Beat the banks and save money on your overseas transfers
- Credit: Archant
Use a currency broker, such as FC Exchange, to save money on your overseas transfers compared to high street banks ADVERTORIAL FEATURE
For many years banks have been turning a tidy profit from overseas transfers. Most consumers mistakenly use their high street banks to make international payments without understanding that there are alternatives. In fact, it is estimated that 90% of international money transfers go via banks. However, if you want to beat the banks, saving money on your overseas transfers, the best option is to use a Foreign Exchange (FX) broker instead of your high street bank.
Why should I not use a high street bank?
Whether, for one-off payments such as buying or selling an overseas property or regular payments such as pensions, monthly bills, repatriating salary or investment dividends, you will almost always get more for your money by using a foreign exchange broker, such as FC Exchange.
Banks often add a considerable margin to the exchange rates and historically charge a fee for the transfer, usually somewhere between £10 and £40, significantly reducing the amount of foreign currency received. And if you are making regular monthly payments, the fees mount up. So, if you are making regular international transfers, you could save as much as £758 a year on fees alone.
Service is important too. Foreign exchange brokers take the hassle out of money transfers, delivering jargon-free guidance every step of the way and on the best time to make your transfer so that you make the most out of your money and help you navigate dramatic fluctuations in exchange rates.
How do FX brokers manage to offer a better deal?
With larger transfers, the difference between the cheapest and most expensive exchange rates can run into thousands of pounds. FX brokers can save up to 5% compared to the high street banks and also charge a transfer fee that can be anywhere between £0 - £15 for each transfer.
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Also, FX brokers make their money on the difference between the rate they buy currency and the rate they sell currency to the consumer. FX brokers buy billions each year in the ‘wholesale’ foreign exchange markets and so can pass on these savings to the consumer. Currency specialists, only charge around 1%, whereas high street banks will charge as much as 5%. For example, on a €300,000 transfer, you can make a saving of £5,387 or even more compared to using the high street banks.
Probably where FX brokers have the biggest impact is by helping protect consumers against adverse currency movements. Volatile currency markets can result in people becoming exposed to considerable financial risk without even realising it. Consumers can remove this risk by locking into an exchange rate for up to two years into the future with an international payments specialists such as FC Exchange, before transferring the funds. You will then know exactly how much it will cost and how much you will receive.
In short, there are other options to making international transfers that are significantly more cost effective, offer better exchange rates and help protect you against adverse currency market movements, all while providing security similar to the banks.
Start saving money now
Contact FC Exchange, the international money transfer experts, on freephone France 0805 112 180. Alternatively, call our UK head office on +44 (0)20 7989 0000. Or visit www.fcexchange.com