Every day, countless people make international money transfers. Is it easy to send money to someone in another country? Well, that depends. If you’re not careful enough, it can cost you a lot more money, since most people don’t realize the hidden fees. Let’s find out more about how to make the process safe and profitable.
To send money abroad, you will have to bear two types of costs: the cost of currency conversion and the cost of transferring the money to the desired country. The service provider can be a foreign exchange broker, a bank or a money transfer company. The thing is that they do not convert one currency to another based on the interbank rate. Instead, they trade at a lower rate and make a good amount of profit. Here are some tips that can help you get through the process efficiently.
forex brokers
Acting as intermediaries, forex brokers deal with many banks and offer the best exchange rates. While their main function is to convert currencies, they can also help you send money abroad for a reasonable fee.
While this option is cost-effective, especially if you want to transfer more than $5,000, the process can take longer to complete. Choose this option if you don’t have to send your funds abroad urgently.
Commercial banks
Banks are the most common means of international money transfers around the world. However, the fact is that banks are notorious for charging hidden fees for money transfers, and the fees will continue to rise as the amount of money that needs to be transferred increases. But the advantage of using a bank to do this job is that banks are considered the safest way to transfer money abroad. Therefore, if you plan to make the transfer through a bank, make sure you choose a bank that charges a minimum amount for transfers.
money transfer providers
If you want to send less than $5,000 to someone in another country, money transfer providers are probably your best option. They are the best in terms of transfer cost. They usually offer bank to bank transfers. You can also find some providers that allow you to receive cash at cash pickup locations.
online money transfer
These service providers allow you to send money abroad for a minimal fee. They usually charge only $1 extra for the transfer. Some providers do not even charge this fee.
These providers are regulated by the financial authorities of the same country in which they operate. They use state-of-the-art financial technology to send and receive funds. So, you can count on them with your eyes closed.
With online money transfer, you don’t need to visit a financial office. All you need to make the transfer is a computer and a fast Internet connection.
So before choosing any of the three money transfer services mentioned, do your homework and compare them with each other. You can go with the one that offers best services at the lowest cost.