rate is favourable. Determine how much money the recipient will get before you complete the transaction.
5. Try not to make multiple transfers
Do one large transfer instead of several smaller ones. This will lessen the financial burden brought on by repeated financial dealings.
6. Use online money transfer services
Use a money transfer service. They provide cheaper rates than banks and foreign exchange brokers. The time you save and the ease of use of an online service cannot be overstated.
Keep in mind that when sending money internationally, even little variations in exchange rates and taxes can have a major impact on the final amount. To get the most out of your money transfers and save costs as much as possible, remember the aforementioned advice.