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How to transfer large amounts of money abroad?

It’s complex to send money internationally. Even more when we need to send big amounts. There are some good reasons explaining why it’s hard to find the best way to transfer large amounts abroad:

  • Sending money abroad is complex because of the financial industry’s opacity.
  • Transferring bigger amounts is not easy because the best money transfer operators for huge amounts are different than the best ones for small amounts.

 

The industry’s opacity makes money transfers abroad difficult

According to the World Bank and moneytis, transferring money abroad is difficult and complex because there are hidden fees applied by banks, brokers and money transfer services. The hidden fees are fees which are hidden in the exchange rate. There is no transparency standard. Actors take up to 15% in hidden fees, just because some people don’t check. On the comparison service moneytis the fees are displayed in real-time and the costs are featured so that they take into account the hidden fees.

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The best operator to transfer small amounts of money abroad is different than the best one for big amounts

The large amount of money analysis done by moneytis shows that there are some actors which provide cheap rates for small amounts. It can be explained by the fact that those actors use a technology with small fix fees, i.e. small structure costs. However some other actors are bad for small amounts because they use a different technology which allows a small fix fee and almost no variable fee.

Last but not least, their rates are changing all the time. One day a solution is cheap with ~1% costs and the next day the same solution might cost 7% for the same transfer…

It’s important to consider the fact that the money transfer industry is opaque. Using moneytis helps to discover what is the best way to transfer money abroad. It’s wise to make a comparison each time we need to send money internationally because the rates are ever-changing because of special deals and promotions which are highlighted to acquire new customers.

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What are safe alternatives to banks to send money to UK safely?

We all know that banks are not fair with us when it comes to sending money abroad. To send money to UK it’s even worth because of fees they charge for receiving and/or sending money. For example we might think that it cost 40 pounds to send money from Europe to UK but the English bank might take 20 pounds more as a fee for receiving money from abroad. Anyway the most important is to know where to look at. I mean alternatives to banks. Almost all of them are safe if we find them on a money transfer comparison service. Money transfers might become simpler thanks to this. And we know there are huge amounts sent to UK so it becomes more a question of billions of fees than anything else.

The usage of currency brokers for sending money to United Kingdom

Using a broker has one advantage: cost-effectiveness. Brokers are specialized in sending larger amounts of money. However cross border money transfers have different costs depending on the service you use. So it’s important to choose a good broker and then it’s important to keep taking a look at the competition otherwise the broker is going to increase fees. You have to watch also the best exchange rate.

Most of the times the first rate is very good which make you choose the operator and make the signup process which takes long. And then after 2 or 3 transfers the rates start to be expensive but it has been such a pain in the ass to make the signup that you get screwed. Better always take a look at the comparison then.

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New online money transfer operators to send money to UK

Another kind of money transfer solutions to send money to the UK is online money transfer operators. Online money transfer services are good on the user experience point of view so they are more specialized in people who need to send money on a regular basis. Indeed those people are going to need to transfer money to a country such as the UK, and they are going to need to like their experience so that they come back. So the rates are not the most important. If you pay 10 pounds to make a transfer with a difficult operator which takes 2 hours whereas you can pay 15 pounds for a transfer which is an easy process in 5 minutes you might choose the second option. It is always the same with promotions though. Operators offer the first transfer so that the customer doesn’t really know how much it costs. Then it’s quite easy to make the signup process and the solution needs to keep providing quite good rates (but not as good as the first one) so that they keep the user as client. However because it becomes easy to change from a solution to another the providers need to stay quite competitive even though there is no incentive for them to be much more competitive than other options.

Depending on the amount we want to send it might be useful to choose either a broker or an online money transfer operator to send money to UK. Indeed sending bigger amounts is the specialty of brokers whereas sending regular remittances is the specialty of online solutions.