If you are planning to move
overseas or want to send money offshore, international money transaction may give
you a real headache, especially in times of emergency. The worst thing
experienced by many is loss of thousands when they send money or receive the
same from overseas. They lose because they have poor knowledge regarding
exchange rate and transaction fees. However, this loss can be easily averted if
you gather some knowledge in this regard and keep yourself updated with the
latest happenings in the money transaction market.
Is there any hidden fess?
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Send Money Overseas |
There are two important
instruments for money transfer – transfer fees and the margin levied on the
exchange rate. Anxiety over exchange rate takes the better of the laymen and
they are completely unaware of the fact that exchange rate is actually ‘hidden
fee’ and this is the area in which the banks and other currency converting
institutes make money.
What these transfer houses do is they sell currency at much above the interbank
rate. This ‘plus’ is called margin and it determines the profit they make. Use
currency converter so as to know the difference between the interbank rates and
quote rate. It will help you assess whether you have made a good deal or not.
Know how to take protection against currency volatility
Do you
Send Money Overseas more than often? If it is so, then you may be a
lot worried about frequent volatility in exchange rate. In order to protect
yourself against currency volatility, you should go for ‘fixed rate’
arrangement. In that case, you need to pay 5-10 percent as deposit and the rest
is paid throughout the valid time period (generally 12 months) when you
actually make money transaction.
Consider foreign exchange through bank and non-banking houses
Generally, ordinary people prefer
the banking hubs when it comes to international money transfer. If you are
transferring money too often, then bank is a good option. But if millions of
bucks are not involved in transaction and you are moving money far between,
then you can contact any organizations dedicatedly doing currency transactions.
These organizations are no substitute for banks but in reality, offer high-end
service. These organizations have several experienced brokers who understand
your needs, keep watch on the market exchange rate and finally determine the
right time for money transaction on your behalf.
Buy currency when the rate matches your ‘budget rate’
This works best for those who are not in a hurry to move
currencies immediately. It is better to team up with a broker. Determine a rate
that you want to achieve. However, your target must be realistic. When the
market rate hits that figure, your broker will purchase the currency for you.
Do market research to get the best deal
There are several currency
organizations operating in the market and all of them claim to offer the best
service. It is better to check if there is any verity in their claims,. The
best way to do this is to open an account with three or four organizations. It
is a free process and puts no obligation on you to trade sooner or later.
If you are shopping for a good
rate, then engage a broker to do the job on your behalf. The exchange rate
takes only a few days (2-3 days) to change, so make sure to be nimble at
shopping!
So, follow the above-stated simple tips and save
a tidy sum on your overseas money transaction!