An international money transfer can be a confusing prospect for someone that has never sent money abroad before. You don’t want to make the mistake of searching online and simply going for the first option you lay your eyes on. There are several different ways you can transfer money to a foreign land, and thus it is important to choose the right one for you and your requirements. Keeping that in mind, in this post we are going to take a look at four of the options available, assessing the pros and cons associated with them all. So, continue reading to find out everything you need to know.
- Use an online or high street money transfer company – If you take a look on the Internet, you will see that there are plenty of different companies offering an international money transfer service. You can either take advantage of this service online, or you can visit one of their branches. Of course, the online service offers much greater convenience, however, some people prefer visiting the stores physically so that they can receive some advice from one of the professionals. One of the great things about this option is the fact that you will likely have a number of different services to choose from, such as an instant cash option. One thing to note is that the costs really do vary dramatically, as it all depends on the company you use and the service you go for. This is why it is a good idea to do your research beforehand. Assess the options that are available to you, so you can be sure that you get the best deal. You should also make the effort to research the money transfer company in question as well, as you will want to make sure that they are credible and have a good reputation in the industry too.
- Send a cashier’s check – One option is to send a cashier’s check from your bank. To do this, you will need to supply your identification, and you will probably need to have an account with the bank in question. The bank will ask you for all of the essential information that is necessary in order to complete the cashier’s check. They will want to know how much you need and who the cheque should be made out to. Once you have got the cashier’s check, you will then mail it to its destination. You can expect to pay a fee for receiving a cashier’s check from your bank. There are several issues associated with this option. One of the main problems is that you are relying on the postal service. There is always the chance that the cashier’s check could end up lost in the mail. Not only this, but this is not a good option for those who need to transfer money immediately, as overseas postal services can often take a lot longer than one week.
- Use a foreign exchange (FX) broker – Another option is to use the services that are provided by a foreign exchange (FX) broker. This is typically only beneficial for those who are sending a large sum of money, as most FX firms will have a minimum transfer amount. This differs from company to company, so it is something you will need to check out beforehand. When it comes to using this service, you will need to create an account. Once you have done so, you will be able to transfer money with ease. You will typically find that the money will arrive in the recipient’s account on the following day, with a same-day transfer being possible in some instances. You can lock in good exchange rates when you go for this option and if there are any fees you can rest assured that they are likely to be minimal.
- Use your bank or building society – Rather than using your bank account for a cashier’s check, you can take advantage of an international money transfer instead, as this is something that most banks and business societies offer. Nevertheless, you will need to hold an account with the bank in question in order to do this. This is one of the easiest options, as someone from your bank will guide you through the process, which can often be reassuring for a lot of people. This is especially beneficial if you are going to be sending a large transfer overseas, for example, if you are buying property abroad. This is one of many reasons to use a realtor when purchasing property overseas especially. You will typically have several different options to choose from as well, including an express service if you need the money to arrive as quickly as possible. However, a lot of people do find that a bank or building society transfer is one of the most expensive options. There are some banks that offer a fee-free service, but you can usually expect to pay anything from $15 to $30 when sending money to an overseas location. You may find that a bank or building society is a good option if you are only sending a small sum of money. If you plan on sending a large sum, let’s say in excess of $5,000, you are better off going for a transfer company or a foreign exchange firm, as you will benefit from much better rates. Nevertheless, one key advantage a bank has is that it is a secure and safe method of transferring money overseas.
So there you have it – the four main options you have at your disposal if you are looking for the best way to make an international money transfer. There is no right or wrong answer – it is all about finding the best solution for you. Nevertheless, it is fair to say that most people would agree that a cashier check is the least popular option, as it takes too long and is not secure. However, from the following three options, it all depends on what you want from your service. If you are really worried and looking for ultimate security, then you’re probably best off going for a bank. However, online money transfer firms are in their abundance, meaning you can shop around for the best deal and exchange rates, and you have plenty of different services to choose from too. You will also benefit from a cost-efficient service if you go for an FX broker. One thing you certainly should not do is rush your decision. You should get a quote from all of the options you are considering, and you will want to take into account three things when determining the price – the exchange rate, the fee, and the commission. This is the only way to get a true reflection of how much the money transfer is actually going to cost you. Once you have done this, you can then look at how long the transfer would take and whether the company has a good reputation in the industry or not. If you follow this process, you should be able to narrow down your options carefully so that you are able to find the best money transfer option for you. If you are in a rush, there are express options available, as has been touched upon. However, do not let your hastiness force you into a bad decision; you should never use an international money transfer service without doing your research beforehand.