Tips for Cheapest International Money Transfers: Avoid Hidden Fees

Tips for Cheapest International Money Transfers

Tips for Cheapest International Money Transfers: International money transfers are one of the primary things to consider when you plan to study abroad. Whether you’re sending money to family overseas getting money transferred from India or managing finances abroad, you will always look for the cheapest ways for international money transfer. There are a lot of things to understand like the benefits of wire transfers, the cost of online transfers, etc. 

However, there are always some hidden fees and fluctuating exchange rates which impact the cost of transferring money. There are various factors which you need to understand while transferring money abroad. Let’s understand all those factors in detail and some tips for the cheapest money transfer options. 

Modes of International Money Transfer

You can transfer money to a person staying in a foreign country through various modes. The best and fastest way for international transfer is online transfer of funds. A lot of user-friendly apps are available for international money transfers through which you complete the transactions in minutes. 

Another mode of transferring money abroad is through Bank draft and cheque payments. This mode is usually cheap but takes more time. These days, international wire transfer is one of the most popular modes of sending money abroad. This is the latest and cheapest mode of money transfer attracting affordable transaction fees. Let’s understand some of the factors to be considered while finding the cheapest international money transfer mode.

Also Read: Things to Consider While Transferring Money Abroad

Tips for Cheapest International Money Transfers

Transferring money to another country includes transaction fees and exchange rates which vary depending on the merchants. Online money transfer is fast but comes with a huge transaction fee. Let’s understand some of the important tips through which you will be able to transfer money abroad quickly with affordable transaction costs.

1. Compare Transfer Agents or Merchants

Not all money transfer agents offer low exchange rates and transaction fees. Whenever you are planning to transfer money abroad it is essential to compare the costs offered by different merchants, agents, banks or unions. Always check for merchants that offer competitive exchange rates and lower fees. Popular options include banks, online money transfer platforms like SWIFT, reputed unions like Western Union money transfer etc. or any dedicated international remittance services.

2. Understand Exchange Rates

Have you ever wondered what exactly the exchange rate means and how it fluctuates? The exchange rate is the rate at which a currency of one country will be exchanged for another currency. For example, you have USD 100 and you want to exchange it with Indian currency. So based on the ongoing market rates you will get INR 8325.42. While transferring money abroad you need to understand that exchange rates fluctuate constantly, and they can vary widely between the merchants or banks. In order to avoid unfavourable rates, always check the mid-market exchange rate (the rate banks use when trading among themselves). This can serve as a benchmark to gauge how fair the rate offered by your chosen provider is. 

Also Read: How to Track International Wire Transfer 

3. Choose Local Currency

When you are sending money abroad you should always choose to pay in the local currency of the beneficiary. Some banks and merchants may offer to convert the amount into your currency before sending, but this often comes with an additional fee or less favourable exchange rates. This will ultimately increase your overall transfer cost. Hence, you should always choose the local currency so that you can save money in the long run.

4. Be Mindful of Fees

Always check the entire list of terms and conditions properly. There are some charges that may get overlooked by you and you will end up paying more money towards the transaction fee unnecessarily. There are several things which you need to check and understand very carefully like transfer fees, receiving fees on the recipient’s end, and intermediary bank fees which will be incurred during the transaction. Make sure you understand the total cost of the transfer before proceeding.

5. Consider Transfer Speed

It is very important to understand that the speed of your transfer can impact the overall transfer fee. Faster transfers may come with higher fees and that’s why you do not always choose the online mode of transferring money abroad. Whenever you transfer the money abroad always assess whether a standard transfer time will fulfil your needs. If time permits, choose the more cost-effective option. 

6. Verify Security Measures

Secure transfer is the most important thing in any transaction. Always try to ensure that the bank, merchant or union which you are choosing for the money transfer are following all the strict security protocols. Try to look for industry-standard encryption and authentication measures to protect your financial information during the transfer. Also, keep regular track of the transfer so that it doesn’t get stuck at any point and cause unusual delays.

7. Plan for Large Transfers

If you’re making a substantial international transfer, consider breaking it into smaller, more manageable amounts. Some providers offer better rates or lower fees for smaller transactions. A large amount of money may attract higher transfer fees on both the sender’s and the beneficiary’s end. If possible, transfer the amount abroad in small parts to enjoy the best deals. However, you can also calculate that if you do a certain number of transfers then what cost you are paying and how different it is from the amount incurred in large transactions. 

8. Monitor Exchange Rates

Exchange rates are always fluctuating and you will get a different fee offered by your bank every time you make a money transfer abroad. So it is suggested to keep an eye on currency exchange rate trends. If you notice a lower rate, consider locking it in with a forward contract (if your bank offers this option) to avoid potential future fluctuations.

9. Seek Recommendations

If you are not aware of the cost of money transfer abroad and find it difficult you should always seek some recommendations from friends or relatives who have performed such transactions. They might recommend the best ways and the best merchants or banks for international money transfers. Personal experiences always provide valuable insights into what exactly you need to do to get the transaction done. 

10. Read Reviews and Check Ratings

You will find a lot of unions and banks which have a good reputation in the market in the context of international money transfers. Every other bank or union says that they offer the cheapest money transfer services. In order to make the right decision always check online reviews and ratings which will help you understand the reliability and customer satisfaction of different money transfer services. Look for services with positive feedback and a good track record.

FAQs

Which is the cheapest mode for international money transfers?

These days wire transfer is believed to be the most efficient and cheap mode of international money transfer.

How can I check the exchange rates of different countries?

You can simply check on Google. A lot of authorized financial websites like moneycontrol.com, Paytm etc show exchange rate data.

Can I exchange my currency at the airport?

At international airports, you can easily find a money exchange centre. However, their charges are comparatively high.

This was all about the Tips for Cheapest International Money Transfers. In order to make the cheapest money transfers abroad you should always research, compare, and carefully choose your options. With the right approach, you can ensure that your hard-earned money reaches its beneficiary without unnecessary expenses.

To know more about the money transfer services, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience. Follow our social media handles on Twitter, LinkedIn and Instagram

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About Shekhar Suman

Shekhar is a versatile writer with a passion for sharing knowledge and creativity. With expertise in crafting informative blogs on study abroad and finance, Shekhar helps readers navigate the complexities of education and financial planning. Most of his writings blend the practicality of finance and the beauty of language, making a meaningful impact in both spheres. Beyond his professional pursuits, he finds solace in the writing Shayari.

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