You have to indulge in an international money transfer if you want to send money to another country. This is irrespective of the reason behind your sending money and the recipient of that amount.
If you want to know how to send money abroad at a low cost while ensuring you get the best deal when you transact, keep reading.
Before you look for a company, you need to know exactly what you require. To list that, ask yourself questions like:
1) How much do you have to send? Is it nominal or a large amount? For instance, £5000 pounds worth of currency is considered a large amount.
2) Do you have enough knowledge about exchange rates? You should know how they change and affect your international transaction.
3) Do you have the correct banking details of the recipient's bank account? Such as account number, owner's name, etc.
Once you have listed down answers to these questions, you can then start searching for an institution. You can check whether the company of your choice provides the required assistance regarding all your needs.
There are two main options you can choose from when sending funds internationally. They are:
1) Through a bank.
2) Using a currency specialist's assistance.
Sending money through a bank is not ideal as it does not provide you with many benefits. On the contrary, opting for a currency specialist aids your transaction and offers a great advantage. The following table is a side-by-side comparison of the potential pros and cons of both a banking institution and a currency specialist.
|Bank||When you send money abroad through a bank, it offers you superior safety. Moreover, it is also significantly convenient to avail.||Exchange rates can be as poor as 4% when compared to currency specialists. Banks also hide their fee within the rate of exchange. Furthermore, it offers no guidance on currency exchange rates, making the systems clunky and inefficient.|
Some provide transparent pricing models, offering visible interbank exchange rate online before booking with no additional hidden fees.
You get a dedicated industry professional who knows every minute detail about the foreign exchange market. An expert will also provide on-hand guidance when you are ready. Moreover, some offer online platforms to transfer money quickly and have the phone in dealing desks.
They are usually registered or authorised with the Financial Conduct Authority, which mandates them to safeguard client money.
Though their rates are lower compared to banks, some specialists are not completely transparent and offer inconsistent spreads.
This transaction option is only useful if you have access to the interbank exchange rate. Because then you can to work out your calculations before booking. Without access and a fully transparent fee structure, a specialist will not provide you with many benefits.
Compare both types of institutions and see which one is actually offering you some sort of upper hand in the transaction. Once you are done selecting an option, you can easily send money abroad by following the steps stated below:
This is the process of confirming your identity. First, the institution will ask you to provide some personal information about yourself and details about the money transfer. Then they will conduct an identity check to verify the documents you have provided. This is a mandatory exercise for all international money transfer companies. It is done to prevent the risk of money laundering, and they are done according to the strict anti-money laundering guidelines.
You should receive an online response in minutes of entering your information unless you register over the phone.
The reason you were asked to list the amount you will be sending was for this very purpose. After registration, you will need to fix an exchange rate with your bank or currency specialist based on the amount and currency you will be sending. Understand the currency that will be sent to the beneficiary account is the currency that you are buying. On the other hand, the currency that is going from the account you are sending from is the currency that you are selling.
For example, if you want to send euros to pounds, you will be sending euros to a euro account abroad. And then you will be buying pounds to pay for the transfer. Therefore the currency exchange rate that you need to look at is EUR to GBP or EUR/GBP.
You can then find this currency pair from the online platform provided by the currency specialist or obtain a quote from your dedicated account manager over a phone call. Transparent currency providers will provide you access to the interbank exchange rate before booking your exchange rate online with no hidden fees. Once the exchange rate is booked, you are then either required to pay the selling currency amount. You can pay it directly into the client account of the currency specialist/bank, or you can use a debit card to make that payment.
After that, the currency specialist or bank will send over a contract confirmation to you, which will show the deal details. You will then need to provide your beneficiary's account details for where you are sending the money to.
After providing all the details, you just need to sit back and relax, and the institution in concern will take care of the rest. Then, the said bank or currency specialist will send the money abroad to the account you have specified. You can then contact your beneficiary to know if they have received the amount on not.
In theory, you indeed can send money abroad through a bank transfer. But if you put it in a practical scenario, it is probably the worst way of international money transfer.
For example, let's consider that you would like to send a fixed amount of Pounds to a Euro account abroad. The bank is under no regulation to quote you a rate. Moreover, if you conduct this transfer via online banking, they will simply apply the exchange rate that they see fit at the time and process the transfer.
This is the easiest way to lose money, and we have come across clients who have lost significant amounts by changing money in this manner. Hence, we recommend you avoid this method at all costs.
Many companies claim they offer a free service to send money. However, sending money abroad can never be for free, and it will always cost you money. So, the companies making such claims are either fraudulent or offering a promotion that is a loss leader to win business. Such institutions can be operating with huge losses, and it is very likely that their business would fail. And in some cases, they can also start to charge start later on.
The cheapest way in the market is using transparent online currency specialists. It is because they offer you access to review the interbank exchange rate in advance of booking online. Moreover, they charge no hidden fees, and since it is online, you do not even need to waste time travelling.
In order to answer this question, you first need to understand the concept of currency exchange rates.
To save the maximum amount of money compared to the banks, use a currency specialist when sending money abroad. This is especially crucial if you are sending a large amount of money.
Currency exchange rates can move about 1% or more within a day. So, make sure your currency specialist has a dedicated account manager that can guide you with the latest economic data releases. They should also view which impacts your currency pair to help you make an informed decision before you go forward with the transaction.
Furthermore, optimising the timing of when you send money abroad can also save you money. And a currency specialist can help you with this.
Just keep in mind that many currency specialists hide their fees within the rate of exchange. So, the quotes you have obtained from various specialists can get changed at the point of the transaction. This is obviously not a good practice and will affect your transaction significantly.
Hence, to get the best exchange rates, go for the currency specialist that provides you with access to review the live interbank exchange rate before you even book their service. Also, as discussed multiple times, the specialist should not charge any hidden fee. This way, you can calculate the margin taken. So, when you are quoted for the second, you can review again to ensure the margin is fair.
When sending money, you will need to provide the reason for your transaction. Also, make sure that you have the relevant banking details of your beneficiary's bank account.
The money will be received in the currency account of the recipient that you had provided when you decided to send money abroad.
There isn't an easy way to track the payment once it has been sent. However, if you have selected the currency specialist after doing the required homework, the payment will arrive at the stated time. Should there be any issues, make sure you have someone at the company that you can call to chase up the whereabouts of the payment. They will then be able to trace the payment via the bank payment network.
Once the payment has been sent, certain systems such as the SWIFT payments network provide confirmation. First, this is sent to the currency payments specialist, stating that the funds have been sent. Following that, the currency payment specialist will provide you with email confirmation that the payment has been sent.
Yes, there are several countries that are sanctioned where money cannot be sent to. Therefore, always enquire with your bank or currency specialist to provide you with this information before you decide to send money. This way, you can avoid all the possible issues that you can face while sending money internationally.
The Currency Club is the UK leader in transparent foreign exchange. We are known for supplying foreign currencies and allowing our private client members as well as corporates to send money abroad. The company offers that at the interbank exchange rate that too with no hidden fees.
Our specialists have been aiding currency transfer issues for over 40 years and have helped more than 400 thousand clients. The Currency Club is capable of sending and receiving payments in over 100 different currencies. This means we most probably cover the currency you want to exchange as well.
So, why fluster over a simple international money transfer when you have us at your service? Hire us as your currency specialists and send money abroad without any difficulty.
If you are a private individual, click here to obtain a quote.. Our specialist will then conduct a thorough discussion with you regarding our services.
And if you are a business looking to save money on your international payments or would like assistance with hedging your currency requirements? In that case, call us today on 0207 723 7000 or send us a message below.