There are many ways to compare different international money transfer services, with some of the key features including:
Exchange rates
The exchange rate you’re quoted will have the largest influence on your transfer, as even a small difference in the rate can have a huge impact on the amount of money you end up sending overseas, particularly if you’re making a large transfer. That’s why it’s so important to compare exchange rates with Savvy before making your transfer decision.
To get the best deal on your international exchange, look for a company which offers an exchange rate as close to the mid-market rate as possible. This is the ‘true’ exchange rate, which falls halfway between the buy price and sell price on the international currency exchange market. The closer your exchange rate to the mid-market rate, the more foreign currency you’ll be able to buy with your Australian dollars.
Fees
Next, look at the fees you’re being charged to transfer the money. There are three main ways that international money exchange companies make their money:
- They charge a flat fee for the transfer (up to $15)
- They charge a fee which is a percentage of the transfer amount (typically from 0.4% to 0.5%)
- They don’t charge a fee but add a margin onto the exchange rate
All of these methods of charging for international transfers will probably end up being cheaper than using your traditional bank, as banks charge fees anywhere between $6 and $30 to complete a transfer from one bank to another overseas. By comparison, an international money transfer company may charge a fee of less than $5 to make a small transfer.
In general terms, flat-fee charges are the best for larger transfers and percentage charges are more economical for smaller transfers. Make sure you’re aware that some companies have minimum and maximum transfer limits, such as minimum limits of $200 to $250, maximum limits anywhere from $50,000 to $500,000 or more and occasionally a daily limit of $5,000.
Countries and currencies
It’s vital to make sure the company you choose offers money transfer services to your preferred destination in the currency you require. You can check this fact by going to the company’s website and looking at their list of countries serviced.
Transfer speed
The transfer time and speed of delivery of an international transfer will vary from provider to provider and based on the destination of your transfer. High-volume destinations from Australia, such as the UK, USA, New Zealand and India will often transfer more quickly than if you send money to a less common destination. Transfer times for money exchange companies range from zero to two days in most cases (but can reach up to five days), with some able to have your money available overseas in a matter of seconds.
Payment methods
Some companies can be paid in cash, while others require payments to come directly from a bank account. Some will allow payments by cards, while others require bank details. Make sure you check whether the company you choose offers the payment method which suits you most.
