It is now easier than ever to travel and see the world. Though credit cards are now more readily available than ever, visiting another country means you will need at least a bit of local currency to get around. The commission to be made for transferring your money abroad can be quite, and the competition to have the most attractive currency offers is heating up. What was once a dominated industry, with the likes of Western Union and other established banks being first choice, is now bustling with fintech innovation and competition. There are some front runners, such as TransferWise, WorldRemit and Revolut, who are establishing themselves as quick, cheap and easy, but more start-ups are always appearing in the niche. But finding the best money transfer company to change your pounds and pennies for a Euro’s, yens and other foreign currency is not easy. So what do you need to be aware of before you take out any money transfer company? What are the reasons for wanting to transfer money abroad or wanting your hands on some foreign currency? And how does it work? These questions are all questions that we would like to try and answer. Continue reading to learn a bit more about dealing with foreign money.
The Risks of Foreign Exchange
Of course, you need to be sure that you are dealing with a reliable and trustworthy company to transfer your money or exchange of for foreign cash. You should check reviews to see how people think about a company or ask the opinion of someone you know who has dealt with a money transfer company. That way you at least have some idea of what you can expect when you ask them to transfer or exchange your money. After all, you don’t want your money to get lost somewhere in the process. Another thing that you should keep in mind is the fact that most companies charge a fee for exchanging your money for another currency. And even if there is seemingly no or very little fee, the company could be simply giving you a bad price for the exchange and then pocketing the rest. It is definitely worth your time to compare the choice of money transfer companies. The best choice also changed between currencies, so try and avoid deciding on one company for all of your transfers.
Reasons for International Money Transfer
There are various reasons why you might want to get your hands on some foreign currency. Maybe you go on holiday and want to have some local currency to buy some food, do some groceries, shopping for souvenirs or making some other payments. Some sightseeing hotspots only accept local currency. And having some local currency is necessary in case of an emergency. There are also various reasons why you might want to make international bank payments. Maybe there are some relatives of friends living abroad and you want to send them some money for their birthday or buy something on a local webstore for them. Maybe you do business with a company on the other side of the world and you want to pay them in their own currency. And perhaps you are migrating and want to transfer all of your savings to your new country of residence to buy a house there. There are companies that specialise in each situation, and the best rates may differ depending on the amount you are transferring.
Does Money Transfer Work?
International money transfer can work just as easily as a regular bank payment. You create an account at the website of a money transfer company and put some money on the account. Then, you can make a payment just like you do any other payment. The only difference is that the money transfer company will show you the exchange rate so you can take a look at their fees before you finalise the payment
So whenever you plan to go on a permanent or temporary international trip, first find the best money transfer company available!