Today’s globalised world is a place where currency transfers have grown into routine for the vast majority of people. Reasons vary from sending money to relatives, to moving or buying property abroad, to financing the activities of businesses of all kinds. While demand for the service is growing, so is supply. Therefore, it is time to consider currency fluctuations in the cost of the transfer itself.
First of all, anybody who wants to move funds abroad will have to buy the destination currency or convert his home currency into it. Hence, you automatically come under the sway of currency exchange rates and currency transfer fees, and have to examine very carefully not only the current exchange rates but also all applicable charges and fees involved in the transfer.
Calculating the cost of the transfer and all affiliated expenses could be an arduous task so a good approach to the problem is to consult a currency transfer expert. Many banks charge a high commission on money transfers abroad plus they offer exchange rates, which not always reflect the actual market situation. Thus, a transfer of, say, $10,000 could result in losing several hundred U.S. dollars after paying all applicable fees and taxes, and converting your dollars in the destination currency.
You cannot avoid fees and/or commissions but can minimise them by selecting a reliable service provider which offers reasonable prices for currency conversions and transfers. As mentioned above, high street banks provide reliable solutions but they cost dear. The same applies to most of the high street money transfer agencies so a possible solution is to look for a currency transfer agency specialising in currency exchange and transfer operations.
As a matter of fact, these types of companies operate in a way similar to that of large banks and money transfer companies but they take advantage of the ever fluctuating exchange rates. In the past couple of years alone, the value of the British pound against the euro fluctuated by 30%, and only an expert is able not to fall victim of currency fluctuations on such a volatile market. Currency exchange companies, also called Forex companies, trade on the international financial markets purchasing and selling large volumes of different currencies and diversify the risks of bad currency exposure, making good profit margins. This way they can offer their clients currency exchange rates close to the market prices, while most banks and money transfer companies will offer you a rate, which is on average 2-3% lower than the current market exchange rates.
Another advantage of using currency specialists is that most of them provide online services and some of them even offer fixed exchange rates for a particular period of time, which is your insurance against future currency fluctuations. However, you should remember that using the services of such a company requires a bank account, too, and is also subject to all applicable regulations. Money transfer companies are regulated companies as well but they are a good choice if you send several hundred dollars to a relative abroad. The transfer of larger sums definitely requires the services of a bank specialist or a currency transfer expert, and it is up to you to decide which service is better, more advantageous and less costly.