Top tips for moving money overseas
You may need to move money abroad for any number of reasons, such as funding an emigration, purchasing a foreign property, transferring wages or a pension, meeting international school fees or repatriating.
The most popular methods of conducting an international money transfer are using a bank or using a currency broker. Many people assume that using a bank is the easiest option, but the services offered by currency brokers can actually be both more convenient and more cost-effective. These are our top tips for making sure you get the best return when moving money overseas.
Do your research
The exchange rate you’re able to secure can make a massive difference to how much money you receive when moving funds abroad. Banks rarely offer the most competitive exchange rate available, with some even fixing a rate in the morning and leaving it unchanged in spite of any market movements which may have occurred. Currency brokers, on the other hand, work on smaller margins and can usually offer you a rate which beats the banks by as much as three percent. A stronger rate could give you thousands more euros for your pounds (or euros for dollars), so it’s well worth doing a little research and getting quotes from a couple of providers.
Watch out for hidden fees
Something else to consider is that some currency providers levy transfer fees and commission costs that could be avoided. If you’ve got regular foreign exchange requirements, like transferring a pension abroad, being charged GBP 40 a month to make the transaction can really add up. Currency brokers like TorFX don’t charge transfer fees or commission costs, so you could save hundreds over the course of the year.
Benefit from expert guidance
The currency market is highly volatile and exchange rates can fluctuate by as much as 10 percent within days in response to a number of social, economic, political and even environmental factors. This volatility makes picking the best time to trade tricky – so a bit of expert guidance can really come in handy. Some currency brokers assign their clients dedicated account managers – currency experts with an in-depth knowledge of the market and the ability to forecast potential exchange rate trends. With their support and regular updates, you can stay informed and move your money at the most lucrative time.
Take advantage of specialist services
Another key benefit of using a currency broker rather than a bank when moving money abroad is that they tend to offer a range of specialist services that can be tailored to suit your requirements, from fixing a favourable exchange rate up to two years in advance of a trade to setting up an automatic regular overseas payments account. All of these services are designed to make managing your international money transfers easier and more cost-effective, so looking into this area can really pay off.
If you’ve got a foreign currency transfer coming up, the top tip we can offer is to take the time to explore the options available to you. So weigh up the pros and cons of a bank versus a broker, get quotes and see how much money you could save!
Contributed by TorFX
TorFX is a specialist currency broker that offers far better exchange rates than you are likely to receive from a high street bank.