Disadvantages of using a bank to transfer your money abroad
When you need to make an international money transfer, the first option that springs to most people’s mind is the banks. While certainly, the banks are the easy and convenient option for most people, they are also known to charge excessive fees as well as noncompetitive exchange rates. This shouldn't come as too much of a shock to anyone, though the extent to exactly how excessive these fees are, and how noncompetitive their rates can be, may just surprise you. Therefore, when deciding on money transfer options, you should at least carry out a little bit of research into other options, so that you can benefit from the best rates out there, and make your money go that little bit further!
Disadvantages of bank transfers
When using the banks to transfer money overseas, you should be wary of all their charges, both hidden and otherwise, and then compare these charges to the other options out there. In addition to this, you should also look into the amount of time it will take for the bank to transfer the money to the recipient, as again this often exceeds what other providers can deliver. In most instances, you will find the other options out there to be considerably better value, not to mention, more convenient!
Fees and exchange rates
Most banks will charge you transfer fees which would include a commission as well as the exchange rates. It is quite common for some of these charges to be completely hidden and once you encounter these hidden charges, you will find the overall cost for your transfer to have risen significantly from what you had initially expected.
Days required
In some cases, international bank transfers with banks take a lot more time for complete execution in comparison to the other modes of transfer. In many respects, banks are considered to be the slowest mode for international money transfers.
Market transparency
One of the key distinctions between the banks and Forex brokers is transparency. Unlike the banks, Forex brokers make a point to provide their clients with the latest exchange rates on a daily basis so that the customers can take advantage of any recent positive changes. This proactive and transparent approach contributes significantly in further reducing the costs of international money transfers. Banks, on the other hand, only update their rates at their own convenience and don't consider how harmful fluctuations of foreign currency can affect customers. With all this in mind, currency brokers are renowned to be the superior choice when it comes to providing bank beating exchange rates.
Bank transfers against Forex brokers
Forex brokers are clearly the better option when it comes to international money transfers. Banks simply end up overcharging on everything. From noncompetitive rates and a lack of price transparency, to excessive fees and hidden charges, the banks offer little value to customers making international transfers. So when it comes to making regular international money transfers, look at the options out there, as you may very well end up losing a significant amount of money. Especially with the more cost effective options available to everyone nowadays. This can be detrimental to your business, or even your savings and personal cash flow.