Using your bank to transfer money abroad may not be the best option says Melanie Wright
Tempting as it may be to use a high street bank to transfer your money abroad, it could end up costing you dear.
If you are moving overseas, buying a holiday home abroad, or are already based outside the UK, you can usually beat the banks by using a currency broker to move your money. Not only do they generally offer more competitive exchange rates, but you can benefit from lower transfer fees too.
This is especially important when currency rates are volatile and you have to worry about getting your timing right. Recent weeks, for example, have seen the euro rally after an agreement in principle to extend loans to debt-laden Greece for three years, while the US dollar has weakened following poor US economic data. While the value of the pound has slowly improved since plummeting against many currencies over the last few years, exchange rate turbulence remains a real concern.
One of the problems with using a high street bank to transfer money is that they will usually only be able to buy or sell your currency on the day of transfer. This could mean you end up moving your money on a day when the exchange rate conspires against you.
Specialist currency brokers, however, are able to use various tools to enable you to avoid getting caught out by exchange rate movements. For example, they can help you lock into favourable rates up to two years in advance. It is worth bearing in mind, however, that if the exchange rate moves to your advantage during the period you have chosen to fix, you won’t be in a position to benefit from this.
Don’t underestimate the impact favourable exchange rates can make. It can leave you thousands of pounds better off, especially if you are transferring large sums.
For example, recent research reveals that if you were buying US$100,000 with sterling you could save over £1,000 on the exchange rate and transfer fee alone by using currency broker Moneycorp, provider of the Telegraph International Money Transfer Service, when compared with a high street bank.
Transfer fees are a serious consideration when moving money overseas. High street bank transfer fees typically range from £20 to as much as £40, and, if you are making regular transfers, you will have to pay this fee each time. You will also need to pay a foreign exchange rate and another fee from the bank that receives the funds, typically around 0.5 per cent
Moneycorp, charges a set fee of £15 for a one-off transfer, irrespective of the amount, and if you are making regular payments, you can opt to move funds via Direct Debit at only £4 a transfer. But despite all the advantages of using a currency broker, many people still prefer to stick with well-known banking names because they consider them to be safer.
However, currency brokers are either regulated or authorised by the Financial Services Authority, and there are various checks you can make regarding the safety of your funds.
First, make sure you find out whether your money will be kept in a separate account while in the broker’s control. You should also look at the company’s track record – how long have they been around, and are there testimonials from customers which demonstrate that they offer a high level of customer service? Be wary of new companies that haven’t been around for long and aren’t able to demonstrate a strong customer commitment and financial health.
Peace of mind
Larger currency brokers must be authorised by the Financial Services Authority, and if you want to check whether a company is regulated by the FSA, you can find out at www.fsa.gov.uk/register/home.do. Smaller companies do not have to be authorised by the FSA and so most of these will only be registered. However, they do have the option to be authorised if they want to. Always ask what safeguards are in place before conducting any transactions so you have peace of mind that the company you are dealing with is safe.
There are many issues you need to consider when making money transfers, but you must be aware that failing to consider all the available options and missing out on competitive exchange rates is likely to leave you worse off.
Sending money overseas?
The Telegraph International Money Transfer service, provided by Moneycorp, is safe, secure and easy to use.
The main benefits:
Our free Telegraph Guide to International Money Transfers Written by Rosie Murray-West, the Telegraph’s Deputy Personal Finance Editor, the guide looks at how to get the best rates.
Call 0844 543 9872 or visit www.telegraph.co.uk/readerguides
Source http://www.telegraph.co.uk/
Don’t underestimate the impact favourable exchange rates can make. It can leave you thousands of pounds better off, especially if you are transferring large sums.
For example, recent research reveals that if you were buying US$100,000 with sterling you could save over £1,000 on the exchange rate and transfer fee alone by using currency broker Moneycorp, provider of the Telegraph International Money Transfer Service, when compared with a high street bank.
Transfer fees are a serious consideration when moving money overseas. High street bank transfer fees typically range from £20 to as much as £40, and, if you are making regular transfers, you will have to pay this fee each time. You will also need to pay a foreign exchange rate and another fee from the bank that receives the funds, typically around 0.5 per cent
Moneycorp, charges a set fee of £15 for a one-off transfer, irrespective of the amount, and if you are making regular payments, you can opt to move funds via Direct Debit at only £4 a transfer. But despite all the advantages of using a currency broker, many people still prefer to stick with well-known banking names because they consider them to be safer.
However, currency brokers are either regulated or authorised by the Financial Services Authority, and there are various checks you can make regarding the safety of your funds.
First, make sure you find out whether your money will be kept in a separate account while in the broker’s control. You should also look at the company’s track record – how long have they been around, and are there testimonials from customers which demonstrate that they offer a high level of customer service? Be wary of new companies that haven’t been around for long and aren’t able to demonstrate a strong customer commitment and financial health.
Peace of mind
Larger currency brokers must be authorised by the Financial Services Authority, and if you want to check whether a company is regulated by the FSA, you can find out at www.fsa.gov.uk/register/home.do. Smaller companies do not have to be authorised by the FSA and so most of these will only be registered. However, they do have the option to be authorised if they want to. Always ask what safeguards are in place before conducting any transactions so you have peace of mind that the company you are dealing with is safe.
There are many issues you need to consider when making money transfers, but you must be aware that failing to consider all the available options and missing out on competitive exchange rates is likely to leave you worse off.
Sending money overseas?
The Telegraph International Money Transfer service, provided by Moneycorp, is safe, secure and easy to use.
The main benefits:
- Highly competitive exchange rates
- No commission charges
- Fast transfers, low fees
- Ability to fix exchange rates for a set time period, helping protect from adverse currency movements
- FSA authorised Payments Institution
Our free Telegraph Guide to International Money Transfers Written by Rosie Murray-West, the Telegraph’s Deputy Personal Finance Editor, the guide looks at how to get the best rates.
Call 0844 543 9872 or visit www.telegraph.co.uk/readerguides
Source http://www.telegraph.co.uk/
No comments:
Post a Comment