8 Vital Things To Consider Before You Transfer Money Abroad

Finance August 19 2022

By: Kyshi Team

People send money across international borders every day. Global reports show that people sent over $600 billion in 2021. However, while some people seamlessly transfer money overseas and enjoy certain benefits, others don’t find it very convenient. 

Before we go on, it is essential to note that there are different means of sending money overseas. If you want to send money internationally with ease and speed, you should read this article.

1. Foreign Exchange Rate

The foreign exchange rate is the first thing you want to check before sending money abroad. Like, who is not conscious of the current rates before sending money across borders? 

Urrh, here’s something that you need to know. The Forex market is one of the biggest industries, and it processes up to $4 trillion worth of transactions everyday. Traders and companies go in and out of the market every second, making it very volatile. According to studies, most of its trades are done on speculation. This means that virtually everyone in the market is vulnerable to currency fluctuations. Knowing the current exchange rate is not to make you panic. Rather, it helps you to find the best service that offers favourable rates.

2. Transaction Fees

You will agree that everyone is looking for the cheapest way to send money internationally. So apart from exchange rates, you also want to know the transaction charges. Every forex intermediary (bank, forex broker, or money transfer company) charges a fee on cross-border transfers—some charge as high as 5% on every transfer, and some are lower than that. Therefore you have to be sure that your supplier does not charge exorbitantly so that you can save yourself some cash.

3. The Reputation Of Your Money Transfer Intermediary

These days, currency transfer intermediaries are becoming more reliable compared to banks. This is because they offer better benefits compared to these banks. However, it is vital to survey how legal and authorized a currency specialist is before dealing with them. You really want to avoid money transfer frauds. Checking for authorization is not a complicated process, as you can always ask for their licence details just to be sure of their legality.

4. Customer Service Quality

A foreign transfer medium is expected to have reasonable exchange rates and low fees. But aside from them, one of the important things to consider before sending money abroad is the customer service quality of the service provider. You do not want to get stuck if your transaction fails or your money gets hooked somewhere. You need a human to answer your questions when you have any doubts or confusion. This is why we recommend that you look out for certain qualities in an intermediary's customer service; attentiveness, good product knowledge, good communication skills, empathy and patience.

5. Communication With FX Experts

If you are someone who regularly sends money abroad, you need to communicate with professionals in the foreign exchange space. The reason is that, as stated earlier, the foreign exchange market is very volatile and quite unpredictable. These professionals can easily give you an advantage over other people in the market by giving you market signals, rate alerts and informing you about market conditions.

6. Ease Of Use

We are in the technology age where no one wants to stand in a queue to transfer money. The rise of fintech solutions worldwide has created ease in the world’s financial and economic sectors. Now, you don’t need to submit forms and certificates or licences before you can send money to someone in another country. Instead, all you’ll probably need to upload is your ID, address, and a few necessary details for compliance. And boom! You’re all set to start sending money to your beneficiary abroad. So, yes. You want to make sure that the money transfer service you are using is very convenient and really easy to use.

7. The Speed Of Transferring Money Abroad

Times have changed, and technology is the driving force of international money transfers. So, while fintechs promote ease of transactions, they also facilitate speed. Would you like to wait five hours before your money gets delivered to your loved one? For sure, you wouldn't. So, you need to consider the delivery time for your transfer before opting for any money transfer service.

8. The Terms And Conditions Of The Transfer

Every money transferring medium (bank, forex broker, or money transfer company) has its terms and conditions. You really want to read them to avoid getting hooked or being stuck in unfavourable situations. Besides that, understanding their Ts&Cs will help you make a better choice on what transfer service you will use.

Conclusion

You do not want to miss out on making thorough necessary checks before you send money abroad. It doesn't hurt to be very careful, so you might want to consider these factors before sending funds internationally.

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