Sending money abroad does not have to be complicated – in fact it can be done within just a few minutes. However it is important to make sure that your money is transferred safely, whilst also keeping the cost of the transaction to a minimum. In this article we will share our top tips on how to send money abroad safely from the UK.
The cost of sending money abroad
Before we share our tips on how to send money safely, we thought we would briefly explain the costs involved when sending money abroad. The first cost comes in the form of a fee. Some fees are charged to the sender, whereas others are charged to the recipient or even both parties. Those that charge fees to both parties often break down the charges so they appear smaller, disguising the extent it costs to send money abroad with their help.
Exchange rates are the hidden cost of sending money from the UK to a recipient abroad. Before sending money abroad with a provider, try to find out the exact exchange rate they offer and compare it with others.
Banks and building societies
An easy way to transfer money overseas is through your bank or building society. Sending money from the UK to a recipient abroad through your bank is easy, secure and ideal for small payments. It usually takes around four to six business days for transactions to be made and you should expect to pay fees in the region of fifteen to thirty pounds for a standard service, depending on how much money you are sending. If however you are sending a larger sum of money (over three thousand pounds) or need the transaction to be made instantaneously, you may be better sending your money through a foreign exchange broker.
Foreign exchange brokers
Foreign exchange brokers specialise in currency transactions and can be used to send money overseas. Most foreign exchange brokers handle larger transactions, with many making their money on the exchange rate, rather than charging a hefty fee for their service. In order to make a payment you will need to open an account with a broker. It is extremely safe to send money from the UK this way, providing that you choose a reputable foreign exchange broker to work with. Here are our top tips for finding a reputable broker.
Before you open an account with a foreign exchange broker, always do a little research on their company. Look out for reviews from others that have used their services and find out how long the company has been established. The longer they have been in business and the better reviews they have, the more reputable they are likely to be. It is also important to check that they are FCA registered.
When looking for a broker, always shop around for the best deal. Remember you should not just be going on fees but exchange rates too. Some companies will go out of their way to fool you by hiding their costs in poor exchange rates.
Ease of use
A reputable broker will provide you with an easy, convenient and safe way to transfer your money. Look for companies that have secure websites. When checking out a broker’s website, make sure that it has contact details such as a phone number and address. This is important as you need to make sure you can get in contact with the broker if you need help or if something goes wrong.
A reputable broker will provide customers with transparency, offering their fees and rates upfront. If a broker fails to show their fees or makes it difficult for you to find them, it suggests that their fees are either expensive or that they are trying to mislead you.
If you are looking for a safe way to send money abroad from the UK, you can either use your bank or an independent broker. Either way it is important to make sure that you are given the fees and rates upfront and that you retain the paperwork for future reference.