If you want to save money when sending money abroad having access to information is the key, most importantly you need up-to-date information on exchange rates and fees.
When you use Best Exchange Rates you can see clearly which currency vendor is offering the best deal for your International Money Transfers and Travel Money needs, and most importantly who is taking the lowest margin on the exchange rate and smallest fees to give you the largest possible converted amount.
The largest cost is the exchange rate margin not the transaction fee…but most FX providers only ever mention the fees!
Both banks and currency exchange providers apply a margin (a percentage charge) to the mid-rate you see on the news each night, the mid-rate is what it costs large banks and currency brokers to buy and sell foreign exchange and is also sometimes called the Inter-bank exchange rate.
On top of this exchange rate margin they generally also apply fees and commissions, all these add up to your Total Cost of Exchange. Once you are sending over $1000 (or equivalent) the largest cost component is generally in the exchange rate margin not the commissions and fees. Often currency vendors advertise that their exchange is “Commission Free” but this is because they make all their profit through the rate.
The largest cost is in the exchange rate margin rather than the fees…but most FX providers only ever mention the fees!
See how much you can save using a Foreign Exchange Payments specialist
For transfers, you should avoid paying a Total Margin anywhere above 1.5 per cent (of the amount being transferred) for major currencies (USD, EUR, AUD, GBP, CAD, NZD, CHF etc) and 2 to 3 percent for all other currencies.
Using your Bank’s exchange rates services (both via online banking and in bank branches) to make international money transfers can be very expensive – often 5% to 6% worse than you can get by using one of our foreign exchange partner for your transfer.
Bank International Money Transfers are often 5% to 6% more expensive than using a global payment provider.
Our BER partner global payment providers deal directly with the currency markets which means they can offer highly competitive exchange rates on all major currencies, they can better the rates offered by banks – for a $10,000 transfer you could save over $500.
They can also offer you advice on timing your transaction and ways to manage currency fluctuations and risk so that you obtain the best possible exchange rate. Opening an account with the Foreign exchange provider is quick, simple and completely free.