Using the wrong provider
While you might assume that using your bank is the easiest way to move money abroad, there are simpler and more cost-effective options out there.
Leading currency transfer providers are specialists in foreign exchange and can help you save time and money by giving you access to more competitive exchange rates and a range of tailored transfer solutions.
Some currency providers will assign you a dedicated account manager, a currency expert to look after your requirements, talk you through your options and keep you up-to-date with the latest market movements.
Using a currency specialist can also be more convenient than using your bank as some give you the option to move your money online, over the phone or through an app – meaning you can send money overseas anytime, anywhere.
Paying transfer fees
Further to the point above, many banks will charge a fee every time you move money abroad – typically between £10 and £40 per transfer.
While this might not sound like much it can really add up if you’re sending money abroad on a regular basis.
For example, if you were moving your pension abroad every month a transfer fee of £25 would set you back £300.
By using a provider who doesn’t charge these fees you’ll make immediate savings.
Not keeping an eye on the latest currency news
Exchange rates are temperamental and prone to constant fluctuations.
Movement can be triggered by anything from central bank rate cuts to political developments abroad or at home.
Exchange rate fluctuations can have an enormous impact on the amount you receive when you transfer your money abroad.
In 2019 the GBP/EUR exchange rate moved between lows of €1.06 and highs of €1.20.
This 14 cent discrepancy would have meant the difference of €3,500 on a £25,000 transfer.
Although exact currency movements are very difficult to predict, general forecasts can be made based on the way a currency behaved in the past and known influencing factors.
By signing up to receive free currency updates you can stay on top of what exchange rates are up to and choose the best time to move your money abroad.
Other useful services to take advantage of include “Rate Alerts”, which inform you when an exchange rate hits the level you want to achieve.
Not looking into your options
Currency transfers made at high street banks usually involve “spot transfers”, meaning your money is converted on the spot at the current exchange rate.
However, if you don’t need to make a transfer right now but you like the look of the current exchange rate you could fix it for up to two years using a forward contract.
Other key services to consider include limit orders and regular transfers.
By avoiding these mistakes you could eliminate the hassle and make serious savings on your international currency transfers.
This article was provided by TorFX – a five-time winner of the Moneyfacts Consumer “International Money Transfer Provider of the Year” award.
TorFX were established in 2004 and are part of a group employing more than 500 currency experts across 20+ global offices.
If you have any questions or would like to get a free quote, contact Natalie Collins on 01736 335234 or email@example.com.