The cost of sending money abroad can be expensive depending on the method you use. Some options cut a fixed percentage while others make money using interest rate differentials. In this article, we will look at some of the best tips to save costs when sending money abroad.
Take advantage of introductory offers
The online money transfer industry is a relatively competitive one. As such, companies in the sector are always looking for ways to boost their competitive edge in the marketplace. One of the most common approaches is to offer one or more free transactions to first-time customers. Their goal is to attract and possibly retain that customer for many years. Some of the companies that offer these introductory offers are Wise, WorldRemit, and TransferGo, among others.
Bulk compare prices
Price comparison is another strategy that will help you save money when sending money abroad. Fortunately, many companies are transparent enough to show you the total cost and exchange rate that you will use. Still, comparing the hundreds of companies in the sector can be a difficult thing. Therefore, using a company like MoneyTransfers that compares many companies at once can save you money and time.
Compare exchange rate
The exchange rate used when you are sending money has an impact on the overall cost. Indeed, many companies that offer free transactions make money by taking advantage of the exchange rate differentials. For example, assume that the exchange rate between the US dollar and sterling is at 1.1200. If you are sending $10,000 to the UK, the recipient will receive £11,200.
At times, the company can quote this exchange rate at 1.1150, meaning that the recipient will receive £11,150. Fortunately, many companies nowadays tell you the fixed exchange rate they will use to process a transaction.
Check all the fees
Another way of saving money when sending money is to simply read the fine print or the company’s terms and conditions. At times, a company will present to you an offer that is too good to be true. To stay safe, we recommend that you pause and first read the terms and conditions. Doing this will give you more details about the total cost of your transaction. For example, if you see a company offering a free money transfer service, reading the fine print will show you how it makes money.
In line with this, you should check the various options offered by companies. Some companies will charge you more money if you want the recipient to receive the funds instantly. Others will charge you money depending on the mode of transfer. For example, a company like Wise charges you more money if you are sending funds from your credit or debit card than when you are sending from your bank account.
At times, it is possible to save money when sending money abroad using some cryptocurrencies. The idea is relatively easy. You just create an account with a reputable cryptocurrency exchange, buy a cryptocurrency like Monero and Dash, and then send the funds to your recipient. The recipient will then transfer these funds to their bank accounts or debit cards. The main risk for using this method is that cryptocurrencies are highly volatile, meaning that the total value they withdraw can be significantly low.
Take advantage of referrals
Many money transfer companies will give you credits whenever you refer a customer. If you have a large network, you can refer people to the company and accumulate rewards. By doing this, you will be in a good position to save money or accumulate reward points.
Offline to online
Traditional money transfer options like money orders and sending a physical check can be relatively expensive. Furthermore, companies like banks have high operational costs like employees and premises. Therefore, you can save money by transiting from offline ways of sending money to online ones like PaySend and Wise. These companies are better because they are fast and transparent.
It is possible to save money when sending money abroad. In this article, we have looked at some of the most popular methods to cut your costs when sending money abroad. Others you can use to save money are verifying the identity of the company you are using and sending larger amounts.