A good website and a recognizable brand name does not a great money transfer company make. With so many options to choose from, there is no reason for consumers not to investigate many different firms when trying to figure out who to transfer their money with. Not everybody knows that within the past decade, this sector has been completely revolutionized. Twenty years ago, people had to rely on traditional banks and a small handful of very expensive services to transfer their money overseas. Today, web and mobile infrastructure is turning this industry topsy turvy, and they are doing it at lower cost to the consumer and with better service standards overall. Nonetheless, even if you’ve found what feels like a great currency transfer option, it’s good to dig in for a little healthy haggling because you may secure a better rate. Here’s how it all works:
The major currency transfer companies of yore were MoneyGram and Western Union. While these two behemoths still exist on an enormous scale, they’re hardly the best option for anyone looking for a currency transfer deal. What these companies do have is ubiquity, with hundreds of thousands of stands and agent locations all over the world. As such, they’re meant to be some customers’ only option, not necessarily the best, the fastest, or the most affordable. But new technologies are giving people all over the world other options. And as mobile devices become standard for people at nearly every income level, it’s possible that affordable currency transfer can be had by all.
To compare money transfer options, click through that link to see some of the options you may not be familiar with. These are options well outside the business model offered by the old guard, or that offered by traditional banking services. These companies are in the business of providing the cheapest and fastest service, while still maintaining quality. It’s the only way to compete in this crowded field of young companies.
If you are digging through your available options for the first time, look at independent reviews, talk to agent representatives over the phone for live rates and fees, and look for companies that cater to the technology methods that are most convenient for you. If you’re looking for a company to send small amounts of currency, look for a company that provides very low fees for amounts under $1000 or less. If you’re sending larger amounts, look for a company that has low fees or waives them entirely. Once you’ve found a company like this, focus on finding the best rates.
International currency exchange rates change all the time, and banks and companies like these provide transfer at rates that are slightly worse than the interbank rate. The difference between this rate and the rate provided by the companies is the profit they make. It’s pennies on the dollar in most cases, and won’t represent a huge loss of capital. However, if you’re transferring large amounts, it will be especially worth your while to haggle with your agent, as these companies will frequently offer lower rates than the ones they initially offer.
Photo Credit: Richard Allaway