Money Transfer Options
Sending money abroad has never been easier on today´s international markets. With all the information you can find on the Internet, you can learn by yourself about the money transfer options available or, if you don´t have the time and want to be sure you´ve made the right decision, you can use a financial expert, such as FXcompared.com, who can help you search and compare money transfer companies and find the best low-cost solution for your needs. However, before asking anyone about the best ways to send money, you have to know what to look for in the first place.
So, how can you send money overseas?
Well, there is the traditional path: using your bank services. A bank-to-bank transfer offers additional security and it requires the receiver to have a bank account. The downside is you have to pay fees (usually quite expensive) and it may take longer for the money to get to the destination.
Secure online transfer services are another option and they require a bank account or a credit card and Internet access for both the sender and the receiver. The sender will have to register online and pay a small fee.
Prepaid cards operate just like credit/debit cards and can be used when small amounts of foreign currency are involved. Once the cardholder loads the funds, you can only spend what you have on the card. So it comes with a bonus: it keeps you in check!
Money Transfer Operators (aka MTOs)
Many of these are well known and you´ve probably seen their logos in your area, at the post office, in the small shops and even in your bank branch. MoneyGram and Western Union are MTOs, companies specialized in money transfer, that operate through agents and through which you can send money rapidly worldwide. To use their services, you just have to fill in a form, provide your identity document and, of course, pay a fee. That´s it!
Peer-to-Peer Money Transfer
This is an innovation in the international money transfer world, where the sender and the receiver of the different currencies trade directly with each other at close to the international market rate. You only pay a small fee for using the platforms, but there are no bank fees. Examples of companies that offer peer-to-peer transfer are Transferwise and CurrencyFair.
We´ve talked about options to trade small to medium amounts of money. But what if you want to start a business abroad and have to send the correspondent capital? What if you want to buy a property overseas?
The best way to do this is through foreign exchange brokers, also known as FX brokers. Specialized in international money transfer, FX brokers are recommended for transferring medium to large amounts of money. They can provide you a personalized solution with benefits like fixed exchange rates for a specified period of time. You will have to open an account with a FX broker and fund it from your bank account or credit card (depending on the amount to be transferred). These specialized companies do not only offer many different money transfer option, but also usually charge no fee at all and offer the most competitive exchange rates.
You have many choices to transfer money overseas and these are just a few of them. When it comes to money, we believe in education and, when it´s about your money, you have to understand your options. We always recommend using an expert, but knowing the available options and the differences between them is the first step in making an educated choice.