What is the best way to exchange large amounts of currency?
Sending money anywhere is usually a painless process. Whether you owe your friend a coffee or have rent to pay - most people know how to do this. But what if you need to exchange large amounts of currency? Perhaps you are purchasing a holiday property or planning to do lots of international travelling. It can be daunting to know how to get the best deal so here are some top tips to walk you through managing large amounts of money overseas.
What are the options for exchanging large amounts of currency?
First off, you have two options when it comes to sending and spending money abroad. You can either use a bank or use a currency broker. With either option, you need to consider factors such as foreign exchange rates, the cost of buying property abroad and how much everything is going to cost overall.
As you might expect, using a bank isn’t your cheapest option. The annual cost for banks to deal abroad is often billions a year, and this is passed onto the customer. Using a specialist broker when you are exchanging large amounts of currency can save you hundreds in fees, ensure you get the best exchange rates and give you great customer service. At Moving Currency, we can provide fast, reliable and cost-effective services to both corporate and private clients. Whatever you want to do with your funds, we’ve got all major areas covered.
What are the costs?
Once you’ve made your decision on how to send your money, there are two sets of costs to be aware of - transfer fees and exchange rates. Every time you make a transfer, most banks will charge you a fee for doing so. This can be as little as £10 but you could end up paying a lot more. These small fees can also add up fast if you send money regularly.
With exchange rates, banks and brokers should give you rates in real-time. UK banks often add on some extra mark up costs which could be as high as 5% with each exchange. Customers often accept this because often these rates aren’t shown to you completely until you’re at the end of the transaction. So, you might reluctantly agree even though you could do better with a broker.
How to get the best rate
Our advice is to research the exchange rates on the day you want to send money, even if you’re only going to a bureau de change. Foreign currency rates move up and down all the time and it can be difficult to know the right time to exchange your money.
With an exchange broker, you don’t need to worry as much as it’s their job to watch these rates and make sure you get a good deal. We recommend this especially for buying a property abroad or paying bills. For example, if the rates change by 1% and you have a pending transfer of £200,000, that’s a difference of £2000!
This could be the difference between a pool in your dream home or simply covering the water bill for a few months. With a little research, exchanging large amounts of currency abroad can be as easy as sending a friend £3 for a coffee.
Are you considering buying a property abroad or do you need to send significant sums of money overseas to pay bills?
Get in touch and our team will be happy to answer any questions you have or open an account online in just 5 minutes today. Contact us on UK 0207 435 7052 or USA 516 548 6485 or email info@movingcurrency.com