If you’ve ever searched online for ways to transfer money abroad, then you know the challenge. Whether you’re making a one-time payment or a series of regular transactions, you need to save as much as possible. After all, it’s your hard-earned cash, and you don’t want a middle man taking more than their fair share.
However, there are multiple factors to consider, and the confusing jargon doesn’t help either. Therefore, to help you keep costs down when transferring money abroad, we’ve listed some tips, as follows.
1. Never Forget Fees
The total cost of sending money abroad consists of several elements, including:
Transfer Fee
This is the fee you pay the remittance provider to make the transfer. Some providers charge fixed fees, while others take a percentage of the total amount. Moreover, stay as far as possible away from services that claim to charge “no fees”. If there were such a thing, they’d go broke! Instead of directly charging you a fee, they just make up for it by offering you a far worse deal on the exchange rate.
Exchange Rate
The exchange rate is a vital factor when transferring money abroad. Many remittance providers often don’t offer the mid-market exchange rate, which you find on Google. They’re selling you a currency more expensive than what they pay for, and they keep the difference for themselves. For example, the GBP to US$ rate maybe 1.37, but they offer a 1.2 rate by valuing US$ higher than the mid-market level.
It’s advisable to look for a reliable remittance provider that offers mid-market exchange rates.
Other Fees
Depending on your payment method, you might pay additional fees for using a debit/credit card or even initiating a bank transfer. When wiring via a bank, you’ll have to pay intermediary bank fees and incoming international transfer fees.
2. Be Clear on Your Priorities
Selecting a remittance provider depends on fees, rates, price, and support that each costs money. For instance, some remittance providers charge affordable fees but lack 24/7 support and take at least three days to make the transfer. Hence, if speed is not your top priority, then such a remittance provider might be a sensible choice for you.
The key here is not to find the cheapest option. Instead, your mission is to know what you want and find a provider that gives you the best deal for your money. In other words, you should only pay for what you need.
3. Avoid Banks
You can make many arguments for using a bank, but saving money isn’t one of them. Transferring money abroad via banks puts significant fees on your tab. Your funds will indeed be in safe hands, but you have to go through a lot of paperwork just to make a single transfer.
Bottom Line
Transferring money abroad isn’t complicated, but it takes some research and cherry-picking to find the perfect remittance provider. All you have to do is find a reliable company that offers competitive, transparent fees and comes as close as possible to the mid-market exchange rate. Furthermore, it’d be great if you could receive 24/7 customer support, quicker turnaround, and access to scores of countries.Fortunately, you can get all of that with Lycaremit. Please get in touch, sign up and start transferring funds to anywhere you wish in the world.
