There’s always scope to shop around for a fairer price when sending money abroad. TransferWise can put you in a better place to negotiate a deal
Finding different and innovative ways to transfer money abroad can be difficult. Individuals and companies moving funds internationally can struggle to predict currency movements or know if they are getting the best deal on exchange rates. Often they will simply take the rate offered by their bank or broker, but this can prove costly.
Some banks advertise “free” or “no commission” deals but you may have to satisfy certain requirements to claim them or, alternatively, the exchange rate may be dampened down to compensate.
There are more creative ways to transfer money and save on charges, but before choosing any transfer method you must consider:
- The amount you are sending
- Who you are sending it to and how they want to receive it
- Whether it is a single or regular payment
- When it needs to get there
You should then study the exchange rate and compare it with the real mid-market rate, without charges and the profit the bank is including on each deal.
When transferring to poorer countries, there’s a humanitarian service that allows people to transfer money for free, or gives the option of making a voluntary donation. Xendpay allows people to pay what they want, including nothing. It is one of the global social cause initiatives listed by the Clinton Foundation, founded by former US President Bill Clinton to improve the lives of poorer people around the world.
But other companies have sprung up, offering everybody a fairer rate, no matter where you are in the world. One intermediary helping individuals and businesses negotiate better foreign exchange transactions is former investment banker Matt Richardson.