Do you or your business send money abroad? Daniel Abrahams, CEO of comparison platform CurrencyTransfer.com, identifies some of the common pitfalls and explains how to save money
Exchange rate fluctuations can make the difference between saving or losing tens of thousands of pounds, dollar or euros each year.
But it doesn’t have to be that way. Here are some things you should know and my top tips for sending money abroad…
(1) There are better alternatives to the banks
The average bank can apply hidden fees of up to 5% of the value of your transfer. On a £50,000 transfer into Euros, that can unknowingly cost you up to £2,500 in poor exchange rates. Make sure you shop around.
(2) Always compare at least two prices on every transfer
The more live and accurate quotes you get, the better the deal.
(3) Make sure your currency broker is FCA-regulated
When using a cheaper, non-bank option, make sure the supplier is FCA regulated and operates segregated client accounts
(4) Consider a forward contract on large transfers
Forward contracts let you lock in today’s exchange rate for up to 12 months in advance. It’s a smart way of hedging against currency risk and used by importers, exporters and overseas property buyers.
(5) Ignore 0% commission
Zero % commission is simply a marketing gimmick. There is no such thing as fee free transfers. Add up ALL transfer fees, charges and hidden FX markups when calculating the true cost of moving money internationally.
To sign up for free, live quotes from a curated panel of non-bank foreign exchange suppliers, click here.
CurrencyTransfer.com is the world’s fastest-growing online marketplace and can help you save time and money on international transfers.
It’s 100% free to use and compares live quotes from FCA-approved payment partners.
Remember, whether you’re a business, expat or overseas property owner, it pays to shop around.