Forex Providers For Transferring Money Overseas
Comparing Forex Exchange Providers
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. 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. Some forex transfer companies have 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. For example 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 or with all forex providers.
- Exchange Rates – the exchange rate can often differ significantly between the banks and various forex providers! It can pay to shop around to find the best exchange rate – in some cases the exchange rates will vary 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, you may want to 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. This may be a limit just for the first time you transfer forex with them or it may be a cap for all account holders.
At Forex.com.au Australia 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. Disclosure: Some links displayed on this site generate a referral fee for us if you click on them and then choose to transfer money with that provider. You are under no obligation to deal with any business mentioned on this website.