These are the main areas to look at when comparing transfer companies:
Exchange rates:
To get the best money transfer rate to Bangladesh, you’ll want to look for one which is closest to the ‘mid-market’ rate, as this will be the cheapest exchange rate available. The mid-market rate is halfway between the buy price and sell price on the international money markets. The closer to the mid-market rate on offer, the more taka you’ll be able to buy to send overseas.
Banks and other companies make their money by putting a ‘markup’ on the exchange rate. This means they don’t give you the mid-market rate, but a lower exchange rate. The difference between the mid-market rate and how much extra is charged is known as the ‘margin.’ Banks impose a bigger margin than transfer companies do. It’s crucial to compare exchange rates when completing your transfer to Bangladesh to help ensure you maximise the funds received at your destination.
Fees charged:
In contrast to bank fees of $6 to $30, transfer companies either charge a set fee of up to $15 or a percentage of the transfer amount, which may be in the region of 0.40% to 0.65% (such as Wise.) This compares very well with credit cards, which can charge between 3% and 5% in transfer fees to do an international transfer.
Consider which fee structure is best for the transfer you’re looking to make to Bangladesh. Set fees are usually cheaper for larger sums, while percentage fees work out to be cheaper for smaller sums (such as under $5,000). For example, a 0.5% percentage fee on a transfer of $500 is only $2.50, which makes for a cheap transfer. However, the same fee on a $20,000 transfer is $100, which is far higher than a set $15 standard transfer fee. This illustrates that the charging method for your transfer is very dependent on the amount you wish to send to Bangladesh.
Countries serviced:
Check that the company you choose can send money to Bangladesh and to the region you have in mind, as not all companies offer a transfer service to all countries and destinations.
Speed of transfer:
Whereas a bank will take between three and five working days or more to transfer your money, an international money transfer company will on average get it there between 0-2 days. Many transfer companies will get your money to Bangladesh the same day, if not instantly, so it’s crucial to compare transfer speeds between different providers and methods (particularly if you need your money to arrive urgently).
Payment method:
Look at what payment methods are offered. These range from paying for your transfer in cash, using a debit card through PayWave, EFTPOS or BPAY, using a direct debit from your bank account, or via a digital wallet such as ApplePay. Be aware that if your default card in ApplePay is a credit card, you may end up paying expensive credit card transfer fees.
Receival method:
Think about how your recipient may want to receive their money. This ranges from a cash pickup to funds deposited into their bank account, transferred to a card in their digital wallet or sent to their phone either through a transfer app or as a pre-paid recharge.
Transfer limits:
Most transfer companies have minimum and maximum transfer limits. These range from minimum limits of $1 to $250, to maximum limits of $5,000 a day right up to $500,000 or more. Make sure the company you choose has limits that fit in with your needs.
