Whether you are importing goods from China or buying an overseas property, you will want to know that you got the cheapest money transfer deal. You may have already planned popping into your own bank to arrange the necessary transfers, but did you know that they won’t offer you the best deal?
The truth is that high street banks are one of the most expensive ways to arrange a money transfer. It’s a much better idea to use a specialist foreign exchange company. They will have access to a higher rate than your bank and can also give you advice on the best way to transfer your money. Let’s take a look at those facts in more detail.
1. Expensive Bank Rates
By using a foreign money transfer service you could make typical savings of 5% compared to transferring the same amount with your own bank. That’s because a specialist money service has access to exchange rates that are very close to the Interbank rate – this is the rate that the banks use to lend money to each other. When you use a foreign money transfer service you get access to live rates and not the static rates that the banks set each morning. As a first step, compare exchange rates online so you can be sure of getting the best deal when you transfer your money overseas, especially when moving around large sums of money.
2. Benefits Of Using a Foreign Exchange Specialist
Not only will you get access to the best rates when you call a non-bank foreign exchange company. You will also get access to the best service and advice. Because exchange services focus on one specific aspect of finance, they have an excellent grasp of what is happening in the currency market and will aim to get you the most beneficial deal on your transfer.
3. Smart Forward Thinking With a Forward Contract
If you know you are going to be transferring regular sums of money overseas, it makes sense to consider a forward contract. Worrying about fluctuating exchange rates can keep you up at night when you are transferring large sums, but with a forward contract, your rate is set in stone for a set period of time – that period is usually 12 months. During this time you can enjoy that exchange rate and the extra money it can give you compared with the current exchange rate if there are adverse currency fluctuations.
4. Shop Around Online For The Best Transfer Deals
It really does pay to shop around for most things online and money transfer deals are no exception. The good news is that you could find the best deal for your situation and currency in moments when you use an online comparison site. Don’t always assume that the first deal you find is the best deal even if it is listed at the top of your Google search results. When you are transferring hefty sums of money around it pays to spend a few minutes, or indeed hours, researching the most beneficial rate.
5. Make Sure Your Currency Company Is FCA Accredited and Regulated
Of course, you need to be sure that any money transfer company you use is legitimate and authorised to be carrying out such transactions. Any UK payment services company that is transferring money and which is not regulated by the FCA is breaking the law. These regulations provide customers with a high level of protection and therefore it pays to look for an authorised company.
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