Common Sense Primer for International Money Transfers
Category | Travel Tips
| Updated: 20/02/2024
Simplifying a Tricky Business International money transfers are complex. There are several hands in the pot as your money travels from the U.K. to foreign countries, so you have to be careful. This is true for one off payments and ongoing transactions as well. Inform yourself beforehand and you won't add unneeded confusion and stress. Some of the knowledge you need is specific to foreign money transfers, but most is simple common sense and basic awareness. Apply the common sense you use in other transactions and you'll avoid unnecessary difficulties when you send money abroad. Start by following the sames rules you follow in everyday physical transactions. The same rules that hold here apply to international transactions as well, with a few extras added. Keep this in mind and you'll reduce the chance of unnecessary problems right from the start.
The Same Rules Apply, at Home or Abroad When transferring money to foreign countries from the U.K., don't do anything you wouldn't do on the street in London. You wouldn't write a huge check to a stranger on the bus, so don't send money overseas unless you're very familiar with the person receiving it. And you wouldn't let someone look over your shoulder at the bank, so never provide sensitive information to anyone without knowing their background. Make sure you do your research. If you were buying a book online, you'd take the time to read some reviews. Use the same approach when sending money overseas. You can start with a good search engine, but probe deeper as well. Make sure the institution you use is certified by the FCA and read customer reviews. Do your homework to protect yourself from scams and search for reasonable exchange rates and fees. And always insist on transparency, just as you would buying anything else. Have the company describe how they perform international money transfers online. Find out exactly what's involved and how they protect your funds. Ask for their fee schedule and their policies on changing exchange rates. If the company you're considering has any qualms about this, move on to another one immediately. Reputable firms have nothing to hide and want their customers to feel at ease when using their services.
Maybe you should consult a specialist? Once you've researched enough to avoid disaster, use progressive focus to hone in on the best fees available. There are many large, reputable firms you can use to send money from the U.K. overseas. Companies like PayPal, MoneyGram, and Western Union have built strong reputatons. They also have secure websites or offices all over your city. They're convenient and reliable, but you pay for these benefits with extremely high exchange rates. The same holds true for most banks. But there can be problems with smaller firms as well. They are sometimes not subject to the same high level of regulation as the larger companies. There can also be numerous delays when using smaller companies, as they often lack the resources necessary to expedite funds. Both the larger and the smaller companies present potential difficulties. And these difficulties become very costly over a short time, especially if you need to transfer funds overseas often. So what's the answer? Many times, it is best to go with a midsized company that specializes in international money transfers. They often have the best exchange rates and combine speed with reliability. Because they specialize in foreign money transfers, many of these companies offer attractive boutique services as well. These services can save clients time and money both, especially those who transfer funds overseas frequently. Go Slow, Watch the Market In emergency situations, you might have to target speed at the expense of low costs. But whenever possible, plan ahead. Monitor the exchange rate market and comparison shop at different times. Call ACE-FX in advance, and inquire what services we offer to save clients money. Some of these services can save you thousands over the course of several transactions. Moneycorp, for example, will lock in attractive exchange rates or notify you when these rates become available. International money transfers can be expensive and risky. They pose the same potential difficulties as any other transaction, but you have to consider problems unique to them as well. Consider your options thoroughly before committing funds. Decide in advance which factors are most important to you at a given time, and choose a strategy that takes these into account. With diligence, you can protect your investments with a set of common sense tools that caters to your specific needs.