There are various options to transfer money overseas, and it is confusing as to whether they should use a traditional bank or transfer service providers. The wide variety complicates the matter. One needs to consider all of the factors which can affect your money such as reliability, transfer fees and time, and the exchange rates.
When it comes to sending money internationally, the first option that crops up is a bank. But the then there is the option of the various service providers to transfer money overseas. With such an overcrowded financial market and a multitude of companies providing the transfer service choosing the most trustworthy company with your money is an uphill battle too. But they are becoming increasingly famous in current times.
The truth is–banks may not be the best choice. The very argument that stands against the banks is that they are expensive than the services provided by these transfer service providers. Given below is a detailed account of the same.
Banks are usually more costly
Banks give comparatively lower exchange rates in comparison to transfer service providers. Additionally, banks have higher wire transfer fees about $20-$40 per transaction. Some banks may offer to transfer money overseas with no fees, but there are hidden costs and service charges involved that may be difficult to see.
Money transfer service providers offer you the best price for each Pound/Euro/Dollar and charge the lowest fees and are transparent about the overall figure you will receive in your destination address after deducting all fees and charges. They also give you a plethora of options to choose from to suit according to your needs –For eg. Bank Account Transfer, Cash Pickups etc.
For instance, take the example of Western Union. For domestic transfers, Western Union charges around $6 to send up to $50 for cash pickup with the transfer fee of about $100 for a transfer of $1,000. For transfers to a bank account, lower fees are there. For international transfers, most fees start at $5 and can be as much as $45. However, there are some fee-free transfer options as well.
The banks in turn, charge a higher service fee and also give a lower exchange rate. This is one of the reasons why they are becoming increasingly unpopular for transferring money overseas. Also, they are slower than these providers and so people who are generally in a hurry (which almost everybody is these days), go for an alternative option and revert from banks. So if you have to make an international transfer, you can almost indisputably choose money transfer services like Xendpay, Instarem Arsito, Tranfergo, etc. for an easier and cheaper way to transfer money overseas. You will also get a plethora of value added services from these firms which you would otherwise not get if you are dealing with the same old traditional banks. Switch to these service providers which transfer money overseas for better safety and quicker transactions to an offshore account.