International transfers are far from the seamless and instant experience of local payments; rather, they are often full of complexities and challenges rooted in varying regulations across countries, involvement of multiple intermediary banks and currency conversion delays. International money transfer is no longer an occasional need but part of everyday operations. However, cross-border transactions are …
International transfers are far from the seamless and instant experience of local payments; rather, they are often full of complexities and challenges rooted in varying regulations across countries, involvement of multiple intermediary banks and currency conversion delays. International money transfer is no longer an occasional need but part of everyday operations. However, cross-border transactions are no doubt the most crucial part of running an international business, sending overseas remittances or being involved in global trade. However, it is also one of the most challenging operations with slow processing times, regulatory restrictions, currency rate fluctuations and high FX fees.
Whether someone is sending money to their family or making a business transaction, no one wants to pay extra for an FX transfer. However, finding FX transfer services that offer faster transactions with low FX fees is quite challenging. This blog provides some easy tips to help you minimise FX transfer costs so you can seamlessly transfer money across borders with low FX fees.
For beginners, let’s first understand what an FX fee is and why securing low FX fees is crucial for international transfers before we learn how to manage them. FX fees, or foreign exchange fees, are the charges incurred when converting one currency to another during international money transfers. This fee can be charged in different ways depending on the FX transfer service provider you are choosing. Some banks and providers charge a flat fee, while some apply a percentage-based fee. What makes FX fees frustrating is that most FX service providers do not mention it upfront and still deduct it as hidden charges. So, whether you are sending money abroad or trading, the FX fee can quickly add up the cost, making you lose money unexpectedly. Moreover, if you are making business transactions, FX fees can disrupt your budget and shrink your profits. Therefore, it is essential to get a low FX fee and minimise your charges. Here’s how you can do that.
Many people believe that banks are the best option for transactions, but when it comes to international money transfers, they aren’t the ideal choice. Banks usually charge higher FX fees and other hidden charges for cross-border transactions. Moreover, bank transfers are far slower and can take up to days to complete, whereas fintech solutions offer faster transactions at favourable FX rates and low FX fees.
Another convenient yet expensive way to make an FX transfer is using a credit or debit card. Banks deduct higher fees along with unfavourable exchange rates that can eat up your money. Therefore, where it is not necessary to use a card for foreign transactions, try using a multi-currency account for better rates and low FX fees.
You must have observed that sometimes when you make an international transaction, the fee charged is unexpectedly higher than what you anticipated as per the mentioned charges. Ever wondered why? At times, providers advertise their services as “fee-free” or with ‘Low FX fees’ to attract customers. However, they often make up for it by charging hidden fees through unfavourable exchange rates or other undisclosed costs. In short, to avoid wasting money on these tactics, the best strategy is to look for an FX service provider with a transparent fee structure and minimal markup.
Most of you might not be aware of this simple trick to minimise your FX fee. Whether you are making a transaction via a bank or financial service provider, before making a cross-border transaction, especially when transferring a large sum of money, you can request better FX rates or waive certain fees. This tip can be very useful for businesses as they can make frequent international payments at reduced costs.
If you want a low FX fee, avoid making double conversions, as they can be much costlier. For example, if you need to convert USD to EUR and then to GDP, it will add up to extra conversion costs and raise your overall transaction fee.
If you frequently send money abroad, then there’s another simple trick to get a low FX fee, which is by bundling your transfers. Instead of sending small amounts multiple times a week, you can send larger sums, which can, as a result, reduce the number of times you incur FX fees. In addition to saving transfer fees, you can also potentially get a better exchange rate for a more significant amount.
So, international money transfers don’t have to be a financial burden. You can simplify your transactions, save on FX fees, and get the best FX rates by taking proactive steps and choosing the right transfer service.
Are you tired of looking for reliable options that offer good FX rates and low FX fees? Don’t worry—we’ve got you covered! We offer FX services that ensure fast and secure transactions with transparent pricing and dedicated support. Whatever your needs are, you can rely on us for your international transfers and enjoy smarter and cost-effective solutions tailored to them!
