7 Affordable Ways To Transfer Money Internationally

0
14
International payments are the
new norms of modern society. We sometimes need to transfer money abroad to our
family, friends, shopping, or any other business. All thanks to an abundance of
apps, services, and financial technologies explicitly related to foreign
payments. If you had tried every transfer method, you know it is not as
straightforward as it seems.

7 Affordable Ways To Transfer Money Internationally
7 Affordable Ways To Transfer Money Internationally
Many factors involved while
transferring money, such as exchange rates, service fees, and the time required
reaching money to the recipient. These factors vary for different services, for
example, using your bank to transfer money is the most convenient and easy way.
The major drawback is it can be quite expensive. Luckily there are great
alternatives where you can save money; you have to choose the right options
according to your needs. Let us break down for you, 7 affordable ways to transfer
money internationally.

1. Peer-To-Peer Transfer

Peer-to-peer (P2P) platforms are
the latest revolution in the field of money transfer services. These P2P
services
allow users to safely exchange currency – cutting banks and fees
out of the exchange. P2P networks work on digital exchanges of currencies
rather than physical ones. The individuals can trade between themselves without
involving middlemen like banks, forex services, and other financial
institutions.

The advantage is that users can
get a better rate on their exchange without incurring any extra charges. You
have to register on a P2P exchange service platform to make deposits. Depending
upon websites, you can accept the current exchange rate or bid on others
according to your choice. The site then automatically matches you with sellers
and displays a change in the ownership of the funds. And within a day or two,
it remits the funds through domestic transfers.

You sell whatever currency amount
you have, making an exchange. P2P services are beneficial for larger funds
transfer – i.e., more than $500 but less than $7000 USD. Transactions are
particularly convenient with common currencies like dollars, pounds, euros, and
yen. Currently, Transferwise and CurrencyFair are the biggest P2P companies for
international
money transfer
.

READ  Steel Casting Vs Aluminium Casting: An Appropriate Alloy For Casting Products

2. Paypal

PayPal is famous and known for a
long time as a platform for international money transfer. Using PayPal, you can
transfer money in 20 different currencies to almost 190 countries. The
interface of PayPal is easy and straightforward to understand, making it a
popular choice. To transfer money, all you need is the recipient’s phone number
or email address.

7 Affordable Ways To Transfer Money Internationally
7 Affordable Ways To Transfer Money Internationally
PayPal allows you to preview the
conversion and exchange rate before you transact any funds and has a fixed fee
for the service – making it a transparent and precise method to transfer your
money abroad. It works best for amounts under $500 to $1000 USD and is not
suitable for sending large sums (due to hefty fixed fees).

3. Money Transfer Operators

Money transfer operators are
financial companies (usually not banks) engaged in cross-border funds transfer
either through their internal systems or through other cross-border banks.
These companies specialize in moving money quickly for their clients from
various locations and even between countries. They have ground locations based
on multiple locations worldwide, which allows you to transfer money swiftly.

Money transfer operators are
ideal if you want to send money as soon as possible in emergencies. The
services are both online and offline, ideal in conditions if recipients or
senders do not have an internet connection. These operators allow digital and physical
transfers, allowing both parties to deposit or withdraw hard cash. Western
Union and MoneyGram are the two most popular money transfer operators.

4. Bank Wire Transfers

Bank wire transfers are an
electronic transfer of funds from one bank to another bank where the sender and
recipient are required to have a bank account. These transfers can be done
online or in person. To transfer a wire, you need to do formalities of form
filling and need specific details of the recipient like full name and branch,
transit, or account numbers.

7 Affordable Ways To Transfer Money Internationally
7 Affordable Ways To Transfer Money Internationally

Wire transfers are ideal for
sending large sums and need the funds to go directly into the recipient’s bank
account. They are beneficial to send funds for businesses or for conducting
businesses. Since it is bank to bank wire transfer, they are generally one of
the most secure ways of transferring money. Although the conversions, exchange,
and bank service rates are very high. Usually, the rates of the service are $20
to $40 USD with high exchange rates.

READ  How Blacklisted Loans With No Credit Checks Can Help You?

5. Money Orders

In today’s technology, driven
world money orders might be an old age method of money transfer. Nevertheless,
they are almost guaranteed and non-fraudulent ways. They are best suited for
business transactions, where digital services are limited.

A money order is a set amount of
money paid in advance at a bank or post office in the name of the recipient
person or business. Money orders are a much-trusted method to transfer money
than a cheque.  The service charges vary
from $10 to $ 50 USD.

6. Bank To Bank Transfer

Some of the major banks offer
free money transfer on international locations – with conditions such as
recipients having an account with the same branch in two different countries or
sender, and recipients having the same bank. This method works best when both
accounts are in the same currency, as it saves conversion and exchange rates.

7. Non-Peer-To-Peer Transfers

OFX, TorFX, and WorldFirst are
non-bank institutions specifically related to international payments and
foreign exchange. They are the cheapest and best ways to send money
internationally for any amounts exceeding $10,000 USD. These services are
completely safe and regulated.  They
provide fair exchange rates and cheap service rates for any larger amounts and
generally not suited for small funds transfers.

7 Affordable Ways To Transfer Money Internationally
7 Affordable Ways To Transfer Money Internationally
Bottom-Line: The affordable ways
to send money abroad depend on how you want the money transferred, how much the time you have to send money, and how much you are trying to save. Considering
all the factors, P2P services like Transferwise and CurrencyFair are the best
choice for affordable international payments. 
Do your research regarding what service is best and affordable for you.
Learn about risks and make sure you are not giving away more than you should!

LEAVE A REPLY

Please enter your comment!
Please enter your name here