Do you own property overseas? Do you work abroad? Do you make regular international money transfers for a pension or mortgage? If so, then this step by step guide provides you with all the essential information which you need to have at your fingertips in order to understand how to get the most out of your international money transfers. Be careful to do you research diligently, because if you don’t, you could end up paying over the odds when making your international payments.
THINGS TO CONSIDER WHEN SENDING YOUR MONEY ABROAD
When you transfer you transfer your money internationally, there are a number of things which you should consider.
Firstly, there is the cost of the transfer. If you are not careful, you could lose large amounts of money in hidden fees. For most people, whether they live in the UK or abroad, the first stop for making an international payment is their local high street bank. Many people assume that this is there best option when it comes to making an international payment. Unfortunately, this assumption is more often that not completely wrong because, in general, high street banks offer poor exchange rates and levy a number of hidden costs. The truth is that, in general, customers of high street banks do not always check the rates they are getting and very few actually shop around for the best rates. As a result, the banks have been able to get away with charging their clients that little bit more.
Secondly, there is the fluctuation of the currency. The currency exchange market is a very high volume and liquid market and the rates are continually swinging from one minute to the next. In today’s global economy just a few seconds or minutes can make a huge difference in the amount of money you will receive from a foreign currency transaction.
So it pays, therefore, to shop around for the best foreign currency provider.
When you make an international payment, the costs fall into two areas: fees and the rate of exchange. These are the two main considerations which you should take into account when deciding which foreign currency specialist you use for your international payments. Simply put, the question which you should be asking yourself is, "How much currency (Euro, Dollars, Swiss Francs, Pund Sterling, etc.) will you get for your money after all charges have been deducted?"
The rate of exchange is the rate at which banks and brokers buy and sell money to each other. Private individuals and small-to-medium-sized businesses do not generally have direct access these rates which fluctuate by the second.
WHAT FACTORS INFLUENCE THE EXCHANGE RATE YOU ARE OFFERED?
The exchange rate which you are offered will depend on a number of different factors. These include:
– the amount of money which you are transferring in a single transaction
– the time-frame to which you are working, i.e. is it a spot transaction where the rate is set immediately at the time of the trade, or are you looking to lock into a certain rate of exchange for up to 12 months with a forward contract?
– the volatility of the currency pair which you are buying and / or selling
– the rate of exchange at the time of purchase
HOW DO YOU FIND THE BEST DEAL FOR YOUR INTERNATIONAL MONEY TRANSFER?
The only real way to find the best deal for your international money transfer is to shop around. If you are transferring money, it pays to compare the exchange rates which are being offered and fees which are being charged by your High Street bank with currency specialists such as the LeaderFX. On average, the amount of money saved by using a currency specialist rather than your local High Street bank could be between 2% and 4% which equates to up to € 4.000,00 on a € 1.000.000,00 transaction.
HOW DO YOU DECIDE ON WHICH CURRENCY SPECIALIST TO USE?
When deciding on which currency specialist to use, it is important that you do your research thoroughly. Consider asking yourself the following questions:
– How long has the Company been in business and how strong is the Company brand?
– Is the Company authorised by the Financial Services Authority (FSA) under the for the provision of payment services? Companies that are authorised by the FSA have to meet strict capital adequacy and business practice rules. Furthermore, they have to comply with Payment Services Regulations and the FSA’s Conduct of Business requirements.
– Is the Company registered with HM Customs as an overseas Money Service Business?
– Does the Company hold your money in segregated client trust accounts? Your funds should be held separately from other Company funds at all times in order to protect it from the Company’s creditors.
– How strong is the company’s balance sheet?
– Does the Company have audited accounts?
– Does the Company have professional indemnity insurance protecting customers from staff fraud and other unforseen activities?
– Does the Company have direct access to SWIFT, the world’s largest payments and settlements network for domestic and international trades?
To take advantage of this service, visit www.leadercurrency.com and follow just a few simple steps to register and open your account. Alternatively, call our foreign exchange hotline on +44 (0)115 827 7201 (Head Office – UK) or +34 96 626 5024 (Sales Office – Spain) or send us an email to firstname.lastname@example.org for more information.
Filed under: http://www.theleader.info/article/37654/