Are you here in Australia and looking to transfer money to another currency? In this article, we detail the best way to do so, the different options available, and the important information for both individuals and businesses.
As an individual, you might be getting ready to set off overseas on a trip of a lifetime. You could be an en expat here in Australia, working hard to send money home to your loved ones. You might even be securing an overseas investment property.
Whatever your reason is to convert your money into a different currency, it’s always beneficial to know how to get the best deal for yourself.
When it comes to converting your money, there are so many different options available. However, it’s important that you understand all the different options, because while some may be convenient, they could be expensive.
And yes, it’s possible to get a convenient transfer with a great exchange rate.
So often we hear stories from our clients who converted their money with the banks, only to be burnt by excessive exchange rates and transfer fees.
It’s often difficult to understand these rates, and most companies keep it this way so their customers don’t fully understand what they’re paying for.
We can’t break down every possible way to convert your money, so instead, we’ll go through the most common ways to convert money based on our experience.
And for the business owners reading this, stay tuned because these ways to covert your money will be the same methods available for your business.
The major banks offer a simple and secure option to transfer your money overseas. Often the transfer is possible within your everyday banking app or online.
Using the banks is an easy option because it’s accessible, and you have the peace of mind knowing it’s secure.
Banks all around the world are able to do this by using the SWIFT system (Society for Worldwide Interbank Financial Telecommunication). This system provides a consistent and universal way to send money overseas, allowing money to move fluidly around the world.
Sound’s good right? Well, there’s more to know if you dig a little deeper under the surface.
When you convert your money with the banks, there are fees associated with sending and receiving your money. It’s not uncommon for banks to charge a 3 – 5 percent premium on the mid-market exchange rate.
To put this simply, the banks will tack on 3 – 5 percent on the conversion rate you can search in Google. It might seem small, but when you’re transferring over $1000 which is likely, it all adds up.
In addition, banks will also charge a transfer fee, which is generally the cost of using the Swift system as your money bounces around various international banks.
All in all, using the banks to convert your money is an easy option, but it’s certainly not the cheapest.
Western Union is another common option for people looking to convert their currency. It’s a simple option if you’re transferring money to another person and they need to pick up the cash directly.
Generally, you will come across a Western Union at your airports and major tourist locations. They do offer online money transfers as well. However, much like the banks, Western Union can be an expensive option especially if you’re converting to cash on the spot.
If you need cash quickly in another country, they’re a decent option but certainly not your last resort.
For both individuals and businesses, the best option is to use a dedicated money transfer provider. The name says it all really – they convert your money as the sole service they offer.
If you’re to use a dedicated money transfer provider, not only are you going to get the cheapest exchange rates and fees, but you’ll also get the same convenient and secure service that the banks also offer.
For example, setting up an account with us takes only a few minutes, and once your account is verified, transferring your money at the best rate is a breeze. If you’re an individual looking to covert your money here in Australia right now, then now is a great time to sign up for your free account.
If you’re a business owner looking to transfer money for your business, then the same goes for you too – a dedicated money transfer provider will become your bottom lines best friend.
Dealing with overseas contractors, or paying overseas accounts can be tricky and become more costly than expected. By having a dedicated money transfer provider on your side, you’re able to secure long term exchange rates, and receive professional guidance around transferring large sums of money.
Converting money as a business does present a few different challenges. These challenges aren’t anything to be too concerned about, it’s more so important that you’re simply aware of them.
Based on our experience with hundreds of different business converting their money here in Australia, we’ve summarised a few key considerations below.
As a business, you’ll often be creating contracts for overseas suppliers or contractors. If you’re going to be engaging in a long-term contract, it’s important that you highlight a fixed exchange rate in the contract.
If you start a contract for a fixed amount, and the exchange rate goes up or down throughout the duration of the contract, then one party is going to be out pocket – you’ll either pay more than expected, or the supplier or contractor will receive less in the end.
Business is about building two-way partnerships, especially in international business – agreeing upon a fixed exchange that’s then provided by a money transfer service will ensure the relationship doesn’t get rocky when the exchange rates fluctuate.
BFX Money Transfer is a dedicated money transfer provider helping people exchange their currencies at great rates. Sign up for your own free account.
We are a registered AUSTRAC business, and pride ourselves on helping our customers get the most out of every single money transfer.
BFX Money Transfer is regulated in Australia as a designated remittance provider with the Australian Transaction Reports and Analysis Centre (AUSTRAC), remittance sector registration number: IND1000519571-001. Australian Company Number (A.C.N) 611 376 820. Member of LEI Identification Number 5493001WDPYLPVM7RZ80.
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