It’s common for people to rely on high street banks to handle all their financial transfers. However, using your bank isn’t the most cost effective or convenient way to transfer large sums abroad. In fact, most banks charge transfer fees and fail to offer a competitive exchange rate, potentially leaving you significantly worse off.
Read on to see why you should consider using a specialist currency broker instead…
The most immediately appealing thing about using a currency broker is the more competitive exchange rates you’re able to achieve. As currency brokers work on smaller margins than most banks, they can offer you a better exchange rate – meaning you get more for your money.
On top of providing competitive exchange rates, leading currency brokers won’t charge you transfer fees for managing your transactions. If you have to send money overseas on a regular basis, to meet mortgage payments for example, not having to pay transfer fees can result in a significant saving over the course of the year.
After registering with a leading currency broker, you’ll be assigned a personal Account Manager. Their job it is to guide you comfortably through the transfer process, become familiar with your situation and needs and answer any questions you have. They’ll be able to explain the company’s services in detail and recommend the best options to suit your personal requirements. Being able to benefit from a greater level of customer support is one of the main advantages of using a currency broker over a bank.
There are many factors that affect exchange rates, like politics, economic news and even the weather. Keeping up-to-date with the changes in exchange rates can be extremely difficult, and with currencies having the potential to shift significantly from one day to the next, knowing the best time to move your money overseas is tricky.
Luckily, some currency brokers have experts on hand to explain market movements and keep you informed of any forecasts which might have an impact on your transfer.
Be sure to ask your currency broker about the variety of transfer options they offer, as they should provide more than the standard trade-on-the-spot method (known as a ‘spot transfer’).
Other transfer options include using a ‘forward contract’. This allows you to freeze an exchange rate for up to two years in advance of a transfer, so you avoid market fluctuations and can budget more comfortably.
‘Regular Overseas Payments’ (ROPs) services are a transfer option particularly popular with retirees and expats. With a ROPs account you can arrange to send money abroad automatically, on a date of your choosing, and know that your transfer will be made at a competitive exchange rate, fee free. Other transfer methods you may want to research include ‘stop loss orders’ and ‘limit orders’, two different transfer options which help you either target an exchange rate or set a worst-case rate.
Leading currency brokers are flexible when it comes to managing your currency transfers, allowing them to be organised via phone or email. Some brokers also have online platforms so you can send money 24/7 and mobile apps so you can check your accounts with ease.
If you’re concerned that using a currency broker may not be as secure as using a bank, you needn’t be. As long as the broker is authorised by the Financial Conduct Authority (FCA) and operates segregated client accounts, you can rest easy in the knowledge that your funds are secure. You should also choose a broker that has a high credit rating and receives positive reviews from existing customers.
A currency broker doesn’t just focus on one specific kind of international money transfer. Whatever the size of your transfer or the reason for your trade, they can help you save time and money.
Whether you’re emigrating, repatriating, buying foreign property or planning to work overseas, a currency broker will work with you to understand your requirements and make the process as stress-free and convenient as possible.
Next time you need to arrange an international money transfer, be sure to consider a leading currency broker rather than the high street bank – it could be one of the best financial decisions you make.