Disclosure: Bear in mind that some of the links in this post may contain affiliate links (either directly or on the pages linked here) and if you go through them to use the service, this blog doesn’t get any commission for that. The decision is yours, and whether or not you decide to use the services recommended in this post.
The international money transfer industry, like many others, has transformed significantly since the turn of the last century. While this field was the domain of banks and a handful of high-street forex brokers in the past, it has witnessed a FinTech explosion of sorts in recent times. However, now that people have scores of options from which to choose, deciding which service provider to select might seem daunting. It does not have to be – provided you pay attention to a few simple aspects.
The Cost of Your Transfer
The exchange rate that applies on your transfer along with the fees you end up paying have a bearing on the overall cost-effectiveness. For instance, paying no fees but getting a less-than-favorable exchange rate will do you little good. An easy way to address this aspect is to compare how much money the recipient stands to receive for the same amount through different service providers. Fortunately, most overseas money transfer companies give you this information in advance.
Transfer Methods and Speed
If the recipient is in a hurry to receive the money, turning to companies that have agent networks still remains your best bet. If you carry out your transfer during business hours, the recipient may receive the funds in near real time. Some overseas money transfer companies that provide this service include WorldRemit, Ria, MoneyGram, and Western Union.
Bank account transfers may take one to five working days, depending on the currencies involved, the company you select, and the recipient bank’s processing time. Some of the leading companies that facilitate overseas bank account transfers include TransferWise, XE Money Transfer, WorldFirst, and OFX.What works in favor of bank account transfers is cost-effectiveness, because transfers to cash pickup locations tend to attract higher fees. Click To Tweet
The payment method you choose might also have a bearing on how much your transfer costs. Paying directly through your bank account is typically the most affordable alternative. Debit card payments tend to attract higher fees. The most expensive way to pay for your transfer is usually through a credit card.
Depending on where you live and the company you select, you might get to choose from one or more payment methods. These include bank account transfers, debit cards, credit cards, Apple Pay, Google Pay, ACH, CHAPS, BACS, SOFORT, POLi, and FPX.
Some companies such as OFX, WorldFirst, and TorFX give their customers access to hedging tools so they may make the most of fluctuations in exchange rates. These can come in the form of forwarding contracts and market/limit orders. If you wish to lock in the existing rate for transfers you wish to carry out in the future, you may go the forward contract way. Market orders, on the other hand, work as a safeguard against negative exchange rate fluctuations.
Customer ServicePaying attention to customer service levels before selecting a service provider is crucial because you might end up needing assistance at any time. Click To Tweet
Trustpilot, an online review-based platform, gives you an easy way to find out what customers of the world’s top overseas money transfer companies are saying about their services.
Sending money from one country to another is no longer complicated or time-consuming. All you need to do in selecting the right service provider is pay attention to aspects such as the cost of your transfer, how to wish to send money, your desired payment method, and customer support.
About the Author
Jon works with iCompareFX. His job as a researcher has him delving into the functioning of the world’s leading overseas money transfer companies. When he’s not working, he likes discovering new music.