If you need to make international payments, you may have been left wondering whether to opt for a broker or a bank. With more and more people sending money around the world all the time, the international payments market is seeing increasing growth. However, if we make the wrong choice we could be paying far more than we need to for global payments.
Why send money abroad?
People send money around the world for many reasons, including business and family purposes. You may need to get money overseas because you are emigrating or have bought a second home. Whatever the case, the right service can help you send these funds with ease.
Should I use a bank?
There are several reasons why someone might use a bank for international transactions. They may have been with the bank for many years and may trust them to offer the best value. However, sending via a bank can be expensive. Banks don’t tend to offer the most competitive exchange rates, and you could find yourself paying 3% more than you would if you used a broker. The higher the rates, the less money you will have once the transfer has been made. As well as charging you a high exchange rate, they may also ask you to pay a sizeable sum just to carry out the transfer. Even if they offer ‘commission-free’ services, they may simply charge you a large transfer fee instead.
The benefits of brokers
When you send money via a broker, you may be able to freeze the rate for a year or longer. They may also let you organise a regular payment to take the strain out of repeat transactions. In many cases, it won’t take you as long to transfer the money when you opt for a broker. If you do decide to use a broker, use one that is authorised and recognised by the Financial Conduct Authority. This means your money will be safe if anything happens to the company. It’s generally easy to find out whether a broker is regulated by the FCA or not. We operate under our providers E Money license which adheres us to strict regulations and guidelines.
Other reasons for making global payments
Let’s take a quick look at other reasons why so many people need to send money overseas these days. Some parents make international payments to fund overseas tuition fees, and it’s also common for people to send money to friends and family who live abroad. International payments solutions can also be used to make overseas investments, help family members who are travelling the world, to cover the cost of overseas weddings and to pay for holidays. Global payments can also be used for work that’s being completed by overseas clients and to pay for a whole host of products and services provided by foreign companies.
Let us help with international FX payments
Talk to us today if you’ve been looking for an FX payments platform that won’t let you down. We have vast experience when it comes to completing international FX payments. You can get in touch with us at any point if you do have any queries about our personal corporate and business FX payment services.
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