Like most graduates after University I decided to ditch the job hunt and take to the open world of travelling. However the one mistake I made was not researching the exchange rate and money transfer possibilities. The problems I encountered, inspired me to write this short article on what procedure to take before thinking about travel money.
I would say it is essential that you have the knowledge on how to find the best deals on foreign currency. A recent survey revealed that 35% of UK travelers had found themselves out of cash overseas. Only a meager 4% of respondents said that they made sure that their top priority was to have access to foreign currency while abroad.
A lot of travelers, on business or leisure alike are likely to leave planning for foreign currency until the very last minute. It is seen as a less important issue than making sure medical insurance has been secured. However a lack of planning usually results in a poor exchange rate and less cash for the majority.
Travelers usually have their money exchanged in a railway station or at the airport. This will definitely tarnish your success rates of being able to receive a good deal. Especially because of the high commission rates and the less favorable exchange rates.
The common factors concerning international money transfer are: how much will it cost? How long does it take? How secure is it?
In today’s economic climate we always want the most from our money and exchange rates, especially during the summer months as holiday money is limited. The main aim is always to buy foreign currency as cheaply as possible which means at the best rates available. When considering your options, look at what is available and how beneficial a service can be both long-term and short-term.
Banks and travel agencies have their own charges and their own currency rates. These differ and you may get less for your money depending on the rates so it’s worth seeking advice, ensuring you get the most out of your hard earned money.
How much does it cost? The cost of an International Money transfer depends upon the rates at the particular time of transfer; therefore, timing is key especially for larger orders. There is not usually a set up fee involved; however there is normally a bank processing fee that varies. Banks can charge anything up £40 to make a transfer, whereas internet companies tend to keep it around the £15 mark.
Large one off transfer
If the sum of money being transferred is greater than £1,000, it is usually the internet transfer companies that offer the best deals. Some online foreign currency exchange brokers offer a free money transfer for new customers which means that you can also save even more money than going directly to your bank. Online dealers will work there hardest to find you the most competitive exchange rate deals.
It is always a good idea to look for offers that are usually displayed from internet exchange brokers.
If you shop around you can get first time promotions including ‘free transfers’ and lower commission rates. Don’t worry about not knowing how to send your money, the company dealing with your request will advise you of the simply process step by step.
International money transfers are also highly important within the business trade and many companies forget to focus on their strategy for foreign exchange. Paying suppliers, manufacturers, wholesalers and events management are common occurrences.
Getting this wrong could prove to be a costly error, especially if you are not up to date with market news, your money could be at risk to movements in exchange rates. Online corporate foreign exchange services offer advice on when the best time to trade is as well as a wide scope for negotiation, particularly for high volume customers.
If you are transferring money for your personal use make sure you shop around, and do your homework to obtain the best deal possible. A little time spent doing this could save you a fortune in the long run, especially if you are considering setting up regular payments abroad.
About the author
Elle Smith – traveler and graduate of Hull University