The benefits of using a foreign currency broker
International money transfers often come with a lot of hidden fees. Find out how to save when transferring money abroad by using a foreign currency broker for your expat foreign currency transfers.
Making an international money transfer can often be an expensive endeavour, with your money being slowly chipped away during the exchange by a poor rate and various fees. But by making use of a reputable foreign currency broker, you can make the most of your international money transfer.
It doesn’t matter if you are making a one-off foreign currency transfer or if you make them regularly, you could potentially save a lot of money by taken advantage of the specialised services offered by a leading currency broker. International currency broker TorFX discusses the benefits of using a currency broker when making your foreign currency transfer.
What makes a foreign currency broker a better bet to a bank?
Maybe you’re thinking about emigrating or are planning to buy a little holiday retreat abroad. In either case, you’re likely to be transferring a lot of money, and choosing a foreign currency broker instead of a high-street bank could net you savings of hundreds or even thousands of pounds.
Currency brokers can often offer you more competitive foreign exchange rates than your bank, making sure your money retains as much of its value as possible as it’s transferred into your desired currency. By using a currency broker you can also avoid the transfer fees levied on your transfers by most banks.
This transfer fee is added to each trade, so if you are making smaller regular international money transfers (like moving your monthly pension payments abroad) you may find using a bank becomes cost prohibitive.
Avoiding these fees can result in serious savings over the course of the year.
Take advantage of extra services
The current market doubts over the uncertainty of ‘Brexit’ have caused a lot of volatility in the value of the pound and have caused it to hit multi-year lows against many of its peers. This can put increasing pressure on large international money transfers as a decrease in foreign exchange rates by just a few pennies can cost you thousands.
Thankfully foreign currency brokers can also offer you specialist services to help you when it comes to making an international money transfer – like a forward contract. A forward contract is particularly useful when planning a future transfer as it allows you to fix a foreign exchange rate for up to two years ahead.
For example, if you were looking to buy property abroad this would allow you to freeze the current foreign exchange rate, so during the lengthy completion process you can ensure that your purchase doesn’t end up costing significantly more just because the foreign exchange rate shifted by a couple of percent in the meantime.
Alternatively you can set up a limit order. This allows you to set desired foreign exchange rates for your international money transfers, and will be automatically carried out on the market reaching that point, saving you from having to watch the markets yourself or missing out on the foreign currency transfer you want because the foreign exchange rate drops again before you can move on it.
When using a bank to transfer money overseas, you will generally only be able to trade at the current foreign exchange rate for the day in question (also known as a spot transfer), narrowing your chances of getting the best possible deal for your situation.
With the pound forecast to plunge ever lower ahead of official ‘Brexit’ negotiations next year, taking advantage of the services offered by a foreign currency broker can help to make sure your 2017 starts off on the best foot in terms of finance.
Foreign currency brokers usually have specialists to guide you regarding current currency trends and what significant changes you may expect. This will help you get the most out of your money and make sure your international money transfers are as pain-free as possible.
Some foreign currency brokers also offer clients the opportunity to open accounts for free, plan for the payment of recurring transactions and make foreign currency transfers online or through mobile apps.
In short, there are lots of benefits to using a foreign currency broker – including saving time, money and stress – so get in touch with a reputable foreign currency broker like TorFX and find out how they can help.
TorFX / Expatica
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