There can be multiple reasons for which you would require to send money abroad. Be it to pay for an item or to buy a property; there are plenty of financial institutions out there looking to get in on the action. These institutions will help you send your money whilst making a healthy cut of profit along the way for you.
However, not every institution practice ethical transactions and can charge you a hefty amount. Hence, you need to actively find an company that will assist you to send money abroad cheaply .
So, here is a step-wise process that you can follow to transfer money abroad at the lowest possible cost.
a) How much currency do you need to send?
b) Which country are you sending the money to?
c) How does the recipient wish to receive the money? (Directly into their bank account or in cash?)
d) Do you have the correct bank details of the recipient?
e) How regularly will you send money?
f) How quickly should it reach the recipient?
You need to find the answers to these to determine the ideal money transferring method. Carefully consider the amount you wish to send, since transaction of a significantly high amount requires extra attention to ensure you are not wasting your money.
So, once you have the answers to these questions in hand, assess all the options available in the market. See which establishments provide services that will best suit your requirement. Also, this guide will help you run through the pros and cons of each service out there.
The most common money transfer options you will come across in the market are:
1) Using your bank or building society
2) High street cash service to send money
3) Online FX Specialists and Currency Brokers
In general, if you are to use a bank or building society to send money abroad, the greatest benefit is that they are safe. However, sending money internationally via this method can be a costly affair.
You can also choose to use a high street service, such as western union or MoneyGram. Both of which allow cash collection for an international money transfer. This lets the recipient collect cash in the country of their choice. But you need to understand that you cannot send money overseas at low cost with their help.
Finally, there are several online currency specialists and brokers available in the market. If you select correctly, this can be much cheaper compared to the other two. Additionally they use practices to safeguard your money under tight regulation ensuring your funds are held separately from company assets. Yet, it is still important to understand their operations to ensure you get the best deal on sending money abroad.
An exchange rate is a quote of a price of one currency against another for the purpose of conversion.
Historically and traditionally, the banks followed by FX brokers have always quoted their exchange rates based on the live interbank exchange rate for a currency pair. You can easily find the live interbank exchange rate for most currency pairs from websites, such as XE and Oanda. The Currency Club currency converter also shows the live interbank price at any time.
What is important to understand is that all traditional FX brokers price their exchange rates for currency transfers based on the live interbank price. In simple terms, the live interbank price is the price at which banks transfer money between each other. Unfortunately, this is usually an exchange rate that is not accessible to consumers.
They may even go as far as claiming that they quote no extra fees or no commission charged when sending money. However, their profits are encompassed within the exchange rate that is being offered to you. This practice is commonly known as the spread. In addition, FX brokers can undercut the banks because of the volumes they trade. Even though they do not receive the interbank exchange rate, they can most definitely cut the rate you get from the bank due to significant economies of scale.
For instance, suppose you are looking to send a fixed amount of 40,000 Euros to France. If you contact your bank, they will provide you with an exchange rate.
On making the phone call they give you a rate of exchange of £1 = €1.1200 to send 40,000 Euros.
Therefore, you expect that this would cost you £35,714.29 pounds (this is simply, 40,000 divided by the rate of exchange)
In the above example, let's say the interbank exchange rate was actually £1 = €1.17. So the cost to the bank for the 40,000 Euros would likely be £34,188.03.
The hidden fee within the transaction is as much as £1526! Or around 4% of the original amount. That's a lot of money wasted just to send money abroad! We refer to this percentage as the spread or exchange rate mark up.
The Currency Club, however, provides a transparent option to help you send money abroad cheaply. We provide our online users with access to the interbank exchange rate at the point of making the transaction. Therefore you can transparently see where the interbank market is, compared to the rate of exchange you are achieving before you confirm. Furthermore, you can refer directly to the currency converter on our home page for more information.
Now that you understand the exchange rate and how different money transfer options treat it, the next step is deciding your provider. This decision significantly depends on what your preference is. For instance, specialist currency firms exist because they quote better rates than the banks. It is especially true when one wants to send money internationally at low cost. BUT! There is a "quote" mentioned for a reason!
Some currency brokers are notorious for quoting an exceptionally good exchange rate to send money abroad. However, once the account has been opened, they offer a terrible rate from the on-going interbank exchange rate.
So, if you decide to use a currency specialist, make sure that they are proactive with your needs. They should especially put more effort if you are making a large transfer. Furthermore, ensure that they provide you with a level of transparency, much like The Currency Club.
Continuing with the effort of looking for a transparent and proactive specialist, you must understand what that exactly means. So, when you decide to go for a currency broker, make sure that they offer you access to the live interbank exchange rate. Moreover, once you book their currency exchange services, they should clearly if there are going to be any additional fees that they are going to charge.
You need to understand that proactivity is a crucial deciding factor when you want to send money abroad. Make sure that if you are looking to make a large transfer, you have been assigned with a dedicated dealer. He or she will reach out to you actively and inform you of the current market movements. As in the present climate, exchange rates are easily moving more than 1% within a day. You can achieve a great deal of savings by availing assistance from a broker that has a proactive approach when sending your money abroad.
Though international fund transfers might seem considerably risk-prone, they are rather safe if you are availing assistance from a banking institution. However, if you do not want to pay the high exchange rates and hidden fees they charge, the risk might increase.
Hence, to send money abroad cheaply, you need to ensure that the institution you choose is safe. Do your homework on it; check if the company or currency specialist is regulated by the FCA (the Financial Conduct Authority). Openly ask the company if they have a valid money service business license to offer the services they promise.
You can further verify their claims by looking up their company's name on the money services business register from HMRC and FCA's official website. In addition, the Payment Service Directives mandates every FCA authorised company to follow their strict guidelines and safeguard their client's money. So, by selecting a company with all the above mentioned certifications, you can transfer money abroad at almost zero risks.
While you can definitely use the above mentioned steps to find the ideal broker for your requirement, we are here to ease your hassle. If you are searching for "send money abroad cheapest way", The Currency Club is your ideal answer.
Should you still feel sceptical about our assistance, here are few key benefits that you will get from us:
As we have already stated, we maintain complete transparency with our clients, and we achieve that by openly communicating the exchange rates we charge. Moreover, we have kept these rates extremely reasonable for your help. At Currency Club, you will find low cost best exchange rates when sending money abroad. Also, we provide you the access to the interbank exchange rate prior to booking online for you to compare.
Our experts are extremely efficient and actively ensure you are able to send money internationally hassle-free. Besides, we have designed a quick and convenient online sign-up procedure that anyone can follow.
We take convenience to another level by offering a fully automated online platform that will assist you throughout the process. With its help, you can transfer funds in a more streamlined manner and effortlessly save both your time and money on these transactions.
As the market is extremely dynamic, we do not stick to a particular deal for an extended period. Rather we set our deals as per the industry demand. Hence, we regularly compare ourselves against providers and banks out there. This way, we ensure the best deal every time, so that you can indeed send money abroad cheaply.
Transferring funds to another country is already a big hassle. But it becomes even more tedious if the amount is significantly large. For such transactions, you will have to keep an eye on the foreign exchange market at all times. However, as a working individual, it might not be feasible for you to do so. Hence, under such circumstances, we assign a specific dealer for you, taking care of all the required procedures.
Registered with the FCA under the Payment Services Directive, The Currency Club is a well-known trading name of Sterling Consortium Ltd. The company also hold a valid Money Services Business License with the HMPC.
We are a team of specialist currency providers, offering transparent pricing to our clients online. We do that with the aim of providing streamlined, safe and quick money transfer assistance to our customers.
The Currency Club is providing foreign currency solutions for over 40 years now. Over these years we have offered services for about 1 billion pounds and satisfied more than 400 thousand customers. Moreover, we hold the capability of exchanging funds in over 100 different types of currencies. So, there is hardly any possibility that we do not hold the capability of exchanging the currency you have.
We are not fee driven, and that is why we never charge any hidden fee from our customers. So you can rest assured and rely on our customers to get some of the finest services in the currency market. With us, you actually get to send money abroad cheaply, unlike most institutions in the industry.
So, why worry about sending funds internationally? Simply click here to send money abroad with The Currency Club and save your effort, time and money. To know more about our exchange rates and procedure, feel free to call our dedicated dealing team on 0203 994 9724.