There are many reasons you may need to use international money transfers, it could be that you have an overseas bank account, moving your pension or salaries to your home abroad or simply moving your money between homes. But no matter what your reason is, you should ensure your money is safe at all times and you are getting the best deals available on the market.
For those who live abroad or have loved ones living across seas, it can be hard to get your head around buying and selling different currencies and transporting it between home or abroad.
The foreign exchange market is responsible for determining the exchange rates of your currencies, these rates may fluctuate greatly over a short period of time mainly due to demand of the currency, the amount you are converting, the time scale needed to change the currency and inflation.
The aim of making an international money transfer is to exchange your currency for the cheapest exchange rate and transfer the money abroad for the lowest possible cost. It is estimated that 95% of the UK use banks for international money transfers, however this could prove costly to use banks, despite being convenient.
The fees are the charges the provider passes onto you for their services; this covers transfer charges and overseas banking fees.
For amounts equalling or over £250 it pays to compare both your high street bureau de changes and currency specialists which can easily be found online but ensure to check the company thoroughly before making any deposit. High street banks often have high exchange rates
This can be done by using many methods. First by finding out how long they have been trading, be very wary of newly formed companies. Scams are everywhere and you should always be aware of them where your money is concerned.
Secondly, you should ensure that they are regulated by the FSA (Financial Services Authority), this means they have strict procedures to stick to give you piece of mind that your money is safe. These two methods normally give a good indication about the status of the company but trust your instinct, if you have the slightest concern that everything isn’t all as it seems then don’t transfer your money with them.
If you are ever unsure about reliable sites be sure to read moneysupermarket’s guide to international money transfers.