Do you regularly send money overseas? If so, this article will give you four actionable ways you can save money every time you transfer.
Sending money overseas has never been easier and more cost-effective. Unfortunately, it’s estimated that Australian’s are paying over 3.1 billion dollars in unnecessary fees and poor exchange rates.
Why is this figure so high? Well, it’s estimated that only one in five Aussie’s use a dedicated money transfer provider, with the rest using their banks without even knowing they’re getting stung by hefty transfer fees and exchange rates.
Are you still using your bank to transfer? Or have you found a dedicated money transfer provider? Either way, the below insights will help you save money on your next transfer.
The best thing you can do to save your hard-earnt money is to avoid using the banks, PayPal or other companies that transfer money without it being the core service they offer.
Using a bank to transfer your money might seem like an easy option and often it is. However, people don’t realise that they’re paying huge transfer fees and often an exchange rate that’s 3 – 5 per cent more than the actual live exchange rate.
The same goes with PayPal. It’s an easy option, particularly if the person you’re transferring money with has an account themselves, but you’ll be charged an even higher transfer fee and exchange rate than the banks in some cases.
The reason why these services cost more is that it’s simply not their core business activity. Transferring your money is an add-on and a way for these companies to drive additional revenue.
Companies like the banks and PayPal know they offer a convenient service, but if you know that there are dedicated money transfer providers available – that offer the same convenience at far cheaper rates – you’ll most likely never use the banks to transfer your money again.
More on dedicated money transfer providers to come.
The next step in ensuring you receive the lowest exchange rate possible is understanding the market rates, and how these rates react to certain situations.
As a base, foreign exchange or FX is the value of a nation’s currency against another country. The value of a countries currency is determined by a whole range of things. Supply and demand for a countries export and imported goods, political and even cultural events can determine a countries exchange rate on any given day.
Understanding the exchange rate is important because it allows you to determine how much of the currency you need to send or receive.
For travellers, it’s making sure you have enough money when heading abroad.
For businesses, it’s making sure you send your overseas contractors the right amount when paying them.
And for investors, it’s understanding how much money the mortgage on your overseas investment is going to cost in your own currency.
When dealing with a dedicated money transfer provider, the exchange rate and the amount you’ll receive will be made transparent by the live market calculator. In addition, you can even secure a certain exchange rate for a future transaction. This is particularly helpful for businesses that are working on long-term contracts that require future payments to overseas vendors.
The rate you agree upon now can quickly go up (or down if you’re lucky) and your transfer can be far more costly than anticipated.
While transferring just about any amount is possible, it’s always best that you transfer larger sums less often.
This is particularly important for travellers. If you’re relying on your bank, transferring money as you need it on your journey a few times a week can quickly add up in a massive way. It can often cost $10 or more each time you send and receive money between your everyday account, and your travel card.
The best way to make your money go further is to simply transfer a larger sum upfront. It might a little scary to send off a large sum of money you worked hard for, but it’s always going to be the cheapest option.
If you’re using a dedicated money transfer provider, often they’ll charge little or no fees if the transaction is over a certain amount. For example, we offer no transfer fees on transactions over $2000.
If you have the luxury to transfer your money in bulk, it always pays off – especially if the dollar is good for the currency you need at the time.
So often, our blogs come back to the benefits of using a dedicated money transfer provider. It’s not about boasting our services, it’s about saving you money!
There’s simply too many Aussie’s out there paying unnecessarily high transfer fees and getting poor exchange rates by transferring with the banks or PayPal.
For sure, it might seem like the easy option, but using a dedicated money transfer provider is just as easy and secure. Most of all, it’s far cheaper!
By using a dedicated money transfer provider, you’ll be able to spend less on paying your overseas contractors as a business owner.
As a traveller, you’ll be able to enjoy more experiences with the money you save – I don’t think you’ll be sharing a story about your transfer fees anytime soon…
And as someone sending money home to their family, it means that your money will go further in helping support their life.
There’s simply no need to be paying high transfer fees and poor exchanges rates anymore. A dedicated money transfer provider will help you save money, especially if you regularly transfer money.
Sending money has never been easier and cheaper
Tip 1 – Avoid the banks & PayPal to send or receive money
Tip 2 – Understand the market rates
Tip 3 – Transfer larger sums less often if possible
Tip 4 – Use a dedicated money transfer provider
Throughout this article, we’ve explored four key ways you can save money next time you transfer it overseas.
We highlighted that transferring money overseas has never been cheaper and easier, yet most Aussie’s are still paying unnecessarily high fees and getting poor exchange rates.
Was about avoiding the banks and PayPal to transfer money overseas – these companies are the main reason why Aussie’s are still paying too much when the exchange their currency.
Was about understanding the market rates, and knowing the best times to exchange your money – this is particularly helpful for business owners.
We explored the benefits of transferring large sums at once, less regularly if possible. Often, you’ll receive no transfer fees and the best exchange rate possible.
We discussed the benefits of using a dedicated money transfer provider. It’s the easiest way to transfer your money securely while getting the best exchange rate possible.
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 money transfer they make.
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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