There are a number of companies offering to transfer money online, but the cost can vary widely.
Whether you need to pay off a vacation home mortgage abroad, conduct cross-border business, or pay for personal goods or services, these fee and exchange rate variations can add up to thousands of dollars. pounds sterling to your overall costs.
Here we take a look at the best international money transfer options and how to access them.
Types of international money transfer services
With a range of services at your disposal, a comparison of international money transfers allows you to narrow down the choices.
For years, it was believed that the big banks offered the best international money transfer services. Most people had an existing relationship with at least one main street bank, and the alternative options were limited. But banks are usually not the cheapest way to transfer money internationally.
Most charge a fee of up to £ 30 to transfer money overseas, and they often inflate their exchange rates, so transfers cost you more. In addition to these expenses, the receiving bank abroad may also take a reduction – an additional cost that often is not fully disclosed before the transfer.
• Money transfer companies
There are a number of companies offering to send your money overseas, and many have physical stores on Main Street or at airport terminals, as well as an online money transfer service.
Not all of these businesses are created equal. Some claim to offer “commission-free” transfers, but make a profit by factoring in a large margin in the exchange rate, which means higher costs for you.
If you need to make an international money transfer online, consider hiring a currency specialist. Look for one that doesn’t charge a transfer fee and offers competitive rates that closely follow the market. Many specialist foreign exchange services do large volumes of business and therefore can afford to offer the most competitive rates, saving you money. Some currency specialists also offer access to experts who can walk you through the process.
How much money can you transfer online?
There are no official limits on international money transfer, but care should be taken when sending large sums abroad. There is no compensation system for online money transfers, so if you send money through a business and it collapses before you complete your payment, you may not not get it back.
So what’s a safe way to transfer money internationally? When choosing an international money transfer company, look at how they are regulated. Companies authorized by the Financial Conduct Authority (FCA) are required to separate your relevant funds from theirs in separate customer bank accounts. This provides a level of protection for your money in the event of a collapse. Other smaller companies are simply registered with the FCA and are not required to put the same guarantees in place.
How long does it take to transfer money online?
One of the most frequently asked questions is the duration of an international money transfer. The response can range from a few minutes to five days or more, depending on the service you choose and where you are sending your money.
In most cases, a foreign currency transfer will take a few days to clear, but if you need to meet a payment deadline, always check with your company first. You may be able to pay a fee to move your money faster if needed.
Instant transfers are available but they come at a steep price, so it’s best to only use them in an emergency. Likewise, an international same-day money transfer can be convenient, but the added cost could outweigh the benefits, especially if you’re moving small amounts.
Using an international money transfer app can speed up the process, especially if you send money regularly. Some companies allow you to schedule payments in advance, which makes it easier to schedule payment deadlines.
How much does a money transfer abroad cost?
International money transfer fees vary widely. Some services offer free transfers, while others charge for each transaction. In some cases, the bank or transfer service receiving the money charges additional fees. Hidden fees can also be added to the exchange rate calculation, which means you get less foreign currency for your pound sterling.
When moving your money, look for free transfers and the best exchange rate you can find. This will help you get the maximum amount of foreign currency after all fees and charges are removed.
Reasons to transfer money online
There are countless reasons why you might need to transfer money overseas, including:
- International real estate purchase
- Mortgage repayments abroad
- Timeshare commitments
- Destination wedding or other events
- Expenses for children studying abroad
- International purchases
- Cross-border commercial payments
How to transfer money online
Telegraph Media Group’s international money transfer service allows you to send money in over 120 currencies around the world without any transfer fees and at great exchange rates.
Our partnership with currency specialist moneycorp keeps your costs low and gives you access to currency experts who can advise you on how to get the most from your transfers.
You will benefit from:
- No transfer fees
- Fast online money transfer available 24/7
- Separate customer bank accounts to protect your money
- Personalized advice from currency experts
- Open an account today with Telegraph Media Group International Money Transfers to take advantage of competitive exchange rates, free of transfer fees.
The above article was created for Telegraph Financial Solutions, a member of The Telegraph Media Group. For more information on Telegraph Financial Solutions, click here.
moneycorp is a trade name of TTT Moneycorp Limited which is authorized by the Financial Conduct Authority under the Payment Services Regulation 2017 (reference number 308919) for the provision of payment services. All client funds are kept in separate bank accounts.
Information correct at date of publication.