Is it cheaper to use my bank to transfer money abroad?
If you are planning to send money abroad, you have a number options at your disposal. However, most people want to seek out the cheapest and most affordable option to send money overseas. Out of the many options available to transfer money, the most common method is sending it through a bank. But, is this the cheapest?
Sending money using your bank is a popular option due to the fact that it is both convenient and safe. While it is unquestionably convenient, it is certainly not always the cheapest option, and you may want to consider another provider when sending a large sum abroad. Increasingly, many people decide to use the services of a foreign exchange broker, due to their competitive rates, and higher standard of customer service.
Foreign exchange brokers
Like the banks, foreign exchange brokers can transfer large amounts of money from one location to another. Unlike the banks, they do not charge you for sending the money, but make their profit based on the current (up to the minute) Forex rates. Bank charges and exchange rates can make the process of transferring money expensive. You should ask your bank about any fees they charge in advance before you make up your mind to go with this option. Another disadvantage of using a bank to make a transfer is the fact that foreign banks may charge you extra for receiving a payment.
If you do decide to use a bank, you should investigate the payment structure of both banks, domestic and foreign, in order to prevent an unwanted surprise. In addition, it is a good idea to visit your bank to ask them to highlight all the extra fees, including your payment so the entity or person you are sending your money to receives it in full.
What is the cheapest option to send money?
Individuals who send money to another country on a regular basis need to find the cheapest and most convenient option to do so. Even though using a Forex broker is the most practical solution, you should consider other options as well.
If the bank you are using has a branch in another country, you should establish an account in its foreign branch as well. This will lead to lower bank charges along with increasingly competitive exchange rates. By doing so, you will easily be able to make timely and regular payments.
People who are using a bank to make a payment need to have their International Bank Account Number (IBAN) and Bank Identifier Code (BIC), which they can find on their bank statement or they can ask the bank to provide them with these details.
What are the alternatives?
People who want to transfer a large sum of money on a regular basis should really use a foreign exchange broker. You should avoid using cheques at all costs because they are expensive and slow. Not only will you be paying foreign bank fees, but also expensive bank handling fees.
Furthermore, it is important for people to select a method to transfer money abroad based on all of their options and the additional charges. It is safe to assume that people look for the cheapest and most reliable option when sending money to another country. To answer the question of whether or not using banks is the cheapest and most reasonable option to send money abroad, one should know that it solely depends on the amount of money you are planning to send, and where you are planning on sending your money too. However for great rates and a far more personalized level of customer service, a good Forex broker is the way to go.