Making a foreign money transfer? Here are some top tips from the experts
Avoid the pitfalls of foreign exchange
AIPO friends and foreign currency experts, Clear Currency, have a few pointers to consider when the time comes to make an international payment that will ensure you are making the right decisions:
There are a couple of ways you could be charged for making an international payment:
Transfer Fee: some banks and other providers can charge a fee for transferring your hard-earned money. This is often a fixed fee charge, or can be based on a percent of the overall sending amount.
The Conversion Fee: typically providers can make most of their profits from the currency exchange rate they offer to you and the rate at which they purchase the currency, often described as the mid-market exchange rate. It’s important you ask the provider what the actual rate you will be offered, and ensure to seek out a favourable rate.
There are a number of cases where individuals that need to make an international payment quickly have not considered the conversion rate and consequently lost a significant amount of money in the transaction. For example, when sending an international payment from the UK to the UAE of £300,000 with a currency specialist you would typically expect to save thousands of pounds in the conversion rate when compared to a high street bank. Read on