If you’re looking to convert USD to AUD, AUD to Euro or perhaps GBP to Euro, you may have some idea of the amount you’ll receive on the other end, thanks to online currency convertors.
The rate that you have been presented with here, however, is probably not, what you’ll actually receive for your transfer. There are various things, like additional charges and poor exchange rates, which can affect how much money is actually ending up into the account on the other end.
So, how do you get the most out of your currency conversion, without a chunk of it being swallowed up in hidden fees and poor exchange rates?
Here are some handy tips to help you get the most out of your international money transfer:
1. Using your bank to transfer money
Although this may be your first port of call, using your bank to send money internationally is one of the biggest mistakes you can make when transferring money overseas.
Banks are notorious for charging unnecessary fees and offering customers bad exchange rates –which results in less of your transfer reaching its destination.
For example, with a £10,000 transaction to US dollars, banks could add a margin of up to 5 per cent on the interbank rate, in addition to their transaction fee – overcharging customers by up to £400 more than specialist money transfer providers.
2. Do your research on currency transfer providers
Now you know better than to use your bank for currency transfers, it’s time to find a specialist provider who will give you the most bang for your buck.
So what qualities should you look out for?
- A provider who can offer better exchange rates than the banks
- Reduced payment charges
- A dedicated account manager to facilitate your currency transfers
- Fast and secure transfers
- Award-winning customer service
- Ability to make a currency transfer online 24/7
- Global presence across multiple major cities
3. Know your options when sending money overseas
If you’re in a hurry to send money to the US, or anywhere else for that matter, taking out a Spot Contract – a rate based on the live exchange rate on the day – will allow you to make a payment instantly.
With Manx FX, we will always try and get customers the best rate.
If you’re not ready to send USD to AUD, or any other currency parings, just yet, but want to lock in today’s exchange rate, you can secure a Forward Contract. A Forward Contract allows you to ‘fix’ an exchange rate for up to three years – even if it fluctuates significantly.
4. Understand currency convertors
Currency convertors typically show the Interbank Rate, rather than what you receive when you transfer your money.
The Interbank Rate is the rate that banks use when they transfer currencies between each other, and this rate changes by the second.
When a bank publishes their buy/sell rate for a currency pair, a margin of up to 5 percent is often added to the Interbank Rate. Manx FX’s partners allow you to transfer your money overseas at a much lower margin than the big banks, and in turn, customers can receive exchange rates up to seven times cheaper than your ordinary high street bank.
To discover how to get the most out of your overseas money transfers, whether to friends and family or for investment and business purposes, speak to Manx FX today on 01624 694722 or visit www.mfx.im.