When you or your clients need to make an international payment it can often be difficult to work out whether your have found the best deal. There are a number of factors you should be considering when comparing the various offerings of different banks and prospective foreign exchange brokers.
The first of these is transfer fees; there is often a fee involved to transfer money overseas this is likely to be dependent on the size of the transfer as well as the method. E.g it is often cheaper to send money online as there are fewer associated staffing costs involved for the provider.
High street banks typically charge between £20 – £40 per transfer. Currency Brokers generally charge less, for example Moneycorp foreign exchange is free for amounts over £10,000 and only charges £5 for online or £15 for trades made over the telephone.
These savings can make a big difference to the overall cost of transferring money: however it is vital to check all factors to make sure you or your clients are making the most of your money.
The exchange rate you receive from the bank is likely to be very different to that offered by a currency broker. This will be due to the ‘spreads’ (the difference between the buy rate and the rate offered to you) that they apply to the interbank exchange rate. The size of the spread can be dependent on the amount being transferred. Generally the larger the total transfer amount the better the rate you will be quoted.
Don’t be mislead into thinking free fees means the best rate; sometimes whether you have paid a transfer fee can impact on the spread offered. A lower or free transfer fee can indicate that the saving has simply been transferred onto the spread. Effectively meaning you get a less favourable exchange rate.
Finally it’s important to take into account the expert guidance and benefits of using a currency specialist. If you or your clients choose to transfer your money over the phone with a dealer, they have certain tools they can use to help transfer money when the rate is in your favour such as locking a rate for a future date. By trading at the right time you can protect yourself from adverse movements in the exchange rates saving a significant amount of money and stress.
Transferring GBP 200,000 into EUR €
On 22nd October 2012 the exchange rate offered would have been 1.2259 = €245,180
On 13th November 2012 the exchange rate offered would have been 1.2533 = €250,660
Waiting just 3 weeks to transfer money would have given a client €5,480
The main benefits:
- Highly competitive exchange rates, meaning you save money
- No commission charges meaning a totally transparent service
- Fast transfers, low fees
- Ability to fix exchange rates for a set time period, helping protect you from adverse currency movements
- FSA authorized payments institution giving total security of funds
For any further information or to refer a client please feel free to contact Lauren directly at [email protected], call on +44 207 828 7000, or visit the Moneycorp page here.