When comparing different Forex options to transfer money overseas, there are a number of factors to keep in mind when deciding which one to go with.
- Fees – this is the most obvious cost that most people look for when transferring forex. It’s easy to identify and compare. Some providers will offer no fees for transactions over a certain monetary value (e.g OzForex for transfers over $10,000). Some providers have a fixed fee for sending any amount and others have different methods of calculating fees.
- Recipient Fees – this fee is levied by the receiving bank or financial institution. Banks tend to be the ones who usually charge this type of fee to international banks transferring money into their accounts. Some of the providers may be able to help you avoid this fee. For example – OzForex has their own bank accounts in many countries and they make a consolidated deposit to their overseas account consisting of many customer transactions. They then make a local bank transfer to send your money to its final bank account destination. In other words they take all customer transfers to the USA for one day and transfer them into their New York bank account. They then transfer the money from their NY bank to the recipient’s US bank and hence avoid the recipient fees. This is not available in all countries – ask OzForex (1300 300 424) if you are interested.
- Exchange Rates – the exchange rate can often differ significantly between the banks and various providers! It can pay to shop around to find the best exchange rate – in some cases the exchange rates will vary between providers by several percent. This can really start to add up as you send larger amounts of money. This is often a hidden area where consumers can get stung in forex deals – don’t just assume that you are being offered the best available exchange rate!
- Transfer Time – you will want to consider how long it will take your money to arrive at its destination. If you have a tight timeline, compare several providers before making a forex transfer. Many institutions now send money overseas within a few days – but if you’re sending a foreign cheque for example, it may take over 20 working days to clear. The recipient may be highly unimpressed to have to wait that long for funds and it may jeopardise a business transaction.
- Maximum Transfer Amount – some providers place limits on how much you can send in a transaction. For example with Xoom they allow up to $2,999. Western Union applied a limit of $999 to new account holders sending money overseas.
At Forex.net.au we provide general information only about foreign exchange, exchange rates, transferring money and other financial services. We provide information as a guide only to help you in knowing what services are available in the market.
If you want more specific advice you can contact the advertising partners we have on this site or speak to a licensed financial institution. They will be able to provide specific financial advice.
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