We are not new to thousands of overseas workers who break their backs just to send money back home. And we also can’t deny the growing number of businesses sending money to freelancers and outsourcing companies abroad. As big enterprises expand internationally, they also have to pay for licenses, payrolls, and operations. Decades ago, sending money is risky. You can’t even track it in real time so you just hope it will not sink in the Pacific Ocean.
Now, you can safely transfer funds within minutes. Numerous cheap cross-border money transfer services sprouted as the demand increases.
But here at Ratecompare, we believe that low service fees it not always the best option when making cross border transfers. This is why we have listed the top international money transfer services.
Every dollar you make is as important as $1,000,000. You have worked hard for it. So it is only fair to get the most out of it. Unfortunately, if you are not careful enough, you could end up paying more than you should.
Matt Oppenheimer, CEO of money transfer service Remitly, revealed that traditional remittance companies have pocketed billions of dollars in service fees from hard-working immigrants who send money to their loved ones. On the other hand, banks also offer international money transfer but it is often more expensive.
To find the best international money transfer company, you have to understand and compare the transfer fees, exchange rates, acceptable payment method, transfer limits, and turnaround time. This guide will help you find the international money transfer services that will meet your needs and priorities at the most reasonable price.
Each money transfer company has its own fees and features. It is difficult to differentiate each if you don’t compare them side-by-side. So here are the factors you have to look for when comparing
Though many think that this is a major factor to consider, this must not be your priority.
The truth is, the transfer fee is not the sole way money transfer companies earn. There would be times when the money transfer is cheap, but the exchange rate is way off from the mid-market rate. Some providers have a higher transfer fee, but the exchange rate is highly competitive.
The transfer limit is the maximum amount that the provider lets you send at a certain period of time. In most cases, banks and money transfer services have higher limits but this depends on the nature of transfer and the location of the recipients.
Consider this: TransferWise has a transfer limit of $1 million per transfer if you are sending money to the US. On the other hand, the limit will be different if you send money from the US to another country.
The mid-market rate is the midpoint of the buy and sell prices of two currencies. It is considered as the most transparent and accurate foreign currency exchange rate since it reflects the real-time movements in the currency markets. This is the same rate the bank uses when transaction with other banks.
It is easy to find the mid-market rate. Simply search it on Google and official foreign exchange sites.
Now, if you compare the exchange rate in various money transfer companies, you will immediately notice that they have different exchange rates. No provider will show the exact same value as the mid-market rate. This is because they take the live mid-market rate then adjust it a bit without telling you.
The difference between the mid-market rate and the money transfer company’s exchange rate will be an additional earning to the provider.
Shorter Turnaround Time
Do you need to make an instant transfer or you could wait a bit? Some providers offer an immediate money transfer at a slightly higher price while others take a few days to process your transfer.
Compare how many currencies does a money transfer company support and if your currency is available.
Flexible Payment and Receiving Options
Check out the available payment options too. While most money transfer companies accept bank transfers, not all accept credit or debit cards.
On the other hand, make sure that your recipient can receive the money in the most convenient way for them. Some provider let receivers collect cash through pick up while others also have mobile wallet options.
Do you regularly send funds or are you willing to wait for a better exchange rate? Some companies offer the convenience of scheduling your money transfers. There are some providers who also lets you set your preferred exchange rate and only send your money if it is your required rate. Take a look at these add on services and how much could be the additional fees.
If something happens to your transferred funds, you will naturally want a customer support agent to help you smoothen things out. Some services offer chat support in addition to email and phone support. Keep in mind that if a money transfer company is located overseas, customer support may only be responsive during its business hours. So it is best to choose a provider with 24/7 customer service.
Don’t forget to read reviews and feedback on the services of previous customers. You will get an idea of how the provider treats its customers and what to expect.
Only use an international money transfer service that uses bank-level encryption to keep your personal and financial data safe. These providers must always meet global standards when it comes to security.
Here at Ratecompare, we only compare international money transfer services which are licensed and regulated by various financial regulatory agencies such as FCA (Financial Conduct Authority) in the UK, FinCEN (Financial Crimes Enforcement Network) in the USA and ASIC (Australia Securities and Investments Commission) in Australia.
Among the dozens of international money transfer services, there is no one that we can call “the best among the best.” It’s because it will still boil down to your needs, how much you want to send, where are you sending your funds, how soon you want it to be received, and the exchange rate at a time you are transferring your money.
Truly, the best way is to always take the time to compare every time you send money abroad. And keep these tips in mind
Check your transfer currency’s mid-market rate.
As discussed above, the mid-market rate is the rate banks and transfer services use to trade currencies among themselves. This will be your baseline when comparing the exchange rate offered by the money transfer companies. The best exchange rate is the one closest to the mid-market rate.
Send large transfers.
Many international money transfer services have discounts if you send a higher amount. There are times when the fees are even waived for large transfers.
Use forward contracts and limit orders.
If you are sending money regularly, you will be able to save more with a forward contract and limit order. A forward contract allows you to transfer money for the next 12 months at an exchange rate that you agree now. Regardless of the increase in exchange rate, your transfer will have the exchange rate you have chosen.
On the other hand, a limit order means the provider will wait for your preferred exchange rate before transferring your money.
Send same-currency transfers.
Depending on the situation, it is sometimes cheaper to send money in US dollars to your recipient. Your recipient could have a cheaper means to have the dollar converted into his or her currency.
Consider the purpose of your transfer.
Are you sending money to your family for their immediate needs or are you a business owner who needs to pay for goods and services? If your purpose is to send money as soon as possible, then you have to choose the provider that can make a transfer within minutes. But it does not mean that it will be more expensive, you just need a few minutes to compare your options with us.
On the other hand, if you can wait for a day to a week, you can take your time and find a money transfer company that offers a reasonable fee and exchange rate.
Get to know the latest about the best money transfer services to make better-balanced choices every time you send money abroad.
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