Money transfers are also known as telegraphic transfers, wire transfers or international money transfers; they all mean the same thing which is bank to bank international payments.
Money transfers are common amongst people that are making a foreign investment, buying property abroad, paying overseas business suppliers, and people emigrating to a different country.
The exchange rates for money transfers are generally better than cash transfers.
There are two options when carrying out a money transfer and these are:
The bank may seem the like the easy option however, it is likely for it to cost you a lot more money and take longer for the money to go across.
Money transfer companies are experts in money transfers therefore, the service they provide is much more reassuring and efficient.
They can also offer a lower cost for you.
Banks are known to add a lot of fees for international money transfers.
Banks can charge you for transfer fees, correspondent fees, priority payment fees and additional fees if you want to trace or change your order.
To make it even worse, it is hard to know what you are going to get charged for until after the transaction!
Tariff Schedules made by the banks are very long and confusing, normally the information you are looking for is buried within the document.
Many money transfer specialists, do not charge fees for money transfers!
They make their money from the exchange rate!
Whenever you are looking at a currency exchange everyone wants to get the best rate possible and avoid the fees.
If you have ever seen a foreign exchange board before you would have noticed that there are two columns; a buy and a sell price.
The part in the middle of these is a ‘spread’, this is the profit margin that is taken by the provider.
Due to this, the customers want the gap to be small so they do not have to pay out too much on fees!
The buy and sell rates can be 15-30%, this means giving 15-30% of your money away due to exchange rate costs.
It is more cost-efficient to order in advance and to avoid the airports!
Large UK supermarkets are good for cash-based currency exchange, Teco, Sainsbury’s and Asda are known to have the best rates around.
Supermarkets also have a high level of convenience as well!
There are four simple steps when transferring money these are: identity check, get an exchange rate, make your payment and finally your money is sent out!
Exchange rates are not standard rates!
Money transfer companies and banks will set their own rates by adding a margin on their wholesale rate.
Banks can charge in between 2%-5%.
Generally, the larger the amount of money you transfer, the better the rate.
The margin can also change depending on what currency you require.
The more popular currencies such as Euros and US Dollars have somewhat tighter margins.
A 2-5% margin may not sound like a lot but when you look at it on larger amounts of money it can really sting!
As an example:
If you are interested in buying a property in France and you have £240,000, if the bank charges you 3.5% for exchange rate costs, then £8,400 is taken from you just from these costs!
That is not including the additional bank fees too!
Banks will not help and guide you through the process!
They charge a lot of money for a poor service.
Money transfer specialists will offer a better rate and assist you throughout the whole process.
They are also a lot more experienced within this area of expertise.
No, they are not the same.
There are many money transfer companies and they may all look similar but they are very different.
Some companies tend to only do ‘micropayments’ to family and friends.
These are companies such as Western Union, MoneyGram, WorldRemit, Azimo and Remitly.
There are a lot of ‘online-only’ platforms or apps.
These are companies such as PayPal, TransferWise, Revolut and CurrencyFair. These companies are very much do it yourself companies; they do not offer any assistance or guidance.
The most help they can offer is webchat or support emails.
Finally, there are money transfer companies known as currency brokers.
This is companies that can offer you full guidance and support the whole way through the process.
These companies are experts with the larger amounts of money.
Any queries you may have you can get in contact with your account manager and ask them.
When using a money transfer company, you should check that they are regulated by the FCA (Financial Conduct Authority).
If they are regulated by the FCA then they are required to keep your money in a separate, safeguarded client account.
You can check to see if a company is regulated by the FCA by checking the FCA register.
Regency FX are a UK based independent currency broker, specialising in high volume transfers.
We pride ourselves on our premium level of customer service, you will be allocated your own personal account manager whom you will have direct access to.
All funds transferred through Regency FX are made using client segregated accounts in accordance with the FCA (Financial Conduct Authority) guidelines.
The important thing is the comparison, online rates shown on Google and other search engines are not always accurate for the consumer.
They can often refer to the rates that banks exchange at rather than what is available to you, the customer.
Even if you are just looking for property at this stage it is worth getting in touch to discuss your options.
We can monitor the market on your behalf enabling you to budget more effectively.
As a first-class currency transfer service, here at Regency FX we endeavour to get the best available rate regardless of how much you are transacting.
Get a quote and see how we stack up.
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Payment services for Regency FX Ltd are provided by The Currency Cloud Limited. Registered in England No. 06323311. Registered Office: The Steward Building 1st Floor, 12 Steward Street London E1 6FQ.
The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money (FRN: 900199). In the US Currency Cloud operates in partnership with CFSB. CFSB fully owns the bank program and services are provided by The Currency Cloud Inc.