International currency exchange can sometimes seem like a daunting place so here are some fun images that help explain international money transfers.
However, before we begin, we need to be sure that you’re ready to discover the truth about sending money abroad . . .
Reasons For Sending Money Abroad
There are many reasons why you might need to send money to another country.
These reasons include:
- Paying a mortgage back home when you live in another country.
- Paying overseas staff or overseas suppliers.
- Pay a bill in another country (like the rent on a summer holiday home).
- Paying your foreign university tuition bill.
- Buying an overseas property.
- Sending or receiving payment for work done as freelance worker.
- Receiving a monthly payment such as a pension payment from your home country.
Hmmm . . . it’s never fun sending money away is it . . . ?
As we described in this post on how to wire money abroad, the old way to do an international funds transfer was to head down to the bank branch during your lunch break only to discover that there’s a long queue and you’ll be standing there for 20 minutes before you even get to speak to someone.
When you finally get to the counter you get served by a very bored bank teller who doesn’t actually know how to do an international money transfer. So he asks his colleagues who are equally as bored and they don’t know either. One of them phones Head Office and after about 15 more minutes of wasted time, they finally get your transfer started.
When it is finally completed, you are informed that you have sent less money than you planned to because they charged you a large upfront sender’s fee. They also used an unfair exchange rate that took 5% of your money away.
And you run out of time to get your lunch.
Why Not Just Use PayPal?
Other people avoid banks by going online and use the expensive PayPal with its nasty exchange rate to transfer money to another country. Unfortunately, some people still believe that Paypal is free for currency exchange. No, it’s not – it’s actually very expensive.
If you’re looking for some more background, we explain all about PayPal and the other money transfer options in this comparison article.
Beware of ‘Commission Free’ Currency Exchange
Many people get fooled by claims of ‘commission free’ currency exchange – don’t be one of them.
Some people use banks, post offices and even currency brokers like the guys you see on Wall Street. Many of those companies will try to offer you a wonderful thing called “Commission Free” currency exchange or offer to send your money at “Zero Per Cent Commission” which sounds very nice of them indeed.
But ask them this: How wide is your exchange rate spread? Or, ask them: How far away from the interbank rate is your exchange rate? You might get an interesting answer.
By the way, the reason CurrencyFair’s exchange rate commission is so tiny is because we don’t have physical branch offices to pay for and also because of our world leading peer-to-peer system – otherwise known as money matching. you should check it out – it’s why we’re so cheap and why our customers love us.
So, don’t get caught out by those dodgy ‘Zero Per Cent Commission’ claims.
The Problems You Face When Not Using CurrencyFair
The first big problem you face if you’re not using CurrencyFair is that you are losing money.
Banks, brokers, PayPal and other such money transfer options all have an expensive exchange rate that strips away chunks of your money every time you make a transfer. Of course, banks and other companies often then charge you a large up-front fee for the pleasure of sending your money away.
That makes you feel annoyed, very annoyed.
Another problem is the delay in your money actually arriving at your chosen destination. It’s not unheard of that banks can take many days and sometimes even weeks to move your money – even though they’ve supposedly got “global reach” and high tech systems. Click here to see how fast we are at CurrencyFair.
Seriously, banks need to start showing us the money a lot faster.
One not-so-mentioned but hugely frustrating problem is the fact that with banks, PayPal and other companies, if your money still hasn’t arrived after you sent it days ago, there’s no-one you can call.
You can try to phone their corporate switchboard and then wait for the recorded message to tell you which option to press and then wait in a queue for half an hour only to discover that their “Customer Service” person has no idea what you’re talking about.
Ever felt that frustration?
How Will You Feel When You Use CurrencyFair?
You’ll love the fact that your money arrives quickly. You’ll also feel secure in the knowledge that if you have any questions, you’re just a phone call, email or Facebook message, or Tweet away from reaching the lovely, friendly folks in the CurrencyFair customer service team.
How will you feel when you use CurrencyFair?
Oh yes, you’ll feel on top of the world!
See how CurrencyFair compares to other money transfer companies