Top 5 Ways to Save on International Money Transfers

1. Compare Transfer Services to Get the Best Deal

Many people stick to using their bank for international bank transfers, assuming it’s the easiest and safest method. However, banks typically charge high fees and offer less favorable exchange rates compared to specialized money transfer services. You can often save a lot by comparing different platforms and choosing the one that suits your needs.

Use RemitFinder for Quick Comparisons

To make comparing transfer services easier, tools like RemitFinder are incredibly helpful. RemitFinder is a free platform that allows you to compare different money transfer services in one place. It provides real-time data on exchange rates, fees, and transfer times across various platforms, helping you choose the best option for your specific transfer.

How RemitFinder Works:

• Real-Time Comparisons: Enter the amount you want to send and the currency you’re transferring. RemitFinder shows a list of available services, their fees, and the exchange rates they offer.
• Transparent Fees: This platform highlights all fees upfront, so you know exactly how much you’re paying.
• Wide Range of Providers: It covers many popular services, including Wise, WorldRemit, and Cambridge Currencies, giving you a broad selection to choose from.

Using RemitFinder ensures you get the best deal on your transfer, saving both time and money.

Top Money Transfer Services to Compare:

• Wise (formerly TransferWise): Known for transparent fees and mid-market exchange rates, Wise is a popular choice for those seeking the best way to send money internationally. They have a user-friendly platform and competitive rates.
• Cambridge Currencies: This service is excellent for large transfers, offering low margins on exchange rates and no transfer limits. It’s a great option for businesses making bulk payments abroad. Click here for site
• WorldRemit: Ideal for smaller amounts and known for low fees, WorldRemit operates in over 150 countries, making it perfect for those sending smaller transfers frequently.

Taking the time to compare services can make a massive difference in the amount of money you send and receive. Many of these platforms offer calculators to show the true cost of sending money abroad, so you can make an informed decision.

2. Avoid Using Traditional Banks for International Transfers

When sending money overseas, banks tend to be the most expensive option. They often charge high flat fees on top of offering poor exchange rates, meaning you lose money both on fees and currency conversion.

Why Banks Are Expensive:

• High Flat Fees: Traditional banks often charge a fixed fee for international transfers, which can range from £10 to £40 or more, depending on the bank and country.
• Unfavorable Exchange Rates: Banks typically add a significant markup to the exchange rate, meaning you’re getting less currency for your money compared to using specialized services.
• Slow Transfer Speeds: Bank transfers can take several days, particularly when multiple intermediary banks are involved.

In contrast, services like Wise, PayPal, and Revolut offer far more competitive fees and exchange rates. These services are designed for fast, affordable, and secure international wire transfers, allowing you to get more value for your money.

3. Send Larger Amounts Less Frequently to Save on Fees

One of the simplest ways to cut down on costs when sending money internationally is by making larger, less frequent transfers. Many services charge a flat fee per transaction, which can add up quickly if you’re making multiple small transfers. By bundling your payments, you can avoid paying multiple fees.

Advantages of Larger Transfers:

• Lower Fees per Transaction: Many services offer a lower fee for larger sums or percentage-based fees that decrease as the amount goes up.
• Better Exchange Rates: Some money transfer services give more favorable exchange rates for larger amounts, which can further increase your savings.

For businesses, using a bulk transfer service that allows you to send multiple payments at once can reduce administrative costs and fees. Regularly making small transfers adds up over time, so it’s worth considering larger transfers whenever possible.

4. Set Up Currency Exchange Alerts

Exchange rates can fluctuate significantly, and even a small change can make a big difference when sending large sums. Many transfer services allow you to set up alerts that notify you when the exchange rate reaches your desired level. This ensures you transfer your money at the optimal time.

How to Use Exchange Rate Alerts:

• Wise: Wise offers a feature that allows you to set a preferred exchange rate. Once the rate is reached, you’ll receive a notification, helping you transfer when it’s most cost-effective.
• Cambridge Currencies: For larger business transfers, CC allows users to set up exchange rate alerts, ensuring you lock in a favourable rate.
• Xe: Another service offering rate alerts, Xe allows you to keep an eye on currency movements and send money when it’s advantageous.

Setting up these alerts can help you avoid making transfers during periods of unfavorable exchange rates, saving you a considerable amount in the long run.

5. Be Aware of Hidden Fees

When making international money transfers, hidden fees can significantly increase the cost of your transaction. These fees may come from intermediary banks, currency conversion margins, or charges at the receiving bank. To avoid unnecessary costs, always check for hidden fees before committing to a transfer service.

Common Hidden Fees to Watch Out For:

• Intermediary Bank Fees: If your transfer involves multiple banks (which is common in international wire transfers), intermediary banks may deduct fees along the way.
• Receiving Bank Fees: Some banks charge recipients a fee for receiving money from abroad. Check with the recipient’s bank to see if this applies.
• Currency Conversion Fees: Even if a transfer service offers low upfront fees, they may add a significant margin to the exchange rate. Always check the exchange rate offered and compare it to the mid-market rate.

To avoid these costs, choose services like Wise or CC, which have transparent fee structures. They show you all fees upfront, so you know exactly how much you’re paying.

Extra Tip: Consider Using Forward Contracts for Large Transfers

If you’re making a significant transfer for a property purchase, business deal, or investment, you may want to consider a forward contract. This allows you to lock in a current exchange rate for a transfer you plan to make in the future. It’s an effective way to protect against exchange rate fluctuations, especially when transferring large sums.

Advantages of Forward Contracts:

• Rate Locking: You’ll lock in a favorable rate, avoiding potential losses due to exchange rate fluctuations.
• Ideal for Businesses: Businesses making regular payments overseas can use forward contracts to stabilize costs, especially if they rely on a specific budget.

Currency brokers and some international payment platforms offer forward contracts, making them a valuable option for businesses and individuals alike.

By implementing these five strategies, you can ensure that you’re getting the best deal every time you send money abroad. From comparing transfer services to setting up exchange rate alerts, each step helps you save both time and money.

And if you’re looking for more personalized advice on your international transfers, Cambridge Currencies is here to help you find the most cost-effective solutions for your needs. Start exploring your options today, and keep more of your money in your hands with every transfer.