People send money abroad for various reasons. The problem is exchange rates fluctuate so much that those who do not pay attention could end up losing value.
Sending money sounds simple enough, but those who want to do this right are going to have to be a little more patient to get the most out of each buck. The following are a few tips worth taking into consideration before transferring money abroad.
1. A Need for Regulation
One thing that is important to pay attention to when sending money abroad is regulation. The broker, bank, or financial institution that is going to handle the transfer needs to be governed properly by the right agency. This is necessary so that customers and receivers are protected. A person who is thinking of sending money from one location to another needs to make sure the entity used is insured and licensed.
The problem is figuring out if an entity is regulated can be a little confusing, depending where the financial institution is. For example, financial entities in the UK are regulated by either the Financial Conduct Authority agency or the Financial Services Authority. It is imperative that customers make sure entities in the UK have been issued licenses by these government bodies before transferring money through them.
Each country is different, so make sure the agency responsible for insuring these types of financial institutions is found. The US uses agencies like the Federal Deposit Insurance Corporation. It may be a good idea to check the local citizen services office in the country to find out who insures these types of companies. This step may take some time, but it is worthwhile because it protects the money handled by the entity.
2. It is All About Timing
The value of currencies fluctuate constantly. The money from one currency could translate into more money in another currency and be worth less the next day. Naturally, most of us want to exchange money when it is worth the most to get the most out of our currency.
The problem is predicting the best time to transfer money, which is not easy. The best thing people can do is follow the market, but instead of paying attention to the price of the day, they must pay attention to the pattern.
If the pattern seems favorable and has been the same for a few days, then it might be okay to wait until the rate is favorable. Now, if the pattern looks like it is going down, then it might be time to just transfer the money immediately.
Of course, if numbers look low for days, then it might be a good idea to simply wait it out until the numbers look more attractive.
A person who is thinking of transferring money should have an app installed so that a transfer can be initiated the moment prices look favorable. Consider installing the Western Union app, which also shows up-to-date currency prices to help make the most informed decision.
3. Exchange Rates and Fees
Exchange rates and fees change from institution to institution. It is important that anyone who is thinking of transferring money abroad pay attention to these rates and fees before settling with a particular financial institution.
Generally, the worst financial institutions are large banks. These types of institutions are not really in the foreign currency exchange business, so they do not always pay enough attention to the market to give customers the very best prices.
These institutions sometimes have higher fees than financial entities that focus on currency exchange. It is important that customers ask to see all the fees they are going to have to pay for each institution being considered. Once all the numbers are accounted for, the customer can simply compare to make sure they are choosing the very best option.
Customers are going to have to do the same thing with the exchange rates because these also change from financial entity to financial entity.
Keep in mind that fees and exchange rates do vary from time to time, so even even if customers have found a financial entity they like, it doesn't mean they shouldn't look at other institutions periodically to make sure they are still getting the best deal possible.
Hopefully, these tips help people who need to send money abroad. Remember, there are professional foreign transfer specialists out there, who can offer even more perks for people who transfer money regularly.
Hiring one of these individuals can be beneficial because this professional will pay attention to the currency market for their clients. These individuals may even waive fees usually associated with these types of transfers. We think it can be a wise option for those who might need this help.