The first thing you need to know about money transfers is that there is no such thing as a free lunch. You will need to pay for your transfer in some way – after all, banks and money transfer companies need to turn a profit in order to keep their services going. It’s the way that these profits are made that counts and with a little inside knowledge you can be sure you are not handing over too much of your cash in charges.
Don’t Be Fooled By 0% Offers Or Free Transfer Deals
There are many money transfer companies offering 0% transfer deals and these are best avoided if you can help it. These companies will factor in a poor exchange rate and it could cost you dearly. Treat these signs as marketing gimmicks. It’s the classic bait and switch.
Instead, shop around for a good non-bank money transfer specialist who can give you an exchange rate that is as close to the interbank rate as possible. This is the rate that fluctuates every day on the currency markets, and should be viewed as the ‘real’ rate of exchange.
An FCA authorized money transfer specialist will give you the best rates, professional guidance and transparent charges. They will also be able to give you access to currency contracts such as forward contracts that save you even more money over time.
Opt For A Forward Contract And Lock In Your Exchange Rate
Did you know that you can lock in your exchange rate for a fixed period of up to 12 months in advance? This gives you total peace of mind that your regular payments and other money transfers will always stay in budget. That’s great if you are using a currency that fluctuates wildly each week. You can usually set your exchange rate for up to 12 months, requiring only a 10% deposit
Save Money On Your Next Overseas Money Transfer
Saving money is important when you make any financial transaction and sadly currency transfers are one of the hardest hit transactions when it comes to opaque charges. Foreign exchange is commonly known as one of the last areas of financial services where the customer doesn’t know what it’s costing their bottom line. Exchange rates are inherently designed to confuse.
The good news is that trading with an FCA authorized money transfer specialist can help you to save hundreds and often thousands on your money transfer deal. In fact, you could save up to 5% on each transactions versus the high street bank. In real money terms, that’s savings of up to £5,000 if you were to transfer £100,000. Banks set their exchange rates only once or twice per day whereas currency brokers call into the live markets, accessing wholesale exchange rates.
source: everythingfinanceblog.com
