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Life moves fast. One day you’re wondering which bar of chocolate to spend your pocket money on, the next you’re purchasing a car or property abroad and you need international money transfer services. Being good with money is a skill in this case. If you’ve never transferred money overseas you probably won’t yet appreciate the intricacies of carrying out such a transaction. And by intricacies, we mean fees and charges. Learning to successfully transfer your money for as low a charge as possible isn’t intuitive. You’re going to need a few hints and tips – getting the best deal on your international money transfer is simple enough if you know where to look (otherwise, your lump sum may be significantly affected when fees and charges are applied).
‘Commission-free’ & hidden charges
This is a common tactic employed by many providers of international money transfer services, whereby commission-free claims are offered to potential customers. The problem is that services are not entirely commission-free, because exchange rates are often altered to help the provider absorb the loss. This means that you are effectively paying commission in the form of receiving less currency in the exchange. See these 6 best money transfer services to send money internationally.
The best advice is to view daily exchange rates and compare services to make sure you receive as close to the exchange rate as possible when all non-hidden fees are applied.
Choose your provider based on how much money you’re sending
International money transfer service providers differ from banks in a few very critical ways. First, banks will require a much more in-depth setup before the transaction can take place, involving the need to create a foreign bank transfers account. Other service providers typically only deal with reference numbers, which may cost more to buy into but will usually mean that your exchange can take place much faster. Where banks offer a similarly expedited service in competition with these providers, a charge may be added. This means that depending on time restrictions on how fast you would like your international money transfer to take place, and depending on how much you want to spend in terms of service fees, your best option may be obvious. In the most simple terms, banks offering international money transfer services may cost slightly more, but will also typically provide a better exchange rate at a slower service. In general stick to the rule of using alternative service providers (i.e. not banks) for larger sums.