Using your bank for an international money transfer might seem an obvious choice as your money is most likely sitting in your bank account. While it may seem convenient to make a transfer through your online bank you are likely to get stung by poor exchange rates and often hefty fees for international payments. This article will show you 5 reasons why making an international transfer online is the smart choice.
1. Avoid high transfer fees
If you’re transferring money from one part of the world to another, your bank likely charges a higher fee than a dedicated money transfer company like Travel FX.
Some banks charge a percentage of your exchanged amount, while others charge a set fee per transaction. Often if the fee is low, the bank will have a much higher exchange rate than you will find with an online transfer provider.
Some banks even charge you twice – a transfer fee for both the sending and receiving bank.
We looked at the exchange rates and transfer fees charged by the UK’s big four banks. Generally, UK banks are charging around 3-4% of your transfer amount. We can cost up to 60% less.
Travel FX keep the fees low and transparent, so you know how much you are paying throughout the process.
2. Get better exchange rates
Exchange rates are in a constant state of change throughout the day. There are many factors to this, from the global economic climate to local politics, which can impact how much a currency is worth.
Banks tend to set their interest rates at the beginning of the day, their rate will factor in enough margin to protect them from fluctuations during the day meaning that it’s usually much more than an online international transfer provider.
For large international money transfers, the exchange rate is the most important factor in terms of costs. Even a small difference in the exchange rate can make a significant difference to the money you receive.
Example: On an international transfer of £75,000, a move in the rate of just 1% up or down, makes a £375 difference to you.
Travel FX update their rates continuously throughout the day in line with the market, meaning you get the best rate we can offer at that time.
If you want to transfer currency when the market hits a certain rate, a Travel FX account allows you to set rate reminders. Enter the rate you hope to transfer your money at and if your rate is reached we will get in touch immediately.
3. Know what you are paying upfront
When making an international transfer with Travel FX we show you the total cost upfront and exactly how much the recipient will receive, there are no hidden fees, charges or surprises.
One of the frustrations when making international payments via your bank, you are not informed of the charges until you have entered all your payment information. At that point, you may feel you’re too far into the process to start over somewhere else and then reluctantly pay the fees.
It also makes it much harder to make an informed decision about whether you are getting a good deal for your money.
4. Online money transfer companies can often undercut the banks as they have far lower overheads.
Unlike banks, we don’t have hundreds of walk-in branches around the country and multiple staff and expenses at each branch. Travel FX is an online service run by our expert team of foreign exchange specialists in our company offices. We keep our overheads low and pass the savings onto you,
5. Transfer your money quicker
Banks are known for making you wait days while they process your transfer request, and a bank’s short hours and multiple holidays could further delay your transfer.
Since we are in the business of exchanging currencies, the wait time is usually much shorter. Your recipient will only have to wait a day or two to receive their payment
Summary
While using your online bank to make transfers may seem convenient, it’s often a lot more costly. Travel FX gives you the best of both worlds, the convenience of an online transaction but with lower fees and better exchange rates than your bank can offer.
See our latest International transfer rates here.
