Are you working abroad but want to send money to family in your home country? Or perhaps you have invested in property in another country and need to transfer a large sum of money? These are just a couple of the reasons why you may be in the market for a money transfer service.
Sending money to Nigeria, Malaysia, or any country for that matter, has become much easier than in the past. Your options are better today than they were 10 to 20 years ago when banks were pretty much the only option you could consider. Today, you can choose between a foreign exchange broker, a transfer firm, or a bank. Choosing which of these 3 is best for your case can still be confusing for some. The following are a few simple questions you can ask yourself that will help you narrow down your priorities and come to a solution that will work for you.
What fees are involved?
The first question you should ask is regarding the fees involved with your money transfer. Generally speaking, banks charge the highest fees for money transfers abroad. So that makes foreign exchange firms and money transfer firms a better deal on the surface. For example, to send money internationally via PayPalseems to be a decent deal at first glance. But a 3.9 % transaction fee can quickly add up if you’re transferring the down payment for a new house.
Consider what fees are involved with the establishment you are considering. But also take into account the amount you’re trying to send. One institution might give you a good deal for a small amount, while another institution might be a better option for sending a large sum.
What is the currency exchange rate for this transaction?
This is often where seemingly low-cost money transfer firms make their money. For example, an institution might quote a very low transfer fee, but then charge a high currency conversion rate. Or exchange your money at a few points below the current exchange rate. You’re left with less money than you had previously, mainly because you did not look into this aspect of your money transfer. Always ask about possible currency exchange rates and fees.
What’s my transfer limit?
Most banks have a transfer limit on the amount you can wire per day. If you need to make a larger transfer, you are often required to call in and receive an access code so that you can begin using their transfer service. This is to protect your account from cases of fraud. If you are using a money transfer or foreign exchange firm, your transfer limit may be determined by the type of account you opted for. Which is a way for the institution to encourage you to opt in to their premium level accounts. Ask about what your limits are and find out if you’ll be able to send the amount you want within the time you need it to get there.
How quickly will the transfer be made?
If you’re dealing with a family emergency, or need to close a sale on a property, then you want your transaction to be completed as soon as possible. Ask about how quickly the recipient will see the money. And evaluate whether that is an acceptable amount of time for you. If not, find another money transfer service.
What requirements are there to make a money transfer?
Most institutions will require that you open an account with them in order to use their service. Creating an account often requires the following:
- telephone number
- place of address and proof of address
- ID/social security number
- minimum deposit
Though these requirements may differ from institution to institution. Once you have your account set up, you need the recipient’s bank information to complete an international money transfer. That includes the following:
- name and address of the recipient
- recipient’s bank name, address, and SWIFT/BIC code
- recipient’s account number or international bank account number
Once you have the answers to the above questions, you are ready to make that transfer with all the facts needed to make a wise decision.