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How to Save Big on International Money Transfers

Moneymagpie Team 12th Jun 2024 No Comments

Reading Time: 4 minutes

Nowadays, cross-border payments have become common for millions of people. Whether it is to support loved ones back home, to pay for services in another country, or to conduct business internationally, the convenience of transferring funds across borders is vital. However, the fees charged for these transfers can be quite high and reduce the amount of money that the recipient gets. This article will give you the best tips and measures that you can take to ensure that you reduce the cost of transferring money across international borders.

Charges Associated with Money Transfers

The first step to saving money on international transfers is knowing the various costs incurred in the process. Here’s a breakdown of the main expenses:

Exchange Rates

Exchange rates are an important factor affecting the amount of money a recipient will receive. The exchange rate refers to the price of one country’s currency in terms of the other. It is dynamic and depends on various factors such as economic conditions, geopolitical factors, and market requirements. The exchange rate that one gets when transferring money internationally goes a long way in determining the amount the recipient gets.

However, the rates provided by banks and transfer services are usually not the same as the mid-market rate, which is the rate at which banks exchange currencies with each other. This rate is also referred to as the interbank rate and is considered the most reasonable rate used in currency trading.

Banks and money transfer services charge a fee, which is the difference between the mid-market rate and the rate they offer to the clients. This markup can be quite different across different providers. For instance, a bank may charge an additional 2-5% on the mid-market rate, while a money transfer service provider may charge a lower margin, thus making the transfer cheaper.

Also, some providers may not make it easy to see their exchange rate margin, so the customer may not know how much they are charged for the transfer. This lack of transparency can lead to high costs and less money received. As such, it is advisable to compare exchange rates between different providers and go for the one that has the least markup on the exchange rate.

Transfer Fees
Transfer fees are another critical factor that cannot be overlooked, as they can differ depending on the service provider and the sum of money transferred. They are generally of two types:

Fixed – a fee that is paid for each transaction.
Percentage-based – a certain proportion of the total sum transferred.

Hidden Costs
They can sometimes lead to additional expenses you might not have planned for during your transfer. These might include:

Receiving Fees – charges levied by the recipient’s bank.
Intermediary Bank Fees – charges levied by the middleman banks involved in the transfer.

It is crucial to be aware of these hidden costs and consider them when making a decision.

Selecting the Appropriate Means of Transfer

It is, therefore, important to determine the most economical means of transfer. Here’s a comparison of the main options:

Banks

Pros: recognition and convenience for regular consumers.
Cons: higher fees and worse exchange rates.

Dedicated Money Transfer Services

Pros: better rates and lower fees.
Cons: they may involve creating an account or providing more information.

Online Money Transfer Services

Online transfer services have changed the way we transfer money across borders. Some of the examples are BOSS Revolution, PayPal, and Western Union.

BOSS Revolution: This platform usually provides more favorable rates and lower charges than conventional banks. Also, BOSS Revolution has advantages such as fast transfer rates, strong security features, and dependability. Visit the site to get more information about the company and the ways to reduce the cost of your transfer.

Advantages of Online Transfer Services

Transfer Speed
Transfers are typically done within minutes or hours, compared to conventional banks, which might require days to complete the procedure.

Security
These platforms employ high-level encryption and security measures, ensuring the safety of your funds.

Reliability
You can be sure your money will get to its destination safely thanks to 24/7 customer support and real-time tracking.

How to Save on Transfer Costs

Here are some practical tips to help you save on your next international money transfer:

Compare Rates and Fees
It is advisable to always compare the exchange rates and fees charged by different providers before making a transfer.

Use Transfer Services with Lower Fees
For instance, platforms such as BOSS Revolution charge lower fees and provide better exchange rates compared to conventional banks.

Avoid Hidden Fees
Watch out for implicit charges, including receiving and intermediary bank charges, and add them to your estimates.

Plan Your Transfers
If possible, arrange your transfers in advance to benefit from better exchange rates.

Use Promotions and Discounts
Most transfer services have special offers and discounts for new customers or app users.

Conclusion

Understanding how fees work as well as selecting a suitable service provider plays a crucial role in making informed decisions when transferring money internationally. Comparing rates, avoiding hidden costs, and using services such as BOSS Revolution will help minimize transaction costs. Thus, it’s highly recommended to systematically review your habitual money transfer practices and consider various suggestions to save more on subsequent transfers. This way, you guarantee that a larger amount of your money will get to the intended recipient regardless of their location.

Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.

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Jasmine Birtles

Your money-making expert. Financial journalist, TV and radio personality.

Jasmine Birtles

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