Sending money abroad can be an expensive endeavour if you rely solely on your bank. Fortunately, there are more cost-effective options available through online specialist currency transfer firms. These firms typically offer better exchange rates, resulting in significant savings for your international money transfers. To ensure a smooth transaction, it’s essential to understand how these transfers work and how your funds are protected.
An international money transfer allows you to move money from your UK account to an account in another country. However, it’s important to note that fees and charges are involved to cover the costs incurred by the transfer company. These costs consist of a transfer fee, which can be a flat fee or a percentage of the transfer amount, and the exchange rate, which is the hidden charge that determines how much foreign currency you’ll receive for your pound sterling.
To compare different providers effectively, ask them this crucial question: “After all charges, how many euros/yen/dollars, etc., will I get for my pound sterling?” While some providers may advertise themselves as fee-free, they often compensate by offering less favourable exchange rates. To get an accurate comparison, make sure to inquire about the exchange rate at the same time you inquire about the fees.
Once you initiate the transfer, the arrival time depends on the method used and the destination country. While instant transfers are available, they often come with higher costs. Standard transfers typically take a few days to reach the recipient. Keep in mind that in the unfortunate event of a transfer company going bankrupt, there’s no guarantee of recovering your funds. Unlike the protection scheme for UK savings accounts, foreign exchange money transfer companies operate differently.
How to ensure a safe money transfer?
Authorized firms, regulated by the Financial Conduct Authority (FCA), are required to separate your money from their own funds by the end of each business day. This safeguarding practice ensures that, in case of financial difficulty, you have a higher chance of retrieving your funds. However, the process may take time, and there’s no specified timescale for compensation.
It’s important to note that firms registered only with the FCA offer no safeguards for your money. Therefore, it’s advisable to stick to authorized firms that follow the proper safeguarding protocols. To check a company’s regulatory status, search for its name on the FCA register.
Hence, sending money overseas can be made more affordable by utilizing online specialist currency transfer firms. Comparing providers based on the total amount of foreign currency you’ll receive for your pounds is crucial. Additionally, understanding the safeguards offered by authorized firms can provide some reassurance regarding the protection of your funds. By being informed and proactive, you can ensure that your international money transfers are cost-effective and secure. Stay in tune with Fly Finance News Desk to get regular updates about study abroad loans, forex, and international student account.
