What Are the Safest Ways to Send Money Abroad?
25 September 2019

There are many reasons why you might want to send money abroad, whether it’s for a one-off transaction or on a regular basis. If you’re sending money to another country, it’s not quite as simple as transferring funds to another UK bank account, and the security of the transaction must be considered.

There are a number of options for sending money abroad; here's a closer look at some of the most common.

Bank Transfers

Bank transfers are one of the most common choices to send money overseas, and there’s a degree of comfort by using a familiar name that you know and trust. If you’re planning on making regular payments, it’s also a convenient way to organise future payments. Banks and building societies are safe and secure, and are regulated by the FCA.

However, although banks and building societies may be the first place people consider for international transfers, they’re not necessarily the best option. The exchange rates typically aren’t very competitive and fees for making the transfer can be high. In addition, the money normally takes 4-6 days to arrive unless you pay more for an expedited transfer. Even for this express service, it will still take one to two days.

If your bank has branches in the country you are sending money to, the process may be slightly easier. This is because the bank receiving the money can levy a charge for the service, pushing the fees up higher. Unfortunately, to benefit from overseas branches of your own bank, you’ll need to open an account overseas, too – holding a UK account isn’t sufficient to get the full range of benefits.

Transfers from banks and building societies are one of the safest ways to send money, but with a slow service and high charges, there are better options.

Foreign Currency Brokers

Foreign currency brokers specialise in transactions involving other currencies, so in many ways are perfectly set up. They can provide very competitive exchange rates, and for large transactions such as property sales, this can represent significant savings. Fees for foreign currency brokers are low, and in some cases you won’t get charged at all.

Similarly to a bank, clients set up an account with their chosen foreign currency broker. This makes future payments easy to organise and allows regular transfers if required. The service is much quicker than with a bank, with many transfers credited to the receiving account within a day.

Foreign currency traders can provide additional security via forward contracts. This allows current exchange rates to be locked in for future use, offering a stable exchange rate. For transactions where large fluctuations could be disastrous, this option is vital.

Using a foreign currency broker is one of the safest options for sending money. Their expertise isn’t diluted by offering other types of financial services and the best firms use the latest technology to provide both transparency and security throughout the whole process of sending money.

High-Street

With the growing popularity of sending money overseas, there has been a rise in the number of companies offering their services. Many of these are located on the high street, and are simple to use with few restrictions – one of the best-known examples of a payment transfer firm is Western Union.

When used correctly, the money should arrive at its destination safely but there have been many problems reported with using this type of service. This is because it’s not necessary to open an account to receive the funds, so if the money is sent to the wrong place, there’s no recourse. Western Union, like many other high street transfer firms, don’t offer escrow or protection, so the full responsibility lies with the person sending the money.

Due to the potential for errors to be made, and the lack of protection, in general, high-street transfer firms are not considered to be a safe means for sending funds overseas.

The Importance of the FCA

When you’re considering the safety of your money, it’s not just the physical process of transferring the funds overseas that you should consider. To be certain that the company is acting diligently and following the right processes, they should be registered and authorised by the Financial Conduct Authority (FCA).

This ensures that rigorous standards are adhered to when money is being processed, such as being ring-fenced and held in a segregated account. It’s easy to check whether a company is regulated by the FCA as they have an online register which anyone can check. You should be able to find the FCA number clearly displayed on the company’s page, but the register will confirm if this is a current and valid registration, as well as the services the company is permitted to provide.

To stay safe, you should never consider using a company not regulated by the FCA.

Find Out More

If you’re considering sending money overseas, Privalgo can help. As experts in personal currency transfer, we can assist with all aspects of the transaction and offer a secure service you can trust. Contact one of our representatives today to find out more.

What Are the Safest Ways to Send Money Abroad?
25 September 2019

There are many reasons why you might want to send money abroad, whether it’s for a one-off transaction or on a regular basis. If you’re sending money to another country, it’s not quite as simple as transferring funds to another UK bank account, and the security of the transaction must be considered.

There are a number of options for sending money abroad; here's a closer look at some of the most common.

Bank Transfers

Bank transfers are one of the most common choices to send money overseas, and there’s a degree of comfort by using a familiar name that you know and trust. If you’re planning on making regular payments, it’s also a convenient way to organise future payments. Banks and building societies are safe and secure, and are regulated by the FCA.

However, although banks and building societies may be the first place people consider for international transfers, they’re not necessarily the best option. The exchange rates typically aren’t very competitive and fees for making the transfer can be high. In addition, the money normally takes 4-6 days to arrive unless you pay more for an expedited transfer. Even for this express service, it will still take one to two days.

If your bank has branches in the country you are sending money to, the process may be slightly easier. This is because the bank receiving the money can levy a charge for the service, pushing the fees up higher. Unfortunately, to benefit from overseas branches of your own bank, you’ll need to open an account overseas, too – holding a UK account isn’t sufficient to get the full range of benefits.

Transfers from banks and building societies are one of the safest ways to send money, but with a slow service and high charges, there are better options.

Foreign Currency Brokers

Foreign currency brokers specialise in transactions involving other currencies, so in many ways are perfectly set up. They can provide very competitive exchange rates, and for large transactions such as property sales, this can represent significant savings. Fees for foreign currency brokers are low, and in some cases you won’t get charged at all.

Similarly to a bank, clients set up an account with their chosen foreign currency broker. This makes future payments easy to organise and allows regular transfers if required. The service is much quicker than with a bank, with many transfers credited to the receiving account within a day.

Foreign currency traders can provide additional security via forward contracts. This allows current exchange rates to be locked in for future use, offering a stable exchange rate. For transactions where large fluctuations could be disastrous, this option is vital.

Using a foreign currency broker is one of the safest options for sending money. Their expertise isn’t diluted by offering other types of financial services and the best firms use the latest technology to provide both transparency and security throughout the whole process of sending money.

High-Street

With the growing popularity of sending money overseas, there has been a rise in the number of companies offering their services. Many of these are located on the high street, and are simple to use with few restrictions – one of the best-known examples of a payment transfer firm is Western Union.

When used correctly, the money should arrive at its destination safely but there have been many problems reported with using this type of service. This is because it’s not necessary to open an account to receive the funds, so if the money is sent to the wrong place, there’s no recourse. Western Union, like many other high street transfer firms, don’t offer escrow or protection, so the full responsibility lies with the person sending the money.

Due to the potential for errors to be made, and the lack of protection, in general, high-street transfer firms are not considered to be a safe means for sending funds overseas.

The Importance of the FCA

When you’re considering the safety of your money, it’s not just the physical process of transferring the funds overseas that you should consider. To be certain that the company is acting diligently and following the right processes, they should be registered and authorised by the Financial Conduct Authority (FCA).

This ensures that rigorous standards are adhered to when money is being processed, such as being ring-fenced and held in a segregated account. It’s easy to check whether a company is regulated by the FCA as they have an online register which anyone can check. You should be able to find the FCA number clearly displayed on the company’s page, but the register will confirm if this is a current and valid registration, as well as the services the company is permitted to provide.

To stay safe, you should never consider using a company not regulated by the FCA.

Find Out More

If you’re considering sending money overseas, Privalgo can help. As experts in personal currency transfer, we can assist with all aspects of the transaction and offer a secure service you can trust. Contact one of our representatives today to find out more.

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