International money transfers can be an integral part of day-to-day life and business operations for millions of people. Unfortunately, this industry has been subject to rampant overpricing by big banks and financial institutions.
Historically, banks have monopolized this market for their own ends. Clients blithely trust banks, due to the fact that they are established financial players in the global markets. But should they?
The fees, commissions and hidden charges levied by banks do a disservice to international money transfers and clients. It’s less about the wire fees than it is about the exchange rates charged by banks.
Fortunately, international money transfers have a new lease on life through credible fintech companies. It is now entirely possible to save money by transferring money abroad for cheap by using reputable companies.
When you’re thinking of transferring money abroad, there are various location-based money transfer companies that you can use to facilitate these transactions.
Consider the T&C of Money Transfer Companies
Several big-name entities now exist, including OFX, World First, Money Corp, and Currencies Direct.
As a client in the United Kingdom, you can use companies like World First to send a minimum amount of £1000 and transfer it with no fees and the best rate guaranteed from the United Kingdom.
World First accommodates 150+ currencies and provides exemplary service and cost savings for clients.
For customers in Europe, Moneycorp is the preferred option. This established organisation has been involved in international money transfers since 1970. The online money transfer platform is ideal for sending minimum transfers of €250 +, and offices are located throughout France, Spain and Ireland.
For US and Canadian transfers, World First once again hogs the limelight. The minimum transfer amount is $1,000, and there are no fees if you send a minimum of $10,000. World First has also received plaudits from international money transfer organisations as being one of the best ranked forex providers since 2014.
Even in Asia, World First rules the roost. A minimum transfer amount of SGD 1,000 or HK$10,000 is needed, but no fees are levied from Hong Kong or Singapore, and the signup process is quick and easy.
Going Local Can Save a Fortune in International Money Transfers
It is beneficial to choose a local office to handle international money transfers.
When these international money transfer companies have offices in sender and receiver countries, they can conduct the transactions at minimal cost to the client. Funds are wired domestically and received domestically.
Consider the cost comparisons with banks and international money transfer companies for a moment. A bank typically has fixed fees ranging from $25/$50 in the US, €15/€30 in Europe, and £15/£30 in the UK.
With international money transfer companies listed at money transfer comparison there are no fixed fees. Additionally, there are absolutely no commissions with these companies, while banks can charge anywhere from 0.1% through 2% commissions.
But the big factor and the one which determines how much of your funds are going to be eaten up in the currency exchange is the spread.
Banks have a spread that ranges between 1.5% on popular pairs to 5% in less popular pairs. However, international money transfer companies have spreads that are much closer to the actual exchange rate.
Since these companies are involved in wholesale exchange of currency, they can offer much tighter spreads and better rates to clients.
Your cost savings can amount to thousands of dollars/euros/pounds sterling per transaction, and that equates to a king’s ransom in the long run.