By Justin Thomas
Banks, Non-Bank financial institutions and online service providers compete on the global market for money transfers, but companies that are more innovative lead the pack for such services.
Many people believe there are a mere three to four ways to make a currency transfer abroad. True, but if said a decade ago. Ever since, there emerged many online money transfer and foreign exchange companies, which grew as reliable and flexible as to broaden the array of methods and, thus, form a very competitive global market for this type of service. Therefore, research is essential before opting for a method. To start out, here are some of the most popular and convenient ways to send money abroad.
Sending a cheque to a beneficiary is one of the oldest currency transfer methods. While safe, it could be very frustrating due to its time-consuming character. Cheques could travel up to 10 days to reach their destination and it takes some more time to clear the check. Furthermore, they are subject to sizable bank fees.
The wire transfer appears to be a more convenient way to send money abroad, plus there is no requirement for you to be a client of a bank and you can send money in the local currency, which will be automatically converted into the beneficiary”??s home currency or the currency of his/her bank account. Banks usually charge a hefty $30-40 per wire transfer but at the same time exchange rates are good, which makes this method appropriate for sending sums exceeding $3,000 “?” $4,000.
Some companies offer cash transfers, whereby a person living in a particular country deposits money with an intermediary and the beneficiary physically receives the deposited sum from a location elsewhere in the world. These companies usually charge a fixed fee plus percentage of the overall sum. Be aware that while most of these companies are trustworthy they charge relatively high fees to transfer funds and restrictions on the sums sent apply.
Sending a debit card is a method, under which the beneficiary receives a debit card and then he/she can receive money on it. Several non-bank companies offer such worldwide debit cards but they also charge relatively high fees on ATM money withdrawals and can freeze the card if it has zero balance for a certain time period.
Another fast and convenient way to send currency abroad is via one of the numerous online money transfer services. Usually, you must have a bank account in a local bank in order to withdraw money from your online account. These services also perform currency exchange operations, but one should bear in mind that rates of different companies vary a lot and usually the exchange rate is about 2.5% lower than the current market rate.
Sometimes it is hard to find your way and choose the best service provider and the best method to make a currency transfer abroad. Try to conduct thorough research of the service provider and compare different methods before choosing the most appropriate option, which would guarantee a speedy service and the lowest possible costs. You should also keep in mind that you have to possess the correct contact details of the beneficiary i.e. full name and address, bank account number or IBAN, SWIFT code of the bank, etc.
