What does it cost to transfer money abroad?
The cost of a currency transfer consists of a transfer fee, this is a set cost for the provider to facilitate the transfer of currency to a bank account. And there is also the exchange rate, which determines how much of the currency which you are buying you will receive. Additional fees can often be paid for a faster transfer and some banks and companies can charge a standard charge for a transfer below a specified amount.
How is the exchange rate I get calculated?
Exchange rates are linked to the live foreign exchange markets. All exchange rates fluctuate throughout the course of the day and the precise exchange rate you will receive is calculated at the moment you perform a transaction.
Exchange rates available online are often the interbank rate, which is not available to consumers and therefore is not a rate which you will receive. However, it can be helpful to track these rates to give an indication of how the currencies are performing – which you can do so here.
When is the best time to transfer money abroad?
It is worth stating there is no best day of the week, month or year to buy currency. It is possible you will only know the best time to have bought at once it has passed by which time you may have missed out.
The currency markets are unpredictable and even with all the research in the world, it is impossible to get the timing absolutely spot on. Having said that, it is important to make the best plans you can. Leaving everything completely to chance is not a good strategy and could mean you end up paying a lot more than you perhaps should have.
Often targeting a particular level that has been within your budget can make sense. With an overseas property purchase once you have bought the currency you will know what it costs and can guarantee it will not suddenly get more expensive. Such reassurance and peace of mind can be invaluable when having to move such large sums.
There are a number of contract options that can help you guarantee the exchange rate you get. Learn more about contract options here.
Transferring money overseas can be very simple. You could use a high street bank. Alternatively, specialist companies such as Lumon provide competitive rates and various products, whilst also having significant experience having helped thousands of clients send money abroad. At Lumon we have a simple process:
- Open your Lumon account here and a member of our team will then get in touch to discuss your requirements. Once your account is open and you agree an exchange rate, the process is very simple.
- You will receive a contract note via email which will contain all the details of the transaction, our bank account details for you to send us the monies. You then need to tell us where you would like your currency sent, whether that be your bank account abroad or someone else’s.
- Once a currency conversion is agreed we ask for you to send us the money within 2 working days, and then we will send your currency out to your chosen bank account.
If you would like any further information about how to transfer money abroad please feel free to call us on +44 (0)203 384 7280.