When making international transfers, the perception is that banks are the fastest and cheapest option. But, the reality is otherwise. Online money transfer services allow customers to pay significantly less and receive equivalent quality (if not superior). Today, some credible online service providers transfer funds to major and less mainstream destinations (like Malaysia). If you don’t know how to spot a good remittance provider, we’ve listed some factors to help you narrow down your choice.
Exchange Rate
Every form of international transfer involves a particular exchange rate. In the remittance market, the exchange rate is undoubtedly one of the most vital aspects of choosing a provider. Whether it’s a one-off lump sum or a series of small but frequent transfers, a slight change in the exchange rate can save you thousands of pounds.
The exchange rate never stays the same, but some service providers generally offer better rates than others. Therefore, don’t just pull the trigger on the one that appears to offer the best deal. Call around, do some online research, and determine which provider gives you the highest return for your money.
Transfer Volume
Not all companies can handle large deliveries despite conventional wisdom and may have different limits on the transfer volume. Some providers specialize in handling small transfers, while others can help you make sizable business transfers. Make sure to avoid using banks for higher volumes because they demand exorbitant fees to wire funds to countries like Malaysia.
Transfer Fees
In addition to the exchange rate, another factor can prove to be a “money drainer”. Some service providers charge flat fees, meaning they take a fixed amount for every single transfer. On the other hand, others charge percentage fees, less than ideal for large transfers.
Why? Because 1% of 100 GBP may not be much, the same fraction for 5,000 or 10,000 GBP is quite a different story. With some providers, your fee can go higher or lower based on the selected transfer method.
Like the exchange rate, you need to shop around and find out the ones that charge the lowest fees. However, don’t be fooled by the “zero fees” promise by certain companies. They may charge zero on the surface, but they bury their fees within the exchange rate margin.
Speed & Security
When making a money transfer to Malaysia, you’re effectively entrusting a third-party provider with your hard-earned cash. Naturally, you want to make sure they’re part of a national or even international regulatory body. For example, in the U.K, the Financial Conduct Authority (FCA) is the entity governing online money transfer companies. It’s also vital that the provider is using the latest encryption technology to secure the transaction.
Most online transfer providers take from 24 hours to five days when making the transfer. Of course, the exact delivery time depends on the recipient country. For example, a simple transfer to a major European country may take one day, but the same transfer to a country like Malaysia may take three days. However, some companies have a stronger presence in Malaysia and can perform the task within 24–48 hours max.
Bottom Line
It’s always challenging to figure out the best remittance provider, especially if you’re new to this field. The vast spectrum of providers with attractive offers/promises can lead to unwise decisions. Therefore, it’s advisable to make your final selection consistent with the following factors.
You need a provider that offers sensible exchange rates, supports small and/or large deliveries, and doesn’t tack on hefty fees for every single transfer. In addition, it’s best to choose an FCA-regulated provider that can maximize a transaction’s security and speed with the latest technology features. Is there such a company? Yes, Lycaremit! To find out more, register right now and make a low-cost, secure, and speedy money transfer to Malaysia.
