There are two options which are, to use a bank or use a currency broker.
A lot of people think that using the bank is easier as your money is already in there however, banks are known to have uncompetitive rates and lots of fees.
Banks are not the best way to exchange large amounts of money abroad.
Currency brokers can offer much more competitive rates.
This is due to fact that they have far less overheads than the banks.
So, they can pass their savings straight to the customers, offering them a better rate.
Banks generally charge 3-4% more than currency brokers.
Most countries do not have limits.
The UK, US, Canada, Australia and New Zealand and the EU countries have no limits.
China, India, Russia, and Argentina do have limits.
The UK banks do set their own daily limits which are:
Lloyds has a limit of £30,000.
Barclays has a limit of £50,000.
HSBC has a limit of £50,000.
Natwest has a limit of £25,000.
When you are looking at sending large or frequent amounts of money this can become very frustrating.
Currency brokers tend to not have daily limits.
There are two costs that are transfer fees and exchange rate costs.
Most people are aware of the transfer fees but not so educated on the exchange rate costs even though they normally sting more!
Most transfer fees are between £10 and £25.
If you need to make regular transfers, then these can really add up!
Banks and currency brokers will set their own exchange rates.
Usually, the more money you send the better the rate.
The exchange rates are changing constantly every few seconds.
The smallest change within the rate can cost or save you thousands!
For example, on a £100,000 transfer if the rate changed in your favour even by 1% then that is £1,000 you would be saving!
Changes like this can happen daily
Banks and currency brokers use the same payment system called SWIFT.
SWIFT has been around for many decades; it helps to connect the banks together from all around the world.
Before exchanging the money, check to see if the company is regulated by the FCA.
The FCA is the Financial Conduct Authority.
If a company is regulated by the FCA then they are required to keep your money in a separate, safeguarded client account away from the company's funds.
To check to see if a company is regulated by the FCA check on the FCA register online.
Many websites provide live rates such as XE, Daily FX and Oanda which purport to be the best rates to send money.
However, the rates you are seeing are not actually available to customers who want to make large exchange transfers. And there will be significant currency transfer fees involved.
They are known as ‘interbank rates’ which are not available to other businesses. This means that only the banks themselves and large financial institutions can use them to make large bank transfers.
Not even companies that trade in millions a day and transact large bank transfers every day can use them! Don’t be fooled, into thinking that these are the best rates available.
There will be disclaimers near them saying something like “not available to customers” or “for informational purposes only”.
To get a real, accurate quote before you execute a large bank transfer make sure to get one from a bank or currency broker! Only that way will you be sure of the best currency transfer fees.
As I have previously mentioned, the exchange rates are constantly changing so it can be hard to find the best one.
Even tiny changes in the rate can drastically affect the financial aspect of the transfer.
A move of as little a 1% on a £200,000 transfer is £2,000!
Changes like this can happen daily!
A good currency broker can monitor the rates for you and let you know if the rate moves in your favour.
Currency brokers can also check over your details to make sure everything is correct before going through with the transfer.
Some currency brokers are online-only platforms, with little guidance involved.
For a large money transfer, it is nice to know that there is someone experienced that you could talk to.
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.