The Best Ways to Transfer Money Internationally

canstockphoto6784077If you need to transfer money abroad, whether it’s as a gift, to pay a supplier or for any other reason, there are a number of options available. Choosing the best one that will save you cash and avoid getting ripped off can take a lot of time and effort when searching around. Here is a rundown of some of the most common ways to transfer money internationally so you can decide which is the best choice for you.

High Street Banks

A lot of people sending money internationally for personal purposes will probably head to their bank or building society on the high street first. This can make it quick and easy to arrange transfers, especially as they have many branches around. However, the actual transfer can take anywhere between four to eight days and if you’ve got a large amount to send, usually over £5,000, it can be cheaper to use another option.

Foreign Exchange Brokers

For those who need to send higher amounts of money internationally and on a regular basis, using a foreign exchange broker is probably the best choice. They offer low fees for individuals and businesses transferring thousands of pounds abroad, and as they specialise in currency transactions will deliver a great exchange rate. FX Brokers aren’t as good for small amounts and there is a higher amount of risk involved as their services are not covered by the Financial Services Compensation Scheme.

Currency Specialists

Currency specialists such as CurrencyFair offer the benefit of solely focusing on transferring currency. Unlike banks and some other financial institutions that have other aspects to their businesses, this means they have more time to find the most cost-effective way to send your money abroad. Usually it can be done online, which also means the money is in the recipient’s bank account a lot quicker than waiting a few days. It also makes it a lot more convenient.

Costs to Note

When transferring money internationally there are two key costs to be aware of and factor in when working out the most cost-effective option. Commission and charges will be added on, but don’t be fooled by fee-free rates that are advertised, as these often make up for it with a worse exchange rate. The actual exchange rate is the other main cost, as it will differ from place to place in order for the financial institution to profit. Decide which option is best for your international money transferring requirements.