What Is the safest way to send money abroad?

The safety of your money when sending it abroad depends of course on the method you choose. Here are some of the options to transfer money abroad and tips to choose the safest method for international money transfer. 

Options to Send Money Abroad

Bank transfer

Bank transfer is obviously one of the most common ways to send money abroad. Bank transfers are safe and reliable, though they are by no means the most cost effective or fastest option. Inter-bank money transfers and transferring money from one bank or one financial institution to the other within the same country, is mostly free of cost. However, sending money from one country to another includes different types of fees (some hidden), so be sure to factor this into your decision making process. 

For international money transfers, the bank may charge up to 0.4% of the transacted amount. Some banks also charge fixed rates for one transaction. SWIFT code or International Bank Account Number (IBAN) are required to send money to another bank abroad. 

Forex brokers

Foreign Exchange brokers are increasingly becoming the most popular and effective method for sending money abroad. Brokers tend to offer much more competitive rates, and also tend to be far more customer focused than the banks. They provide you with personal account managers and more accessible customer service facilities. There are many FCA regulated Forex brokers out there so do some research before choosing one. Independent online review forums are a great way to assist you in deciding how you choose. 

Online payment systems

Online payment systems are another increasingly popular option. It has become one of the most relied upon methods for international money transfers. There are an increasing number of online providers out there, so do your research before choosing one. Notable examples include PayPal, Payoneer, 2Checkout and Braintree to name a few (there are quite literary, hundreds!). For the most part, they are safe and reliable, however, as with the banks, their service does come with a number of additional charges. While it is free to send money from one PayPal account to another, the recipient of the money will be charged a small amount for withdrawing money. For £2000, the recipient will be charged around 2.9% of the transaction as fee. For international money transfer, a 1% extra fee is also added to every transaction fee. 

Sending a cheque

Sending cheques overseas is slow and expensive as you will have to pay foreign bank charges and potentially UK handling charges. Try and avoid this option, as we’ve already discussed there are far better ways to transfer money overseas nowadays!

Things to consider when sending 

Speed - When sending money abroad, you need to make sure that the money is received transparently and on time. 

Support - Make sure that the option you choose provides satisfactory customer service and offers maximum support for retrieving the money in case of theft or when lost. 

Tracking - Technology nowadays, allows us to track and monitor transactions at every stage of the journey, from the moment your funds leave your account, to the moment they arrive in the recipients account. Make sure whatever option you choose provides this service. It will give you that added piece of mind and level of security. 

Tips to remember for safe transactions abroad

• Interbank exchange rate is the amount the banks charge to their customers for exchangeable currencies. This exchange rate is often 3-6% higher than market rate. When sending money abroad via bank transfers, make sure that you choose a bank with the lowest exchange rate, though as discussed above, for the most competitive rates, use a Forex broker.

• Transfer fees also vary from one bank to the other. List down the money transfer fees from the options you have selected, and choose the option that is the most cost effective and won’t hit you with all those additional fees!

• Make sure that the company you are using is reputed for good customer service, and ask them about their procedure of retrieving lost money.