Expats save on international money transfers

Expats use brokers to save money on international money transfers

Moving abroad is a huge undertaking for anyone and often a costly one. You can’t avoid spending your hard earned cash on a new house or other essentials, but you can avoid paying too much on international money payments.

As you are looking to move to another country there’s a good chance that you will need to convert your pounds into the currency of your chosen new home. These exchange rates are highly volatile, often moving upwards on downwards depending on the confidence of the foreign exchange markets.

The value of a currency in the foreign exchange market is determined by a large number of factors that can be put into 3 main categories: economic factors; political conditions; and market psychology. A specialist currency broker will be aware of these factors and will do their best to try and give you the best rates possible.

You may think that your bank will provide you with the best deal on the exchange rate, a mistake that many expats unfortunately make. For high value transfers, the difference between the cheapest and most expensive ways of sending money can run into thousands of pounds. Most High Street banks charge about 4% more to exchange your money than a currency specialist and could charge a transfer fee that can be anywhere between £15 – £40 for each transfer.

So for an overseas property purchase of £100,000 that’s a massive £4,000 difference!

Currency specialists however, make their money on the difference between the rate it buys the currency and the rate it offers the consumer. This is a premium on the interbank rate, which is the rate at which banks buy and sell to each other. For currency specialists this is around 1%, whereas High Street banks will charge you about 4% or even more.

The value of a currency in the foreign exchange market is determined by a large number of factors that can be put into 3 main categories: economic factors; political conditions; and market psychology. A specialist currency broker will be aware of these factors and will do their best to try and give you the best rates possible.

Advantages of using a currency broker

  • They offer lower transfer fees than many banks.
  • They can transfer your money more quickly than many banks.
  • They do not charge commission.
  • They can protect you from adverse currency movements, allowing you to lock in to favourable exchange rates, thereby fixing exchange rates for settlement in the future.

Overall a specialist currency exchange broker is the way to go if you want to get the best value from your international money transfers, making them a far better option than the high street banks.

By following these tips your banking abroad should be made a lot simpler!

The Expat Hub
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