As a business or high net worth individual, whenever you are shifting large amounts of money to and from the Isle of Man there are basically two ways of going about this.
One way is through a mainstream bank, the other through a reputable, regulated money transfer provider.
When comparing the efficiency and cost-effectiveness of using a bank or an FX currency exchange specialist Maximizing Value and Minimising Costs - MFX, there are marked differences.
Both routes offer a high degree of safety, meaning there is overwhelming certainty that the funds will arrive at their intended destination. At the same time, in the very unlikely event that the transfer process goes pear shaped and the money goes missing, there is also the opportunity for recourse.
The charges that banks impose for sending money transfers internationally are consistently higher, however, and the time it takes for a transaction to go through can often take much longer.
As an example, if you engaged an international payment provider, you would normally expect a payment to arrive the same day – and certainly no longer than a couple of days, depending on the status of the destination country, the type of payment method and the time of day the transaction was initiated.
Even with a fair wind behind it, using a High Street bank would normally take two business days at best and five days or more in many situations. So at least twice as long.
A transfer expedited by an FX specialist would be consistently faster than a bank because they would use a more streamlined service and be dialled into local banking networks.
Dedicated foreign exchange providers also offer more competitive exchange rates and impose lower transaction fees than banks. This is because they often have panels of liquidity providers or banks bidding for your requirement to provide the best rate. As an example, if you were transferring £50,000 overseas through a leading international currency exchange, who are used to working with numerous currencies worldwide, the transaction costs would typically be around 50% less than via a bank. If those payments were being made on a regular basis, this could result in a lot of unnecessary expense.
Handling niche sector Isle of Man payments
This has particular relevance to niche business sectors on the Isle of Man, like aviation and shipping, where there is often an on-going requirement to facilitate international payments Managing Currency Exposure in Your Business for vendor supplies and services, employee salaries or other business-related payment obligations. If you are involved in yacht or aircraft chartering, then this is something with which you would be familiar.
Foreign exchange specialists also tend to offer more flexibility with regard to cost-effective payment options, rather than a one-size fits all approach, e.g., use of debit cards and wire transfers.
With international payments, it pays to keep your options open
If you are located on the Isle of Man and looking to make or receive international payments, the good news is that you have a choice as to whom you use.
You may have been working with one provider for a number of years. who has delivered a reliable service. If you are new to making overseas payments, however, or have become frustrated with your current provider – either through the time it’s been taking or their mounting costs and fees - then now might be the time to seek out alternatives.
Indeed, having other options up your sleeve in terms of providers is a sensible way to reduce risk. Being reliant on one provider can actually create risk. One example of this locally was when Nedbank announced they were pulling out of the gaming industry and serving notice on customers to close their accounts.
As a dedicated IOM FX brokerage Get Your FX Comparison - MFX, MFX is partnered with many of the world’s leading FX specialist providers, who have years of experience in achieving the most competitive exchange rates for businesses, where there are no hidden transaction costs, with transfer fees being kept to a minimum.
Talk to us today about your specific requirements and we’ll gladly point you in the right direction. To find out more or to arrange a non-obligatory appointment, either call MFX directly on 01624 694722 or email david.shimmin@mfx.im
MFX Ltd is a wholly owned subsidiary of the AIM-listed Manx Financial Group and a sister company of Conister Bank.