International Money Transfer

International Money Transfer
By Dave Lympany -
International Money transfer is an essential part of your international move and/or business,

which, if handled correctly can boost your bottom line or settling funds dramatically. Anybody

looking to move overseas, send money to family or conduct business with an overseas company will

need to purchase or transact in the destination currency. In order to complete any property

acquisition ahead of your move or just simply transfer your existing assets over to your new

country, the method you choose will make a big difference.

In today's volatile currency markets, a small change in the currency rates, coupled with the high

commission charged by most banks can make an enormous difference in the net currency amount

received when converting your currency, you are placing what is possibly your life savings into

someone else’s hands. Depending on the size of transaction, this could make a tangible difference

of several thousand dollars; money you may prefer to put towards starting your new life! This can

leave you exposed to the market fluctuations and could give you a handsome boost to your funds or

put a big hole in your budget.


To start with you have several choices how you move your money:

1. Use your normal Bank and accept the charges and the fact that you may not be talking to an

expert when you discuss the transfer.
2. Use a specialist international currency transfer company
3. Use a normal money transfer agent (again accept the charges)
4. Buy a huge amount of traveler’s cheques or take cash (not recommended)!!!

Lets discuss each one with a bit more detail:

Possibly the most important piece of advice I was given when emigrating was that the high street

banks were not the best people to entrust with your money transfer overseas. How do you know that

the bank teller has any idea what you are talking about (not being belittling but it probably

isn’t an everyday service)? They charge commissions, transfer fees and then to cap it all off they

give a reduced exchange rate.

Essentially, the high street money transfer agencies are similar to the banks. They may know more

about the transactions but will hit you with commissions, charges and not the best rates.

Travellers cheques and cash speak for themselves – don’t do it! They are easily lost/stolen, some

countries only allow a limited amount of cash to be carried into the country and in the case of

travelers cheques, you may have

to pay to buy them and then to cash them in. Just plain don’t do it!!!!

Last, but not least, it’s the international currency transfer companies. I had no idea that

international currency transfer specialists even existed, never mind the exceptional services on

offer.

Naturally, securing the very best rate of exchange becomes all important. There are several money

transfer companies that offer an alternative to the banks – in fact “alternative” is too weak,

they outclass the banks by a mile! When we first heard about the services on offer it really did

seem to be too good to be true and we were very skeptical. We thoroughly researched the major high

street banks in the UK and the rates they were offering (adding the fees and commissions!) and

then compared to the service we were offered. Again, there had to be a catch.

The transfer company had no commissions, transfer fees and also gave a rate that was close to 3

cents to the pound better than the banks. All the funds would be transferred electronically to the

bank account of our choice normally within 2 working days. We were even offered a choice of

payment methods which included direct debits/debit cards/electronic wire transfers and the ability

to “book” a rate in advance for a small deposit and then pay the balance prior to the contracted

transfer date.

We had to find out how these people could offer such a service so quite bluntly asked. The answer

was very simple. This was a dedicated, specialist company that dealt on the Forex markets in large

volumes – this meant that there would be a low profit margin on each individual deal but the

overall volume made it worth while. Because they are a specialist company, they could pass on the

savings to their customers and the use of modern, electronic transfers ensured the costs were low

with no need to pass them on to us! A true Win-Win situation.

The other added bonus is that these people are dedicated foreign exchange experts who research the

markets and accurately forecast the trends and can advise action accordingly. If it makes sense to

“book” a rate for settlement up to 2 years ahead then that will be recommended – you pay a deposit

and commit to the deal and then they buy the currency at the agreed rate of the day. They hold the

currency on your behalf and then at the agreed date you pay the balance and the money is

transferred. This protects you against fluctuations and allows you to budget accurately.
The author immigrated to Canada in 2003 and has constructed a free information website

www.onestopimmigration-canada.com about Canadian Immigration and life in Canada based on his

family’s experiences.