sending money abroad

[promostamper]

what is the best and cheapest way to send money abroad? I used paypal once but their charges were high and am looking for something else less expensive.

 

[Scottish Business Owner]

If this is in a business context then I would say your own bank would probably be the best option. Making international payment can be fraught with difficulty and you have to make sure that the charges are split at both ends. Some companies insist that the sender takes all the charges which can make it very expensive.

If it's personal then I would think Paypal is probably the cheapest but your bank again is probably worth talking to. I would stay away from things like Western Union etc as I've heard many horror stories about money simply disappearing.

I think this type of transaction will always be expensive unless you have an actual account in the currency you are trying to pay in. From discussions we have had on the forums before if this is going to become a regular thing then a currency account might prove to be the best long term and cheapest option.

 

[promostamper]

for both as my brother has been made redundant in the states so want to help him and also i will be purchasing quite a few things for business purposes from abroad. the bank charges for business were quite high when i spoke to them last week.

western union i dont like as i know they will keep the money for quite a while and yes the money will disappear as i know from a colleague who used them once.

thanks i thought that there might be other options but seems not

 

[Gutsy]

Promostamper - you can look into Moneybookers.com - Send Money - Receive Money - Online Payments - Money Transfers and also Credit Card Processing & Merchant Account Services - Setcom. Not saying I endorse either of them but I've had success with both (I'm in South Africa and I have international clients).
I've recently discovered that it's not "that" expensive to do an international transfer bank to bank, from Australia to South Africa, but they had to do a minimum payment of AUD $500. Hope this helps.

 

[Mike Lewis]

I wish I knew the answer to this question. As far as I can see, services like Moneybookers and Western Union are fine for sending small amounts occasionally, but don't aim to provide a commercial service for firms needing to transfer large sums regularly (I'm not talking from experience, having never used these services, so by all means tell me if I'm wrong).

I have an on-going need to transfer funds from my company's US account back to the UK. Both the sending and receiving banks charge a phenomenal amount for an electronic transfer, and even more for clearing a cheque, and then there's the commission on the exchange rate, plus the loss you make because the rate you get is less favourable than the book rate.

My experience is that I can lose up to 15 percent to the two banks.

As for PayPal, I can't see how that can be cheaper, given the money still has to pass through the banks, and PayPal will want to make their own profit on top of that.

Mike

 

[Scottish Business Owner]

I came across this article today on Money Saving Expert. It's quite a long read but I think it has some great advice on it.

Hopefully it may save people a few quid Be interesting to see if this actually works so we can maybe put together a simpler explanation for the benefit of others.

Foreign Currency: Send or spend money internationally ...

 

[Mike Lewis]

, that's an excellent article -- the best information I've seen on the subject. Thanks for posting the link.

In fact, it might not help in my particular case, as it's concerned only with sending money from the UK to abroad, whereas I need to do the opposite. But I'm going to investigate some of the services it mentions to see what they can offer.

I especially like the way he deprecates the "zero commission" exchange merchants. There's no advantage in paying zero commission if they simply load the exchange rate to compensate.

Mike

 

[profitxchange]

We have used this service for largish sums -
Money transfers compare | One-Off Currency Transfers | HiFX plc
There service was good and not expensive.

 

[Anna]

Hello everyone,

On the subject of transferring money abroad, have you considered prepaid cards? I work on behalf of Escape MasterCard Prepaid Card which is the cheapest way to get money to friends or family abroad – done in 60 seconds and it’s for free. The card brings financial inclusion with no bank account needed plus, unlike many prepaid cards, is available to everyone.

There is lots more information on our website


And a video here which tells you how it works

Hope this helps!

 

[Mike Lewis]

Anna,

Thanks for posting this. I can imagine this type of card could be very useful for transferring funds to family members who are away from home, and perhaps for carrying on a trip for use in an emergency (if, for some reason, your usual credit or debit card is declined, for example). I might consider getting one myself if the need arises.

However, I wonder if it would really be suitable for large-scale commercial use, such as transferring thousands of pounds per month on a regular basis. The credit limits obviously won't allow that, and there's also the question of how much it would really cost. I admit that the actual cost of the card is very competitive, but the real issue is the exchange rate.

This isn't a criticism of your product. On the contrary, it appears to be very useful for its intended market. The question is whether it would meet the needs of a business like mine.

Mike

 

[PhilBen]

The best way to transfer currency large volume, is by using a Currency Broker. Banks will do the same thing but charge a lot more for doing it. A good broker will give you various contract options which can achieve better rates of exchange. A bank can't. However you do have to be careful and pick a good one. It sometimes pays to use 2 brokers to get the best rate but it will be well worth it. The process is very quick and simple.

 

[Mike Lewis]

Phil,

I see you work in the foreign exchange market yourself. Do you offer currency broker services? If not, what's the best way of finding a broker?

Mike

 

[PhilBen]

Phil,

I see you work in the foreign exchange market yourself. Do you offer currency broker services? If not, what's the best way of finding a broker?

Mike

Hi Mike yes I do fx for both private and business clients. If you would like to ask a question about how it works etc. Please feel free to ask. Also as I work on a upfront approach and on my site there are live rates etc to help you get the best rates.

 

[Mike Lewis]

Thanks, Phil. I've bookmarked your site, and will contact you personally when the need arises.

Mike

 

[PhilBen]

Hi Mike
Thanks if you need any info, feel free to contact me