The following is a guest post. Enjoy!
Banks can do a lot of things. But this doesn’t mean they do all things very well. Banks get a lot of business by being the only well-known game in town. They get more business by being a one-stop shop for all things financial. While this will be convenient for customers pressed for time and in need of a diverse set of financial goals, it’s not the best way to save money. This is nowhere better seen than when considering a bank’s currency transfer services.
Big banks are increasingly international. It’s very likely that at least one of the corporation that keeps or manages your money is, or is owned by, a multinational company commanding debt all over the planet. Because of this massive and far-reaching infrastructure, banks like this can easily convert one currency for another, anywhere their network reaches. For customers who have never explore the currency transfer industry, this may seem like the only way money is transferred across the globe. The reality couldn’t be further to the contrary. There are many alternatives to this model, and they’re used by the rich, the poor, and even national governments. If the Feds aren’t using Big Banks to transfer their money, why should you?
Because banks corner the market in a segment of this industry, they can charge what they want. While not entirely exorbitant, the typical fee associated with banking currency transfers is far too high, often causing average customers anywhere from 6-10% of their total transaction, if not more. This is a lot of money lost for anyone, especially if the money being transferred is for a friend or family member overseas, as in the remittance industry used by migrant workers and other people without much money to spare. The situation is no better for customers with a lot of money to send. If you’re sending tens or hundreds of thousands of dollars overseas, you can’t afford to lose the hundreds or thousands of dollars some banks charge for the simple procedure.
There is a new generation of money transfer companies. They offer dedicated dealers who can help you strike at the precise moment when exchange rates are at their most affordable. The transfers they perform are faster than the ones done by the typical bank. Their fees are typically very low, often waived if the amount you are sending is sufficient.
In conclusion, you lose money when transferring through banks, and you lose it in a few different ways. 1) You lose money when you pay a fee that is too high. 2) You lose money when the bank doesn’t help you find the best rate. 3) You lose money when the transfer takes too long (time is money). The conclusion is clear. With so many new companies clamoring for your service, take advantage of all of the ways they’ve made this industry so much better for the typical currency transfer customer.
