Business / Finance

Tips for Avoiding High Fees When Transferring Money Internationally

While smaller transactions, fees for transferring money internationally may not be significant but the same cannot be applied to large sums.

Jun 24, 2022 | By LUXUO
fiat cash
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International money transfers can be expensive, with banks and other providers often charging high fees. In some cases, the fee can be as much as ten per cent of the amount being transferred. This can be significant, particularly when transferring large sums of money.

There are a few tips to keep in mind if you want to avoid high fees during an international money transfer. Keep reading to learn more about how you can avoid the high fees when transferring money internationally.

A Multi-Currency Bank Account

A multi-currency bank account can be a great way to save money on international transfers. With a multi-currency account, you can hold money in several currencies simultaneously, making it easy to take advantage of favourable exchange rates. This can save you a lot of money in the long run, especially if you regularly send or receive money from other countries.

There are a number of different multi-currency bank accounts available, so it’s important to compare the features and fees of different accounts to find the one that’s best for you. Some accounts offer a range of different currencies, while others only offer a limited number of currencies. It’s also essential to check the exchange rates offered by different accounts, as they can vary significantly.

If you’re looking for a way to save money on international transfers, a multi-currency bank account is a great option. You can save a lot of money in the long run by comparing different accounts and choosing the one that offers the best rates and features.

Currency Brokers

When transferring money internationally, you can save a lot of money in fees by using a currency broker or specialist foreign exchange (FX) company. These companies are typically best for large transactions, such as buying a home abroad. They can provide you with better exchange rates than your bank, which can save you a lot of money on your overall transaction.

Currency brokers and specialist FX companies can also help you avoid bad exchange rates and hidden fees from your bank. They can provide you with a more competitive exchange rate and help make the whole process much more straightforward. However, you’ll need to compare companies to ensure you’re getting the best deal on your exchange. This can be done by using a comparison site or getting quotes from each company.

Digital Banks

There are many digital banks that allow you to transfer money internationally without paying high fees. Some of these include Wise and Revolut. These digital banks offer low or no charges for international transfers, which can save you a lot of money.

Another advantage of using a digital bank for international transfers is that you can often do them instantly. This is in contrast to traditional banks, which can take several days to process international transfers.

When transferring money internationally, it’s important to compare the fees charged by different banks in order to find the best deal. By using a digital bank, it’s possible to save a significant amount of money on fees. So, if you’re looking for a way to save on fees when transferring money internationally, a digital bank is a great option.

Avoiding Fees When Transferring Money Internationally

Overall, it’s vital to be aware of the various fees associated with transferring money internationally in order to avoid paying more than necessary. By considering the various fees and exchange rates and comparing money transfer providers, it’s possible to save a significant amount of money when transferring money abroad. Some of the best ways to avoid high fees are to use a multi-currency bank account, currency brokers, or digital banks.

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