International money transfer plays an important role while you are living abroad. It’s not only about transferring the balance to a particular geographic region but, there are various other reasons for sending money abroad.
You can save a huge amount if you choose an online medium to transfer money overseas rather than a bank or financial establishment.
We can understand that some major or specific reasons are there for transferring money abroad. Like buying a property overseas, paying for tuition fees, divestments, sending money for your family, etc.
So, if you want to send money abroad, keep reading for transferring it successfully overseas.
Important Factors when you Transfer Money Abroad
Before you decide the money-transfer services, you should have a look at the following measures.
- Amount of money you need to send
- Expenses to send money abroad
- When and how often you need to send
- How the person wills to receive the amount
- How long the process would take
So, consider these above-mentioned factors to discover a real deal for you for transferring the money.
Carriers of your Money Overseas
You get three choices when you need to transfer money abroad. They are banks or building society, foreign exchange brokers, and high street transfer firms. Banks are super convenient if you think from the security perspective of your money. Whereas, foreign exchange broking schemes are good when you have to transfer a relatively larger amount.
Now, coming to the transfer firms, they are the fastest if you have no problem with the additional costs. We hope that you are aware that these firms deduct money as sending and receiving fees. So, the easiest way is to use banks to transfer money if you have enough time.
1. Building Society or Bank
If you are thinking to use your bank to transfer the money, then make sure that you have the International Bank Account Number. In addition to this, you require a Bank Identifier Code to make the payment to that particular account.
If you don’t have these details, contact your bank immediately. Also, make sure that the recipient of the money should also possess these two credentials.
Now, let’s check out the pros and cons of choosing a bank for transferring money.
Below are the benefits to send your money through a bank or building society:
- The bank will assist you throughout the transferring process. Otherwise, you can handle the transfers from your regular mobile phone as well.
- The process is way more convenient through banks.
- When a reputed bank is handling the transfer process, you need not worry about the security of your money.
Here are some disadvantages of using this carrier for transferring money overseas:
- The main problem is the speed of transfer as the general transfer takes 4 to 6 business days. Hence, you might need to spend more pennies to avail of a fast transfer that can take 2 business days.
- Bank offers a lower exchange rate for sending money abroad.
2. Foreign Exchange (FX) Brokers
If you have to transfer a lump sum of money to your family living abroad, then the FX broker is a great option. However, choose the deal that matches your necessities.
Let’s check out the pros of using Foreign Exchange brokers.
- FX brokers charge you the minimum when you are transferring a huge amount.
- You can access a great exchange rate through the FX brokers.
- The procedure is considerably faster than banks.
- You can handle regular transfers through FX brokers.
The disadvantages of choosing Foreign Exchange brokers are cited below.
- When you want to use FX brokers to send the money, you have to open an account. Also, you need to pay in the same account. This can consume at most two business days.
- If you have to send a smaller amount of money overseas, possibly you won’t get an effective deal. It may cost you extra money.
- The procedure is not as safe as the procedure conducted by banks.
3. High Street or Online Money Transfer Firm
Why waste time and effort when you can send your money abroad through online money transfer firms? Yes, you can use high street money transfer firms like Western Union to transfer the money to people who need the money immediately.
The advantages of using these online money transfer firms are mentioned below.
- Many of the online firms can deliver cash instantly. Some prefer to deposit the money into the bank account of the recipient.
- You need not open an account necessarily to send money using it. Also, there is no need to show any valid identification proof to transfer a small amount.
- Overall, the process is really fast with them. The transfer can complete within a few minutes.
Well, this scheme has a few cons too. They are:
- The transferring fees may vary from small to large amounts. If you are sending larger amounts, then the fees may increase.
- Additionally, the exchange rate also varies from time to time. It is better to compare the exchange rates among all other online firms.
- The procedure is not so safe as compared to other money transferring options.
Is Sending Money Abroad Safe?
Financial Services Compensation Scheme (FSCS) generally handles the savings account in the UK. if you use banks and building societies to transfer the money, then it is safe and secured through the regulations by FSCS.
But, if you use the online or foreign exchange brokers, then the security is not guaranteed. Besides, FSCS doesn’t cover all these schemes under their norms and Foreign Exchange brokers belong to the Financial Conduct Authority.
So, they have certain rules to get your money back if anything goes wrong. Hence, make sure that you are using that particular FX broker authorized from the Financial Conduct Authority.
How a High Street Money Transfer Process Works?
You can find those high street money transfer firms through advertisements on papers, televisions, etc. A high street agent from the Post Office can introduce you to the service. The agents of the firm will guide you on how to utilize the money transfer service.
To avail of their services, you don’t have to open an account to transfer the money. Just hand over the money to them along with the transfer fees. They will provide you a reference number after making the payment. Thereafter, inform the recipient about the reference number only. The recipient will be able to get the cash using it.
However, you should follow some measures before handing over the cash to them. Please take a look at the transfer wages. You should clarify the mode of receiving the money from the spect of the recipient as well. So, ask them which mode of payment they would prefer to receive the money. They can get instant money by choosing mobile wallet services.
How does Online Money Transfer Work?
Online money transfer might consume a few business days to complete the task. So, consider them when you don’t need to send the money on an urgent basis. You can transfer the money all over the world in a pocket-friendly budget.
But, you have to register the service through your bank account or credit card details. Also, make sure that you acquire an email address along with a stable Internet connection.
Here, you have to find out how the recipient is willing to get the money. Most importantly, please take care of the password that you will use during sending money abroad through online services.
How to Grab the Best Money Transfer Service?
Before you choose the best and trusted service to transfer your money overseas, you should carefully check some points. We have mentioned some critical checkpoints before you reach a conclusion.
- Go through comparison sites. It is better to check out multiple sites rather than checking just one.
- You should check whether the scheme is beneficial for you. Compare the transfer wages of different sites.
- Always, check out if FCA approves the FX broker that you have chosen.
- When you are using any comparison site, make sure that you have switched on all the filters. Some applied filters might cover good deals on money transfer services.
Beware of Frauds
If you find anything doubtful on any online money transfer site, then please don’t choose it. Many people have complained of fraud cases with online money transfer services. Also, don’t get into the trap of scammers who are trying to entice you with attractive offers.
You can spot the scams if you follow the tips mentioned below.
- The deal is too good to exist.
- Try to check if the sites have valid authority.
- Never share your bank details before judging these online sites.
What to do if Anything Goes Wrong While Sending Money Abroad?
While transferring a huge amount of money through some carrier, it can be a headache for many. Regardless, the amount of money, it is about the safety of your money and bank account.
Make sure that you keep every paper associated with the transfer if you have used your bank. If you choose FX brokers, check if the FCA has certified the company. Do extensive research over these carriers before deciding the carriers for sending your money abroad.
What are the Alternatives?
You can avoid the online money transfer schemes by paying through credit and debit cards to shop abroad. This is way more convenient. Also, you should avoid a bank draft for foreign banks or issue UK cheque. This can take more time and money as compared to overseas money transfer carriers.<