How to Transfer Large Amounts of Money Overseas - Monito

How to Safely Send a Large Amount of Money — Limiting Your Currency Exchange Risk · Understand What All Your Costs Are · Compare Exchange Rates Across Foreign ... TransferringLargeSumsofMoneyInternationally:Monito'sGuide FrançoisBriod GuideCo-FounderofMonitoandmoneytransferexpert,FrançoishasbeenhelpingMonito’susersnavigatethejungleofmoneytransferfees,badexchangeratesandtricksforthelastsixyears. ByronMühlberg ReviewerAwriteratMonito,Byronpossessesakeeninterestintheintersectionofpersonalfinanceandtechnology.Aformerjournalist,hestrivestobringcomplexinformationtolifeinawaythatcanbewidelyunderstoodandappreciated. Sep4,2021 Affiliatedisclosure Linksonthispagemayearnusanaffiliatecommission.Thisdoesnotaffecttheopinionsandrecommendationsofoureditors. Readmore Home MoneyTransferTips BestWaytoTransferLargeAmounts Howcanyoumakethemostofyourcurrencyexchangewhenyoutransferlargesumsofmoneyacrossborders?Byfindingtherightmoneytransfercompanyforyourneeds.Therearetwokeydetailstoconsiderwhenmakinglargemoneytransfers:whichmoneytransferprovideroffersbothagoodexchangerateandtheabilitytosendahighamountoffunds.Banksgenerallyofferbadexchangerates,butspecializedforeignexchangecompanieshavefarmorecompetitiverates,greatcustomerservice,arefullyregulatedandsecure.WhatYou'llFindinThisGuide01.Reasonstotransfermoneyabroadscrolldown02.Keyfactorsthatimpacthigh-valueforeignexchangescrolldown03.Howcurrencyexchangeworksscrolldown04.Limitingyourcurrencyexchangeriskscrolldown05.Areviewofforeignexchange(FX)providersscrolldownFindtheBestWaytoTransferLargeSumsofMoneyInternationally Countryfrom SelectacountryArrowdown Countryto SelectacountryArrowdown Yousend Arrowdown To Arrowdown Compare AllthecompanieswerecommendareregulatedandsecureMorethan1,000,000peoplealreadytrustMonitotofindthebestdealReasonsforTransferringLargeSumsofMoneyInternationallyTheworldisbecomingmuchmoreaccessibletoeveryone,sotransferringmoneyatagoodrateiscrucialtoyourgoalsandqualityoflife.Peoplemakehigh-valuetransfers(typicallyover$10,000)foravarietyofreasons:Anexpatmovingabroad:You’vedecidedtorelocatetoanothercountry,temporarilyorpermanently.Buyingapropertyabroad:Youmightbeinvestinginadesirablelocation,oryouwanttobuysomewheretoliveoverthemedium-orlongterm.Fundingeducationalcosts:Studyingaroundtheworldcanbeexpensive,soyou’llneedtopayacademicfees.Businesstransactions:Ifyou’reexpandingintonewmarkets,openinganinternationaloffice,orbuyinginventory,largeamountsofcapitalareessential.Otherreasons:Youcouldbepayingforawedding,sendingmoneyhome,buyingacar,oranyoneofdozensofreasons.Whateveryourreasonformakingahigh-valueforeignexchangetransaction,severalfactorswillhaveabiginfluenceonhowmuchmoneyyousendinyournativecurrencyandreceiveinthenewone.KeyFactorsImpactingHigh-ValueFX(ForeignExchange)Themainareasthatimpactthedealyougetfromyourcurrencyexchangecompanyare:Theexchangerateyouareoffered:ThishasthesinglebiggestimpactonthevalueofyourFXtransaction.Avarianceofjust1%or2%intheexchangeratecancreatesignificantadditionalcosts.Commissionsor“extra”fees:Bewareofanyfeesbasedonthetotalamountyouaretransferring.Thesecanreallyeatintohowmuchmoneytherecipientwillgetinthenewcurrency.Paymentfees(depositandwithdrawal):feesleviedbybanksandotherfinancialinstitutionscanimpactthetotalamountreceivedanddelayedtransactiontimes.Fixed-ratetransferfeesfromtheFXprovider:youtypicallywon’tneedtoworryabouttheseastheyareoftenwaivedonhigh-valuetransactions.AComparisonofHowMuchDifferencetheExchangeRateMakesHere’sanillustrationofthedifferencegettingagoodexchangeratecanmaketotherecipient'smoney.We’regoingtoconvert50,000BritishpoundsintoUSdollars.Here’swhatthatmeansbasedontypicalexchangerates.Inthetable*below,you’llseehowmuch£50,000isworthindollarsusingvariousproviders.Mid-Market**Ave.FXBrokerPayPalAve.BankExchangeRate1.25471.25151.21181.2085Received(USD)$62,735$62,575$60,590$60,425Loss(USD)$0.00$160.00$2,145.00$2,310.00Loss(%)0.00%0.26%3.54%3.82%Lastupdated:07/08/2021*Thistableonlycomparesexchangerates,itdoesn'ttakeintoaccountcommissionsorotherfeesthataresometimeslevied.Theseexchangeratesareaccurateasofmid-July2019.**Mid-marketexchangerate.Asyoucansee,theexchangeratemakesasignificantdifferencetothevalueofyourFXtransaction.UsingabanklikeHSBC,Barclays,orothersforinternationaltransferscanmeanyou’reuptoalmost4.00%worseoff.That’swhyyoushouldalwayschooseaspecializedcurrencyproviderwhocanprovidemuchmorecompetitiveforeignexchangerates.CompareExchangeRatesAcrossForeignExchangeProviders Countryfrom SelectacountryArrowdown Countryto SelectacountryArrowdown Yousend Arrowdown To Arrowdown Compare TheHiddenCostsofCommissionsandExtraFeesMostforeignexchangeprovidersdon’tchargeadditionalfeesforhigh-valuetransactions,buttherearesomeexceptions.Bankswilloftenchargeaflatfeeinadditiontoprovidingpoorexchangerates.Forexample,ona£50,000currencyexchange,Barclayswouldchargeanadditional£28.They’renottheworstculpritsforfeesthough—forthat,youneedtoturntoPayPal.PayPaldoesn’tprovidegoodexchangerates,tobeginwith.Tocompoundthat,theythenaddanadditionalfee(between1%and3.9%for£to$conversions).Thisfixedfeecansignificantlyimpacttheamounttherecipientgets.Onthe£50,000transaction,thatadditionalfeecomestoaround£500andcouldgoashighas£2,000!PaymentFeestoDepositandWithdrawMoneySomebanksandfinancialinstitutionsdochargetosendandreceivecurrenciesintoaccounts,especiallyifyourFXproviderdoesnothavelocalpay-inorpay-outaccountsinyourcountry.Althoughthesefeesarenotnormallythathigh,youneedtopayattentionfortwoimportantreasons:Thedeductionofafeewillimpacthowmuchtherecipientgets.Iftheyarerelyingonreceivingaveryspecificamount,thiscouldmeanthemoniesyoutransferwon’tfullysettleyourobligations.Gettingyourfundstotheproviderorbeneficiarycantakelonger,sometimesmuchlonger.Youshouldspeaktothesendingandreceivingbankstounderstandanyfeesthatarelikelytobeleviedandplanforthem.HowCurrencyExchangeWorksThecurrencyexchangeprocessisstraightforward.Althoughitvariesfromprovidertoprovider,itwillfollowthesesteps.ReviewwhichFXprovidercangiveyouthebestexchangerateonMonito.Setupanaccountwithyourcurrencyprovider.Theytypicallyneedyourname,address,contactdetails,bankdetails,andproofofidentification.Decidethecurrenciesthatyouwanttoexchangemoneybetween.Bookaratethroughyourcurrencyprovider;youmayuseaspotrateorgetaforwardcontracttolockinanexchangerate.Providedetailsofthesenderandreceiverofthefunds.Sendmoneytoyourcurrencyprovider.Forlargervaluetransfersthiswilltypicallybefromabankaccountalthoughyoumightalsouseacreditordebitcard.Yourcurrencyproviderwillmaketheexchangeanddepositfundsinthenewcurrencyintherecipient’sbankaccount.HowtoSafelySendaLargeAmountofMoney—LimitingYourCurrencyExchangeRiskIfyou’retransferringlargesumsofmoneyinternationally,it’simportanttodosointhemostsecureandleastriskywaypossible.Thereareseveralstepsyoucantaketogetthejobdone:UnderstandWhatAllYourCostsAreYouwillneedanunderstandingofyourend-to-end,totalcostsincludingexchangeratesandanyfees.Our foreignexchangecomparisontool showsyouexactlyhowmuchyoucanexpecttopayandreceive.CompareExchangeRatesAcrossForeignExchangeProviders Countryfrom SelectacountryArrowdown Countryto SelectacountryArrowdown Yousend Arrowdown To Arrowdown Compare WorkWithaPersonalAccountManagerSomecurrencyproviderswillassignaspecializedaccountmanagertotakecareofyourcurrencyexchangeneeds.Thisisespeciallytrueifyou’retransferringlargeamounts.Theycanwalkyouthrougheverystepoftheforeignexchangeprocess,soyouknowexactlywhat’shappeningateverystep.Insomecases,youwillevennegotiateyourexchangeratewiththeaccountmanagerandgetabetterdeal.FindGoodCustomerServiceGoodcustomerserviceisvitalwhenyou’retransferringlargeamounts.Ourreviewssectionhighlightscurrencyproviderswhohaveexcellentcustomerservice.UseaForwardorLimitOrderForwardandlimitorderscanhelpprotectyoufromexchangeratevariations.Aforwardorderletsyousetaratenowforcurrencyexchangesthatyou’llcompleteinfuture.Alimitordermeansyourcurrencyexchangewillonlyhappenwhencertainconditionsaremet;forexample,theexchangeratehitsacertainvalue.Talktoyourprovideraboutthesetypesoforders.ReadReviewsofVariousCurrencyProvidersOneofthebestwaystomanageyourriskistoreadreviewsofforeignexchangeproviderssoyoucanmakeaninformedchoice.HereatMonito,weprovideexpertreviews,customerreviews,andvideoreviewssoyoucangettheinformationyouneed.We’veincludedinformationaboutseveralofthemostpopularcurrencyexchangeprovidersbelow.ReviewsofPopularForeignExchangeProvidersWe’velistedseveralofthemostpopularoptionsforinternationalcurrencyexchangeprovidersbelow,togetherwiththeprosandconsofeach.CurrenciesDirect“Activesince1996,CurrenciesDirectisoneofthefirstforeignexchangecompanies.Theirmodernandeasy-to-useonlineplatformoffersmanydifferentserviceswhenitcomestosendingmoneyabroad.” — FullCurrenciesDirectreview.Spot,forward,andlimitordersavailable.AscoreofnineoutoftenonTrustpilot.Youcansendmoneytomorethanonepersonatatime.Excellent,expertcustomerservice.Verycompetitiveexchangerates.GetaquoteCurrencySolutions“CurrencySolutions,whichpridesitselfonitshigh-qualitycustomerservice,hasbeentrustedbyover150,000clientstotransfer£6billionsinceitsestablishmentin2003.Youcanmakesingleorregulartransfersin35differentcurrencies,and95%oftransfersarereceivedwithin24hours.” — FullCurrencySolutionsreviewTheydonotchargeatransferfee.Theyhavesomeofthemostcompetitiveexchangeratesavailable.Theyhavehigh-qualitycustomerservice.Simple,efficient,andfast.CustomerratingoftenoutoftenonTrustpilot.Noonlinecurrencytransferplatform.OnlyavailableintheEnglishlanguage.GetaquoteMoneycorp“MoneycorpisthesecondlargestforeignexchangebrokerintheUnitedKingdom.In2015,Moneycorptradedover£22bnin90differentcurrencies.”— FullMoneycorpreview.Alargeandexperiencedcurrencyexchangeprovider.Highlyratedbycustomerswitha97%positiveratingonFeefo.Currencyexchangeisavailableonline,throughanapp,andoverthetelephone.Theirexchangeratesaren’talwaysthemostcompetitive.Theonlineplatformcouldbemoreintuitiveandeasiertouse.Transfersareoccasionallydelayed.GottoMoneycorpOFX“Thecompanywasestablishedin1988toprovideindividualandcorporateclientswithasuperiordigitalalternativetoexistingforeignexchangeservices.OFXhastransactedover$100billioninitshistory,sendingmoneytobankaccountsin197countriesandover50currencies” — FullOFXreviewOneofthelongest-established,bestknownforeignexchangeproviders.Open24/7andavailableoverthephoneoronline.Anextensivebankingnetworkmeansit’seasytosendandwithdrawmoneyinmultiplecurrenciesandcountries.Excellentcustomerservice.AratingofnineoutoftenonTrustpilot.Speedycurrencytransfers.OnlyavailableinEnglish.Slightlyhigherexchangeratesforsmallamountsbutcompetitivelypricedforlargeramounts.GetaquoteWorldFirst“WorldFirstisoneofthebestestablishedandwellknownspecialistcurrencyexchangeproviders.HeadquarteredintheUK,theyprovidededicatedinternationalmoneytransfersaroundtheworld.WorldFirstservesindividualsandbusinesses,includingonlinee-commerceexchangeservices”— FullWorldFirstreview.Theyprovideyouwithaspecializedaccountmanagerasastandardtohelpwithcurrencytransfers.Theircustomerserviceisconsideredtobeexcellent.Theyhavea98%approvalratingfortheirservicesfromFeefoonlinereviewsandanaverageof4.8outof5stars.Nofeefortransfersover$10,000.Exchangeratesarearound1%belowthemid-marketinterbankrates.Theydonotacceptelectronicdocumentationasproofofidentification.Someaccountsmayberefuseddueto“complianceissues.”GotoWorldFirstCurrencyFair“CurrencyFairhasauniqueapproachtointernationalmoneytransfers.Insteadofexchangingyourcurrencywithabankoramoneytransfercompany,youactuallyexchangewithotherCurrencyFaircustomers.Thisfullyautomaticandtransparentpeer-to-peerapproachmeansthatyoucanchoosewhatexchangerateyou’dlike,andaslongasanotherCurrencyFairuserislookingtoexchangeintheotherdirectionandacceptsyourexchangerate,thenthat’stherateyou’llbothget.” — FullCurrencyFairreview.CurrencyFairexchangeratesareexcellentandcansometimesbeatthemid-marketrate.Low,flatfeesGreatreviewsonTrustpilotTransferringontheCurrencyFairmobileappsisveryconvenientTheentireprocesscanbeabitcomplicatedthefirsttimearoundAlimitednumberofsupportedcurrenciesandcountriesGotoCurrencyFairOtherreviewsofcurrencyprovidersYoucanfindfurtherreviewsinour reviewssection orthroughthelinksbelow.FrontierPayHaloFinancialGlobalReachPartnersHiFXFairFX Countryfrom SelectacountryArrowdown Countryto SelectacountryArrowdown Yousend Arrowdown To Arrowdown Compare OtherMoneyTransferGuides Fee-FreeInternationalMoneyTransfers:AreTheyReallyPossible? July23,2021-byByronMühlbergFabianBlankonUnsplash HowToReceiveInternationalPaymentsinIndia December3,2021-byJarrodSuda InternationalMoneyTransfers:BanksvsSpecialistServices July8,2021-byByronMühlberg FindtheFastestWayToSendMoneyInternationally July22,2021-byFrançoisBriodWhyTrustMonito?You’reprobablyalltoofamiliarwiththeoftenoutrageouscostofsendingmoneyabroad.Afterfacingthisfrustrationthemselvesbackin2013,co-foundersFrançois,Laurent,andPascallaunchedareal-timecomparisonenginetocomparethebestmoneytransferservicesacrosstheglobe.Today,Monito’saward-winningcomparisons,reviews,andguidesaretrustedbyaround8millionpeopleeachyearandourrecommendationsarebackedbymillionsofpricingdatapointsanddozensofexperttests—allallowingyoutomakethesavviestdecisionswithconfidence. LearnMoreAboutMonito MonitoisTrustedby15+MillionsUsersacrosstheglobe.Monito'sexpertsspendhoursresearchingandtestingservicessothatyoudon'thaveto.Ourrecommendationsarealwaysunbiasedandindependent.