If you’ve ever sent or received money from abroad, then you already know that even the best international money transfers don’t come for free. In this post, we’ll take a look at why sending and receiving money overseas can be so expensive and offer some ideas on what you can do about it. We’ll also recommend some of the best money transfer providers that can help you save a few dollars on your next transfer.
Why use international payment services at all?
To fully appreciate the value of international money transfer services, we need to start by looking at the alternative – banks.
If you need to send or receive money overseas, you might be tempted to simply rely on your bank to process the transfer. In the end, all you have to do is give them a call and get it done.
However, if you do so, your bank (whoever it is) will charge a transaction fee for processing the transfer – in the US, this fee ranges from $2.50 to $15.00. In addition to this, your bank will also be able to select the foreign exchange (forex) rate that is applied to the transaction and take advantage of the opportunity to earn additional profit by applying a “mark-up” to the prevailing open forex market. evaluate. It is not uncommon for account holders to be charged between $10 and $20 to send or receive $100 or more overseas—understandably, very few customers are completely satisfied with this.
However, international money services are the answer of financial services markets to these outrageously high fees and markets. An international money transfer provider specializes in helping frustrated bank customers send and receive money from all over the world. They offer lower fees, lower markup rates and in most cases also much faster than banks in actually completing the transfer.
While finding the right provider and opening an account can take some effort, using a money transfer service can help you save a lot of money in the long run.
How to identify the best international money transfer services
Currently, there are quite a few different international money transfer services. Determining which one is the “best” is largely subjective, but there are definitely some things to look out for when choosing a provider.
First, remember that when you use one of these services, you are trusting them with your money. Thus, always check if the financial service provider is properly registered and regulated in your country. Please note, however, that some money transfer service providers may be registered overseas (eg in the UK or EU) but still be licensed to serve foreign customers, such as in the US, Canada or Australia.
Then look at the provider interface and/or customer support. Most presenters now have very fast and user-friendly websites and apps so you don’t have to waste time calling them.
Finally (and most importantly) take the time to study their commissions and typical markups in the Forex market. When using international money transfer services, fees and markups tend to vary depending on where you send money from and to, so it’s not always easy to make an accurate side-by-side comparison, but you can still get a good idea of what’s going on. they can offer you.
Let’s now take a look at 3 different well-established money transfer services and see what they have to offer to customers.
Currencies Direct
Currencies Direct is a well-established British company specializing in foreign exchange and money transfers. They can offer transfers in over 40 currencies to 120 different destinations. Currencies Direct do not charge any fees for international money transfers, which makes them a great option, especially for small transfers of small amounts. They apply a premium when exchanging currency, but the rates are usually much better than those offered by banks.
Their low fees, competitive markups, and great app make them arguably the best international bank transfer on this list.
Wise
The British-Estonian fintech company, formerly known as Transferwise, has come a long way since its founding just ten years ago. Wise has long established itself as the best money transfer service among freelancers, digital nomads and travelers thanks to low transfer fees and better bank rates in the foreign exchange market.
Wise account is easy to open and the app interface is one of the best on the market. Wsie also offers multi-currency accounts, which are a great deal for clients who want to hold and keep a foreign currency balance.
Western Union
Western Union is one of the oldest and best-known money transfer providers, but also one of the most ridiculed. Critics of Western Union point out that its commissions and markups can be as high as those of banks.
However, Western Union has an extensive network of offices serving marginal markets in Africa and other parts of the developing world. They also transfer cash only to recipients and are therefore the best provider of international money transfers for those who do not have bank accounts.
Final Thoughts on Finding the Best Money Transfer Service
So, in conclusion, we see that international money transfers always incur some costs. However, if you take the time to find the best international money transfer provider for your specific needs, the cost of transferring money around the world can be much lower than banks tell us.
