How to efficiently sending money abroad
- January 11, 2020
- Will Turner
Daily, hundreds of thousands of money transfers are made across countries. This could only be due to the fact there are now a lot of easy ways to send money from one country to the other. However, this does not mean you will not be at risk of being charged hidden fees that could make it cost more than it should. This article will discuss how to efficiently transfer money from one country to the other in a way that will be cost-effective.
To send money to other countries, there are two major types of charges that you will have to cover. The first is the amount that the money transfer services wish to charge you, which could be dependent on the country you intend to send the money to. The second type of charge is the amount you will be losing to the currency conversion process. Money transfer countries take advantage of the different currencies operated by the 2 countries to use a lower exchange rate so that they make some nice profit for the conversion process. For instance, if you are sending from currency A to currency B that has an official exchange rate of 1:100, the money transfer company would not use this official rate of 1:100, but probably 1:95. This way, apart from their fixed charge, they would have made the equivalent of 5 currency B for each currency A that you are sending. Here are some tips that could help you send money abroad efficiently.
Use of Online Money
One of the best ways to transfer money to other countries is through online money transfer service providers. They would usually charge you a little fee that will not be more than 1 USD to send the money. In some cases, they might not charge you at all for the transfer. However, different providers use different exchange rates to send money to other countries. Thus, you might want to check for the providers that use the best conversion rates. An example is Transferwise, but it is still important to read about Transferwise before you use their services. A major advantage of this option is that there will be no need to visit the office of the financial institution. They are also reliable since the financial authority in the country they operate regulates them.
You could use the services of money providers to send below 5000 USD to a recipient in a different country. Their transfer cost is often minimal and they mostly provide transfers from one bank to the other. Some of them can serve as a point where you can receive foreign transfers as well.
A lot of people use banks to carry out money transfers. However, they are often the most expensive as they have a reputation of charging some hidden fees when you transfer money across countries. In most cases, the higher the amount you are sending, the higher the hidden fees. However, banks are reputed to be a very safe way of sending money abroad.