There are a lot of ways to send money overseas and some methods are definitely better than others. We have put together a few tips that you should always keep in mind when sending money internationally in order to save money and get your money to its destination quickly and efficiently.
Using your personal bank to send money abroad, is a good option you should consider first. Banks typically charge low fees for sending money abroad and they also may have low margins on exchange rates on top of that. If you are looking for the most economical way to send money abroad, using your bank a good option as bank transfers are very secure and fast so if you are wary of other money transfer companies, it may be worth the peace of mind to you.
#2 Stay On Top of the Rates
Exchange rates can fluctuate quite frequently and they may even change from one day to the next. Keep your eye on the exchange rates before you send money abroad, ensuring that you send your cash at an optimal time, getting the most for your money. Use a source like the Commonwealth Bank exchange rates which are updated frequently and reflect the true current market exchange rates.
#3 Use Risk Management Tools
If you intend to transfer money often, especially if you will be sending money on a set schedule, you may want to look into risk management services. Some money transfer companies will offer fixed exchange rates, allowing you to lock in an exchange rate when it is low and keep that low rate for a set period of time. This is definitely something to consider when you see a good rate!
#4 Compare Options
There are a lot of money transfer companies out there that you can choose from and some will suit your needs better than others. If you want to send cash, without any bank accounts involved, look for a storefront money transfer company where you can pay in cash, in person. If you need your money sent quickly, look for an online wire company that will send money instantly. Assess all your options and pick the one that suits your situation best.
#5 Amount Matters
The amount of money that you are sending definitely has an impact on the rates and fees that you will pay. Some online money payment companies will give you free transactions for amounts under $500, making you only subject to the current exchange rate. Other services will reduce the exchange rate when you send more money. The amount of money you are sending matters and you should take advantage of transfer services that give discounts based on how much you send.
The best thing you can do before sending money abroad is to do a little research and see what company can give you the best deal on your transfer. Always check the exchange rate so you know if you are getting a good deal!