Transferring money overseas can be incredibly expensive. It can also be really confusing, trying to work out the best way to do it.
These guides will take you through what options are available, explain all the fees, charges and exchange rates.
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Why Are You Transferring Money Abroad?
Transferring a Large Amount of Money Overseas
When it comes to money transfers, transferring larger amounts overseas is different.
If you are sending more than $20,000 internationally, it’s really important to choose the right way to transfer your money. Getting it wrong usually means you end up paying massive fees and charges.
Fees and charges: What to look for
While there are many fees you may be charged, these to are particularly important with bigger transfers
|1. Exchage Rate Margin||2. Transfer Fee|
|The exchange rate margin is by far the most common and most important thing to consider with larger money transfers. Simply put, the exchange rate margin is the difference between the wholesale rate you see on google or xe.com and the actual rate you receive.||Most banks will charge a flat fee to transfer money overseas between $18-32. Other money transfer companies like OFX or World First charge between $0 and $10. TransferWise charge a percentage based fee of between 0.5% and 0.7%|
Sending Money to Family and Friends
Learn about the different ways you can send money to family and friends overseas. When deciding what way is best for you, make sure you compare the exchange rates, fees and features before sending your money.
Using A Bank
Online Money Transfer Specialists
No Bank Account? Cash Pick-up Options with Western Union or Moneygram
Sending Money to Family Overseas Using Paypal
How to get a good exchange rate when sending money to family overseas
1. Research the live exchange rates.
Find out the wholesale exchange rate , it will give you a benchmark to compare the exchange rates between money transfer companies and banks.
2. Compare exchange rates online.
The tool below helps you compare exchange rates between banks and money transfer specialists. Save time and do it all under a minute.
3. Be informed of cheaper alternatives.
A trusted company like OFX provides a cheaper option to transfer money overseas.
Buying or Selling Property
Whether you have sold an investment house in the USA or a unit you bought while working in the UK, the whole process can be riddled with hidden costs. Once the property has settled and you need to get the foreign currency back to Australia, you have a few choices of how to do it.
Transferring money after a property sale is a big deal. Because of the size of your transfer, the small difference in exchange rate when you send the money can work out to be a huge difference in overall cost.
This guide will take you through the most common methods of getting the money back into Australia. It details the pros, costs, benefits and costs of each approach.
The 3 Most Common Ways of Transferring the Proceeds of Your Property Sale Back to Australia
1. Get a Cheque
2. Local help
3. Use a money transfer company
Living and Working Abroad
Life as an expat is exciting but it also has unique challenges.
If you’re an expat sending money overseas, some basic knowledge helps you compare exchange rates and avoid some of the common problems.
Here are 5 common issues you may face – and some tips on how to overcome them.
1. Poor exchange rates
The rates listed as ‘official’ refer to the interbank rates and the fact is, you can do better if you shop around. By choosing a bank for your foreign exchange, you’re also choosing a different rate for both buying and selling and often a sizeable commission added on top.
Beware of banks that charge flat fees for each transfer. If you send money overseas regularly, you may end up spending a small fortune in fees.
3. Lack of personalised service
When you choose a big financial institution to look after your foreign exchange conversion, you may find you get lost in the mix. Instead, consider looking for a local currency exchange expert and aim to create a positive, personal relationship. With some genuine customer service, you can have your questions answered to help you make the best currency conversion decisions that minimise your costs.
4. No access to hedging tools
This isn’t about gardening – just trimming costs. Hedging tools limit your exposure to the fluctuations in foreign currency that can add up to wasted dollars.
Reduce Unwanted Fees – Maximise Benefits
Transferring money shouldn’t be a negative experience. With the right information at your fingertips and a professional currency conversion expert at your disposal, you can boost the potential benefits and minimise your risks. With the right foreign exchange specialist, it is possible to:
- Achieve a spread of 1% – and even lower
- Reduce or remove fees
- Create a strategy for purchasing currency
- Access hedging tools. These types of contracts enable you to buy currency at a fixed rate for a set period of time – often 1 or 2 years. With your rate fixed, you will avoid the stress of market volatility and have a clear idea of what you will pay and how much you will receive in exchange, before each transaction is completed.
Which company is best for expats?
What we looked for include:
- The ability to make regular payments
- Customer service that is dedicated and personalised
- No (or very low) fees
- Impressive exchange rates
If you are an expat, look for a professional currency provider in your local area by asking some questions that matter to you – and ensuring you are happy with the answers provided.
Choose a provider that suits your needs and won’t cost you a fortune in either precious time or money. For any other questions about foreign exchange issues for expats, call our office and speak to our experts at The Currency Shop.
Finding the right option
The Currency Shop offer free personalised advice via phone, email or even face-to-face if it all seems a bit overwhelming. Explore our website or give us a call on 1800 004 930.
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