As a result of borderless economy, the demand for simple cross-border transactions has never been higher.Especially after Brexit, when the British pound dropped to its lowest since 1985.
If you’re looking make a regular monthly mortgage payments, property purchase transfer, salary transfers, supplier payments or supporting your child abroad, then read on!
Majority of people turn to their banks as a default option when they want to transfer a large sum of money abroad.
Little do they know, that almost all high street banks charge a fortune for transferring money overseas and you can be sure the exchange rate isn’t in your favour either.
Your question to your bank shouldn’t be about exchange rates and fees, because “No commission” fee is often charged with a markup in the exchange rate.
Instead, you should ask:
“How much EXACTLY does the recipient receive in destination currency for the money I am paying in?”
As a general rule banks charge 5-10 times more than online transfer providers, which means that for every £1, you lose £5-10 when you transfer with your bank, which adds up to £100-£1000 if you transfer large sums of money abroad regularly.
If you want to transfer more than £5000/$5000/ €5000 of cash abroad, you’ll probably get the best deal from a foreign exchange broker that can arrange the transfer on your behalf.
One such provider is CurrencyTransfer.com.
CurrencyTransfer.com is the TransferWise for payments over £/$/€ 5000. It is a cost-effective currency management platform.
What don’t you know about international money transfer?
Before we dive in, let’s get one thing clear:
There is no such thing as an international wire.
Banks use the “international wire” rhetoric to charge you extra for no other reason but to make some easy cash.
There are typically two types of bank transfers:
1) ACH (Automated Clearing House)
ACH is an electronic network for financial transactions. It processes large volumes of credit and debit transactions in batches. ACH credit transfers include direct deposit, payroll and vendor payments. ACH is slower and cheaper.
2) Wire transfer
Wires are faster and more expensive.
Wire payment systems only work within their respective countries and transactions are made only in the local currency.
International transactions rely on cooperation between banks in different countries that access the domestic system on either end of the transaction.
This cooperation is formalised through a series of bilateral correspondent banking relationships, which can be difficult to understand.
But really, there is only one thing that you as a consumer need to know about international wire, and it is this – money never actually crosses borders.
There is no international wire, just a series of domestic transactions.
How does CurrencyTransfer.com work?
CurrencyTransfer.com is a currency management platform that is powered by the different capabilities of Fully Regulated Payment Partners around the world.
Want a local ACH payment in the US? They have that covered. Want a local AUD settlement? They have a solution for that too.
The CurrencyTransfer.com’s default payment option is an International SWIFT transfer, which means your payment is sent via the fastest, reliable route and is accurately tracked.
SWIFT Transfer gives you the control to chose the value date when you want your funds to arrive, which is especially important if you have any urgent payments to make (e.g. a last minute mortgage/bill payment, or a supplier invoice).
There are also local payment options available, adding another layer of optionality to the service that can help you avoid the risk of any receiving bank charges.
Who would benefit from CurrencyTransfer.com service?
CurrencyTransfer.com is fit for any kind of individual or business that wants to transfer a large sum of money abroad. It can be one-off or regular payments of over £5000/$5000/€5000.
This can be regular monthly mortgage payments, property purchase transfers,
salary transfers, supplier payments or supporting your child abroad, as some common examples.
Whatever your reasons for making an international money transfer, one of their Account Managers (a specialist currency broker) will provide you with a list of options best suited to your individual requirement.
Whether you need to make a single transfer, or regular payments throughout the year, your Account Manager will assist you along the way to ensure that your funds will arrive at their destination where and when you need them.
Personal Account Management is where CurrencyTransfer.com service really excels.
Account Manager is always at hand to help customers with special arrangements, like low fee same day payments and more.
How can Personal Account Manager benefit you?
Specialist currency brokers (i. e. Personal Account Managers) can take the hassle out of money transfers by advising on when is the best time to make your transfer given the fluctuations in exchange rates in both country currencies.
Exchange rates change throughout the day, and possibly by the minute. For your Account Managers it means, grappling with exchange rate movements – as well as the mechanics of moving money between countries.
With a Personal Account Manager, you get much more personal service compared to your high-street bank. They will take time to familiarise themselves with your circumstances and will be an ongoing point of contact for your regular payments.
CurrencyTransfer.com digital platform also has tools that accommodate excellent hedging opportunities to help you mitigate the risk on your future requirements.
Here are four services you can use on CurrencyTransfer.com platform:
1) Book a Forward Contract
What is is? This feature which will lock in a favourable rate for you now, so when you are ready to make the transfer at that set rate in the future, you can do so at any point between lock-in and a pre-agreed date without worries about exchange rate changes.
Who would benefit from it? Let’s say you have a mortgage payment that needs paying monthly, but the exchange rate is volatile and you think there is a good risk that is might move unfavourably. You can lock in your rate, and then repay on a monthly basis without worrying about any change of cost.
2) Limit order and Stop Loss Service
What is it? Simply put, when you place a stop or limit order, you are making a point that you don’t want the market rate (the current rate at which a currency pair is trading), but that you want the exchange to move in a certain direction before your order is executed. A limit or stop-loss order allows you to lock in an exchange rate that suits your needs, so that a transfer only goes through if that target rate (the stop rate) is met. It can be set to go through if the rate is met that day, within a week, or any time into perpetuity.
Who does it benefit? Anyone can benefit really, but it’s especially for those who know a little about currency trading.
3) Currency Concierge Service
Currency Concierge is personal service that is always available by phone or email. It’s a proactive approach, where your Account Manager will help you figure out your transfer needs and give you guidance.
CurrencyTransfer.com’s Price Alert service ensures that your Account Manager can notify you of favourable market movements and if you agree to the rate, they’ll contact you directly to arrange a transfer.
With Currency Concierge you’ll get all the payment tracking and clearance support, which protects you from funds not arriving as expected (this can sometime be an unavoidable reality of international payments).
4) Regular payment plan
There are a number of reasons why you may need to make regular and timely payments: to pay for an overseas mortgage, education fees or even to pay salaries abroad.
The exchange rate for up to 1 year and is offered at a low rate, so potentially you could save thousands on charges over years.
Your option are: Fix the starting currency or fix the destination currency.
Ready to get started? Step-by-step guide to make your first transfer:
1) Go to CurrencyTransfer.com homepage
- Sign up with your name and email.
2) Complete Registration process
- Fill in Registration Form.
- Read and accept Terms & Conditions. Click “Submit”
- Upload supporting documents (Photo ID and proof of address)
3) Activating your account
- CurrencyTransfer.com will now activate your account on their side, which includes:
1. CurrencyTransfer.com will contact you to make sure they fully understand your specific requirements (to ensure they are best positioned to help you).
2. CurrencyTransfer.com will ensure that your documents are valid and will be accepted by the regulated partners.
3. Your details will be then sent to the the most suitable transfer partner providers for review and activation.
4. CurrencyTransfer.com sends you an email to confirm your account is active.
4) You’re ready to send your first transfer!
- Now you can log in, create an order, click for a quote, review the best offer and book your transfer all within 60secs.
Providing all the documents are acceptable and CurrencyTransfer.com can reach you on the phone, you should be able to make your first transfer within a day.