Why you should use a foreign-exchange service to send money abroad

So your business partner needs some money transferred to Japan immediately? Perhaps, you wish to send your family member some cash for their birthday? Maybe a good friend of yours is stuck overseas without any cash on them?

If either of these questions are plaguing you right now, then you are about to send money abroad, which can be an extremely daunting experience, especially if you have never done it before.

However, in today’s world, an international money transfer can take a matter of minutes and it can be done without you having to get up from your desk.

There are various ways in which an international money transfer can be done, and most people tend to choose a generalist provider, such as a high-street bank to conduct such an undertaking. However, this can often be an expensive venture, especially with the high transaction fees that are often charged.

Using a specialist online foreign-exchange service offers a range of significant benefits, some of which you may have not even considered.

One of the most valuable benefits that comes from dealing with a foreign-exchange service to transfer money abroad is their ability to manage regular payments. Not only will you be able to handle everything online in a simple manner but a specialist service can also take away the task of making regular trips to the bank, by setting up repeat payments at requested intervals, almost like a direct debit. This feature can come in immensely handy if you do not have the time to visit the bank every week or month etc. It is also beneficial if you are dealing with regular payments abroad, whether that be through a business partnership, if you hold property abroad or if you need to regularly help a family member living internationally.

Perhaps the most detrimental part of visiting your high-street bank to transfer money abroad is that they are, by definition, non-competitive. This means that exchange-rates and transaction fees are non-competitive allowing for some serious accumulation of money spent, before you have even transferred any cash. In some cases, sending an international transfer through a high-street bank can accrue up to £40 in surcharges, not even counting the exchange rate. That equates to almost £500 per year if you are sending money on a monthly basis.

To combat these frankly ridiculous fees, take a look online at a specialist, corporate, foreign exchange company like Godi. As a competitor in a saturated market, they will tend to offer much lower transaction fees and adhere to the very latest exchange rate, as they are connected to live providers of rates online.

One of the most worrying features of the current financial climate, especially in the United Kingdom, is the prospect of Brexit and subsequently the performance of the Great British Pound in such a climate.

Some experts predict that very little will change and the pound will remain strong. Others are predicting that a short, albeit impactful, collapse would be on the cards when Brexit is pushed through. These two opposing ideas essentially sum up the post-Brexit climate; it is impossible to predict.

However, if you decide to use a foreign-exchange specialist to transfer money abroad, rather than a high-street bank for example, you can plan ahead to ensure that you are safe when Brexit is finalised.

Most foreign-exchange specialists online will offer you expert guidance and will also likely give you an account manager. They will be able to familiarise you with the ebbs and flows of individual currencies and can help you prepare for every outcome, depending on which way currency rates go. Some online companies in this industry will offer a strategy known as a “forward contract”. This means that you care able to fix a principal exchange rate for up to two years. While this may require a fee, it is a valuable strategy that could save you a considerable amount of money, especially if you are sending large amount of money internationally at a frequent rate.

Another valuable strategy that can be provided for you buy foreign-exchange specialists is a ‘market order’. Essentially, the customer would agree on an exchange rate that suits them, which they then ‘book’ in. This will mean that as soon as the market returns to, or reaches that agreed level, the money will be automatically sent on your behalf.

There are a number of well-respected foreign-exchange services online. However, do your research into the benefits of each before selecting your chosen company.