How to choose the best alternative of sending money abroad?
When you want to make an international transfer, firstly, you need to search your options. There are three main categories that you should choose from: transfer firms, banks and FXs.
Questions you should ask yourself before deciding:
- Which country do I want to send money to?
- How much money do I want to send?
- How quick do I need the transfer at the recipient’s account?
- Am I making a one-time transfer or do I need a regular cash flow?
If you need to make the regular payments outside your country, the best option for you is creating a bank account abroad in the same bank that you already have the account in. Normally banks have bad exchange rates, charge a lot for making international transfers and it takes a lot of time before the recipient will get the money.
But, banks are the safest possible way of wiring money, because they are protected in case they go bust. So if you need to make regular transfers, it is better when your money are safe all the time.
So to avoid the fees connected with interbank transfers, just create the account in the overseas branch of your domestic bank. You may even be able to connect the accounts for example via app and have an inquiry to your funds all the time.
One big transfer
If you need to make a large transfer you should go with foreign exchange brokers (FX). They are not suitable for small amounts because you would be charged with big additional fees, but for big sums they are just perfect. FX brokers will probably send your money within a day or two, for no fee and at a convenient exchange rate.
If you need the money to be at the recipient’s account immediately, your best option is an online or high street money transfer firm. These are the firms where you create an account on the website (sometimes it may even not be necessary), enter the account number of the receiver and everything else is taken care of. Big advantage here is the time, because the recipient can receive the money even in a few minutes.
Best way to find the suitable transfer firm is to go through some comparisons that catalogues the firms available on the market. Always remember to check more than one ranking.
To learn more and do some basic research on what features are offered by particular remittance platform you can check out this TransferWise review, which covers how to use this service, transaciton costs and shows both advantages and disadvantages of this platofrm.