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.