Sending money overseas might sound straightforward enough, but
without proper planning and research, you could end up losing a lot to
fees and poor exchange rates. Particularly if you are buying property
abroad or regularly sending money overseas, the differences can become
very significant. Don't be tempted to simply go to your local branch or
log into online banking to send a large sum of money, since you'll
invariably end up spending a lot more.
1 - Get a Favourable Exchange Rate
Exchange
rates fluctuate all the time, and even a day or two could make a
significant difference, particularly with larger transactions. It is
important not to take the exchange rates quoted in Google, XE and other
such services too seriously, since these typically reflect the best
possible rates which, in practical terms, are usually unattainable for
consumers. High-street banks rarely have very attractive exchange rates,
so transferring large amounts of money by way of a direct transfer will
often end up costing you a lot more than you need to pay.
2 - Find the Lowest Fees
Do
not be tempted to automatically go for the option with the lowest fees,
since you'll probably end up getting a very bad exchange rate.
Consider, for example, the currency exchange offices that you find in
airports. They invariably advertise the fact that they don't charge a
commission, but the exchange rate tends to be so poor that you'll
actually end up spending much more. Most foreign exchange companies
charge a set one-time fee for each transfer rather than a percentage
but, to get the best deal, you'll want to transfer higher amounts. If
you plan to send money overseas on a regular basis, it may even be more
suitable to go with a company that charges a monthly or annual set fee.
3 - Don't Neglect Security
As
with any banking activity, you'll want to prioritize safety and
security to ensure your money is in good hands. Always ensure that any
international currency exchange service you use is fully licensed and
regulated and that they are insured should something go wrong.
Fortunately, it shouldn't take long to find a reliable and trustworthy
company given the wealth of information available online. Before making
any commitment, be sure to read some reviews, and always familiarize
yourself with the small print. If, for some reason, your money goes
missing or takes a long time to get to its destination, you need to have
guarantees that you'll be adequately compensated.