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How to save money on international money transfers

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While there are many ways of making international money transfers, what one ends up paying, varies substantially from one service provider to another. It therefore, makes sense for people to try and carry out some research about what the different companies charge for their services and choose the one that offers them the best rate. If you had to find the cheapest way to send money to Canada, you wouldn’t just use any of the services available without checking all their details. You would ideally like to check the costs associated with the transaction by comparing various providers available.

Considering the amount of companies available, each promoting various features, we’ve put together this guide to help you identify all the main factors that you should consider when picking a money transfer provider:

1. Exchange rate

This is a very significant factor in deciding how far your money will go in the currency that it is transferred to. As you might be aware that the exchange rate fluctuates all the time and you have no guarantee that you will get a fair one. Many money transfer companies are not fully upfront about this fact with their customers, often offering them less than ideal terms.

If you are looking at transferring money through an international money transfer company, do see if they offer any kind of immunity against exchange rate fluctuations. You would also do well to compare the rates and terms offered by several such companies and use that information as a bargaining chip to obtain the best rates.

2. Wire transfer fee

The wire transfer fee charged by banks can vary quite a bit from bank to bank. You might want to go with the one that charges the lowest fee, but you should also factor in the time taken to deliver the money and the exchange rate they offer. In the ultimate analysis, it is the total amount that you end up paying that should decide your choice of an international money transfer service.

3. The amount being transferred

The size of the amount of money that you seek to transfer abroad also has a bearing on how much it is going to cost you. Different money transfer organizations have varying rules pertaining to what they charge for large or small amount transactions.

For large transactions ranging between a thousand and five thousand dollars, it might make sense to go for a bank wire transfer, as you will only end up paying a flat fee. However with other international money transfer services like MoneyGram and Western Union, the charges for wiring money abroad increase proportionately with higher amounts. It might be a good idea to transfer sums less than $1000 with such services.

Another thing that you should be wary about when you transfer large sums abroad is the tendency of some money transfer companies to charge very low transfer fees and then proceed to rip you off by offering you the most unfavorable exchange rates.

4. The payment method and delivery times

The method of payment and the time taken to make a delivery too have a bearing on how much you will end up paying for an international money transfer. Using a debit or credit card to fund an international money transfer may result in an immediate remittance by wire, but the cost of the transaction will be higher than by other means.

So pick your method of delivery in accordance with the desired speed of delivery. If there is no urgency in remitting money abroad you could choose a method that takes longer, but costs you less.

5. Bank account availability

It is advisable to not use an international money transfer company that does not have a bank account in the countries that you are transferring money from and to. This is because in such cases you shall end up paying a large sum as fee to banks handling your money at either end of the international money transfer. This is not something that you would normally think about, but has a huge bearing upon the cost of your international money transfer.

Conclusion

Making international money transfers might be the easiest thing in the world, but that does not mean that you don’t try to find out which service provider suits your interests best. Saving money on every international money transfer you make, especially for those who make them very frequently is possible if you carefully compare the terms offered by the myriad international money transfer companies and settle for one that is ideal for your requirements.

About Business Woman Media

Our women don’t want to settle for anything but the best. They understand that success is a journey involving personal growth, savvy optimism and the tenacity to be the best. We believe in pragmatism, having fun, hard-work and sharing inspiration. LinkedIn

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