Moving funds between currencies and countries can be a daunting prospect, particularly if you are moving a large sum. The conventional banking channels often make the process difficult, expensive and you tend to lack any real control. The advent of the non-banking money transfer industry over the last decade has been driven by consumer demand for service and cost effectiveness. The old banking channels provide rates that are well away from where the market might actually be trading, and they charge all kinds of different transaction fees. Often the total cost of a making an exchange of currencies can be in excess of 3% of the amount being exchanged.
Use a Non-bank Forex Specialist
Finding a good non-bank money transfer provider is relatively easy using the internet. It pays to approach a company with an office in your country, as it is easier to communicate with someone in your own time zone. Reputable companies will also make clear the measures they have taken to assure that you funds will be safe while the transfer is taking place. Most money transfer companies do not charge fees for transfers of more than 5,000 of the local currency. Usually the rate away from where the wholesale market is trading is less than .75% which represents a huge saving over traditional bank channels.
Good providers will also provide a higher level of service than you are used to from the banks. Be sure to investigate the different types of orders available to use. They enable to you place orders away from where the market might currently be, enabling to you save even more money should the market move in your direction. This is something the bank will only do for large institutional clients. Most non-bank providers will also send updates on currency pairs of interest, making it easier to make an informed decision when it comes to making a transfer. The process is simple when dealing with a non-bank provider. Once you have an account (which costs nothing to set up), it works like this…
3 Step Process
- You call and advise your provider the currency and amount you want to transfer.
- They lock in a rate for you, fixed at the time of agreement – this is where you make the savings.
- You settle with your provider which means depositing the funds in their trust account. 1-2 days later the funds will appear in the destination currency account.
Money transfer companies have in depth understandings of how the global payments system operates, so a good operator will keep you informed on the progress of your money transfer.
As a total package it is easy to see why the growth of independent foreign exchange companies has been so rapid. Transparency, cost effectiveness and service are all beneficial to the consumer, and easily provided by the best currency exchange specialists.
This article was provided by the team at Direct FX, a local team of foreign exchange veterans providing better exchange rates to individuals and businesses throughout New Zealand and Australia.