Whether you have your business set up abroad or you export goods and services, one thing that you have to do is make regular payments and money transactions. For a lot of people, this can be extremely tricky because they don’t know how to go about. In this article, we will tell you all you need to know about transferring money online without getting affected by the fluctuating currency rates.
Know the Hidden Charges
One of the best things that you can do to save money while transferring it abroad is to know the exchange rate of pound against dollars, or the currency that you usually deal in. Most of the people turn to their bank when moving money overseas, because they feel it is their best option. The truth is that banks offer poor exchange rates and apply a lot of hidden charges. Most of the people don’t even bother checking the rates, and end up paying more than they should.
First of all, you need to do your research online and look for sources like these foreign currencies direct review to get an insight and learn about money transfers. International payments generally fall in two areas: fees, and exchange rate. Fee refers to the transfer charges as well as overseas bank receiving fees, whereas the exchange rates refer to the commission fee that the banks claim. These exchange rates are calculated after taking into account the following factors:
- The amount that you are transferring.
- The currency you are dealing in.
- The exchange rate of the currency at the time of purchase.
- The time-frames you are working in.
How to Get Your Hands on the Best Deal
You can get in touch with currency specialists or application for transferring and hold large amounts of money. Most of these online tools are free, can be accessed 24/7, and give you the advantage of being in charge of your money.
Choosing a Currency Specialist
Here are some tips that will help you select a reliable currency specialist:
- See how long they have been in business.
- Check if they are authorised by the regulating body and comply with the regulations set by the body.
- See if they are registered with customs as an overseas money service business.
- Do they hold their client’s money in segregated accounts?
- Do they do edit the accounts on their website?
- If their balance sheet is strong.
- If they have insurance to give protection to their customers.
- What is the size of their company?
- If they have access to SWIFT, which is the world’s largest payments and settlements network for domestic and international trades.
A currency specialist will cost you 2 to 4% cheaper than a bank, and by avoiding banks, you will be able to save on the international banking fees as well. So, this is how you can minimise the loss caused by transferring currency overseas.