If you’re looking to convert USD to AUD, AUD to Euro or perhaps GBP to AUD, you may have some idea of the amount you’ll receive on the other end, thanks to online currency convertors.
The rate that you have been presented with here, however, is probably not, what you’ll actually receive for your transfer. There are various things, like additional charges and poor exchange rates, which can affect how much money is actually ending up into the account on the other end.
So, how do you get the most out of your currency conversion, without a chunk of it being swallowed up in hidden fees and poor exchange rates?
Here are some handy tips to help you get the most out of your international money transfer:
1. Using your bank to transfer money
Although this may be your first port of call, using your bank to send money internationally is one of the biggest mistakes you can make when transferring money overseas.
Banks are notorious for charging unnecessary fees and offering customers bad exchange rates –which results in less of your transfer reaching its destination.
For example, with a $10,000 transaction to US dollars, banks could add a margin of up to 5 per cent on the interbank rate, in addition to their transaction fee – overcharging customers by up to $400 more than specialist money transfer providers, like WorldFirst.
2. Do your research on currency transfer providers
Now you know better than to use your bank for currency transfers, such as USD to AUD, it’s time to find a specialist provider who will give you the most bang for your buck.
So what qualities should you look out for?
– A provider who can offer better exchange rates than the banks
– A dedicated account manager to facilitate your currency transfers
– Fast and secure transfers
– Award-winning customer service
– Ability to make a currency transfer online 24/7
– Global presence across multiple major cities
3. Know your options when sending money overseas
If you’re in a hurry to send money to the US, or anywhere else for that matter, taking out a Spot Contract – a rate based on the live exchange rate on the day – will allow you to make a payment instantly.
With WorldFirst, there is even a best rate guarantee, to ensure customers get the biggest bang for their buck.
If you’re not ready to send USD to AUD, or any other currency parings, just yet, but want to lock in today’s exchange rate, you can secure a Forward Contract. A Forward Contract allows you to ‘fix’ an exchange rate for up to two years – even if it fluctuates significantly.
4. Understand currency convertors
Currency convertors typically show the Interbank Rate, rather than what you actually receive when you transfer your money.
The Interbank Rate is the rate that banks use when they transfer currencies between each other, and this rate changes by the second.
When a bank publishes their buy/sell rate for a currency pair, a margin of up to 5 percent is often added to the Interbank Rate. WorldFirst allow you to transfer your money overseas at a much lower margin than the big banks, and in turn, customers can receive exchange rates up to seven times cheaper than the big four banks.
To discover how to get the most out of your overseas money transfers, whether to friends and family or for investment and business purposes, speak to a WorldFirst currency specialist today on 1800 835 506 or visit worldfirst.com.
Disclaimer: These comments are the views and opinions of the author and should not be construed as advice. You should act using your own information and judgement. Whilst information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. Please consider FX derivatives are high risk, provide volatile returns and do not guarantee profits. We have no commercial affiliation with any organisation or commercial interest regarding the venues mentioned in this article. The information is only provided as gathered and should be verified before, using your own judgement.
*Although WorldFirst has prepared the Information contained in this website with all due care and updates the Information regularly, World First does not warrant or represent that the Information is free from errors or omission. Whilst the Information is considered to be true and correct at the date of publication, changes in circumstances after the time of publication may impact on the accuracy of the Information. The Information may change without notice and WorldFirst is not in any way liable for the accuracy of any information printed and stored or in any way interpreted and used by a user.