Making a Currency Transfer? Why you should never go to Banks or Brokers again

Making a Currency Transfer? Why you should never go to Banks or Brokers again

Are you buying that home you’ve always dreamed of owning in Spain, making a payment to your suppliers in China or supporting your son through University in the US?

Then you’ve probably been thinking about the most efficient way to transfer your money abroad.

The options seem endless. Banks, brokers and money transfer services can all offer to help you make your international payments. And, judging by the amount of money they pour into building their brands, they may seem like the most straight-forward and reliable methods.

This is not always the case. Unless you’re a global corporation sending millions of dollars abroad each month, it’s unlikely you’ll be benefiting from discounted payment transfer rates. In fact, if you’re a small/medium business, or an individual making personal payments abroad, you’re either being overcharged by the Bank’s high exchange rates and hidden charges or you’re funding your broker’s annual Christmas bonus.

So, whether you’re looking for a more cost-effective way to make regular overseas payments or you’re simply looking to cut the best deal on making that big overseas purchase, take a look at our top reason to avoid banks, brokers and money transfer services for making international payments. You will discover a much smarter way to send your money abroad;

“If you’re regularly using the bank to make payments abroad, you could be losing tens of thousands of pounds a year, which is detrimental to your business’ overall cash flow.”

What the Banks don’t tell you

Don’t forget that Banks are businesses. We’re all clued up on the high rates charged by banks on informal overdrafts, but we often overlook the other ways they can overcharge.

When you’re making an international payment not only are the bank’s currency rates significantly higher than the standard market rate. They are also adding up to 5% hidden interest on the total cost of your currency transfer. So, if you’re regularly using the bank to make payments abroad, you could be losing tens of thousands of pounds a year, which is detrimental to your business’ overall cash flow.

“On top of whopping conversion fees which range between 3.8% – 4.0%, Money Transfer Services may subject you to a fee of up to 3.4% simply for using a credit or debit card!”

Money Transfer services swallow your money

Money Transfer Services like Paypal and Western Union are great for speed of delivery, but you’re paying a significant price for that benefit.

Some will charge you high exchange rates and inflated fees based on your method of payment, and the dates you wish for the money to be delivered. And, while others can be fairly low-cost for sending money internally, the cost are exponentially higher when it comes to making an international transfer. On top of whopping conversion fees, which range between 3.8% – 4.0% you’re also subject to fees as high as 3.4% for simply using a credit or debit card. That’s a crazy amount of money to be spending on sending your hard-earned money abroad!

“Beware the broker who offers you great exchange rates with zero commission, it’s unlikely to ever last.”

Never go directly to a broker again. 

The most important thing to remember when dealing with Brokers is that they are, essentially, salesmen. And, although there are many currency brokers who are happy to offer you fair rates, finding those trustworthy individuals is a difficult process.

Approaching a brokers directly may appear substantially more cost-effective than going through the bank when making an international money transfer. But, there are still a few tactics that some may employ to win your business, and then eventually, leave you paying more than you bargained for.

Beware brokers who offer you great exchange rates with zero commission, it’s unlikely to ever last. ‘Honeymoon rates’ are used to gain your business, fast. You’ll notice as time wears on, those excellent rates you were first offered, grow even higher. So, you could end up losing just as much money as you would transferring your money via banks or money transfer services.

“Companies such as CurrencyTransfer are changing the way that individuals, and businesses make their international payments.”

There are cheaper options to transfer your money internationally

Companies such as CurrencyTransfer are changing the way that individuals, and businesses make their international payments.

Whether it’s a one-off purchase or regular, monthly payments, CurrencyTransfer offers exchange rates closest to the market rate, with no hidden fees and 100% price transparency – so you can compare the amount you’ll be saving versus the bank.

Described as the ‘Expedia’ for currency transfers,  CurrencyTransfer’s online platform enables users to enter the currency and amount they wish to send, and instantly receive multiple, low-cost quotes from FCA-regulated brokers on making that payment.

The difference between using CurrencyTransfer and approaching a broker directly, is that via CurrencyTransfer’s platform, the brokers are actually competing for your business. So, you’re not only guaranteed to secure the best rate possible every time, you’ll save money for your business and keep your accounting in check, because you can select a rate and book a payment for up to 12 months time. Genius!

By using CurrencyTransfer you will never fall victim to the hidden fees and high exchange rates of Banks, brokers or money transfer services again. It is, quite clearly, the smarter way to start making your international payments.

 

Daniel Abrahams, CEO of CurrencyTransfer.com, the world’s first online marketplace matching businesses with the most competitive international payment quotes. Follow Daniel on Twitter and Google+