Transferring money abroad can be quite tricky, are there quite a few things you need to think about before sending your hard earned cash. This guide will detail all you need to know about making international money transfers.
Who would need one?
If you want to send money abroad for any reason, then an international money transfer might be what you’re looking for.
Whether you need to send a large amount of cash abroad to fund a holiday home purchase, or whether you just need to send some money to a relative as a gift, this guide should help you take the best course of action.
So what do you need to know about international money transfers?
The costs
When making an international money transfer there’s two costs that you need to make sure you factor in; there’s banking and exchange fees, plus the exchange rate.
The banking costs may include charges to actually transfer your money, and whether the overseas recipient’s bank has any fees to receive foreign currency, make sure you check out both sets of potential costs.
The exchange rate is a bit more complicated as you need to monitor any changes closely, especially if you’re transferring a large amount of cash.
The importance of the exchange rate
When sending large amounts of cash abroad, the exchange rate is extremely important. For example, in September 2010 a property that cost €200,000 abroad would have cost £169,780. However, as a result of changes in the exchange rate one month later, the same property would have been almost £9000 more expensive.
Getting the most for your money
Before you initiate an international money transfer, you need to ensure you are getting the best return for your cash by following the exchange rate closely and making sure you have factored in the cost of fees.
Make sure you use the right currency specialist
Before transferring your cash via an international money transfer, you should always make sure you are using a trusted and certified currency specialist.
You can use a price comparison site like moneysupermarket.com to compare the currency specialists to make sure that you getting the best return for your money.
Additionally you should check:
· How long the currency specialist has been in business
· Whether or not the company is regulated by the FSA (Financial Services Authority)
· Whether or not the company is registered with HM Revenue and Customs