Need to transfer money around the world? Avoid un-necessary fees and additional costs with these handy global money transfer tips.
If you’ve ever sent money from your bank account to a different country, you’ll be aware that those bank transfers fees can sting. Fees can range from 0.5% up to around 5%, or you can pay a flat fee, anything in the region of $50 or more. Add into that a less than favourable exchange rate and you probably feel like you’re getting shafted.
So, being the 21st century, there must be a better way… Right?
For sending any amount of money abroad, perhaps to pay a client or family member, these are our best suggestions for affordable global money transfers.
TransferWise
This fintech startup has become one of the most popular ways to send money transfers around the world. The benefits of using TransferWise are that they use the bank exchange rate with a low fee which is shown when you put in the amount you want to send. And that’s it… It’s transparent how much you’re going to get charged, and usually the recipient doesn’t get charged either (although this depends on their bank).
TransferWise is probably one of the best ways to send money abroad today…
Crypto currency
Is this a good idea, I hear you ask? I mean, Bitcoin is subject to huge swings in value and who knows, it might collapse in the next few days? Well, maybe this is all true. But using crypto to transfer money around the world is actually a pretty cheap way of doing things.
Many exchanges charge a small percentage for you to buy cryptocurrency such as Bitcoin or Ethereum. Coinbase, for example, is a popular option. You can then send the money to another crypto wallet, usually for free.
With the fluctations in value though, your recipient will need to be quick to withdraw. They could end up with less than you sent, or, if they’re lucky… A lot more!
PayPal
You already know about PayPal, surely… It’s become the webs payment method, which is great for small amounts. If you’re looking to transfer a large amount, this might not be your best option as they do charge a percentage, which varies by country.
For paying for goods and services, or sending small payments, PayPal is easy to use.
Escrow
For what it’s worth, this probably isn’t the cheapest way to transfer money around the world. BUT… If you’re doing a big deal, or moving a large chunk of money for a service or purchase, and you don’t 100% trust the guy on the other end, Escrow is very useful.
Your money is kept in a holding account and both parties need to be happy to let the money be transferred. You also need to set up a trusted third party in case of any disputes. In the case of business transactions, use a lawyer or other legal professional.
XE
An established financial company, XE.com is a reliable option for transferring money around the world, no matter the amount or destination. On the plus side, XE offers better rates than a standard high street bank. In fact, their rate is the Interbank rate with a small margin as their percentage. This varies depending on the amount you are transferring, from 2% down to around 0.75%.
Transfers are normally pretty quick and can be sent to almost every country in the world (170 at last count) in 60 currencies. We like the fact that they are a long established company and their rates are very competitive. Much better than PayPal, less risky than Cryptocurrency and cheaper than Escrow.
Conclusion
When it comes to money transfers, you needs will most likely influence what you choose. I personally prefer a combination of TransferWise and Crypto for moving money around…. These tend to have the lowest fees and are becoming the normal option.
If you have any other suggestions for great ways to transfer money around the world, please comment below!
