This is an era where anything is possible at ease while consuming very less time. In the last few years, there have been extensive developments in the money transferring sector. Despite a significant number of banks in different countries, there has been a blast of small providers in this sectors. The last seven years have witnessed a huge explosion in the number of small providers joining the industry. This increase in the number of foreign exchange companies is not something customers should fear, in fact, it means consumers can take advantage of better exchange rates, more providers, and lower fees.
Millions of dollars are being wasted while remitting money from Australia in the form of high fees, bad exchange rates, and hidden fees. Consumers are charged up to 4 per cent or more for their transfers, which amounts up to losing about $400 on a $10,000 transfer if you decide to transfer the money to the UK. An analysis of World Bank by Finder found that Australians are paying 22 per cent more than the Britons, and 32 percent more than the Americans in fees on an average transfer of $200.
While there are many banks which impose huge fees and unbearable exchange rates, there are also many nonbanks or money exchange organizations which offer competitive deals with low or no fees like the InstaRem, CurrencyFair, and HiFX. These foreign exchange brokers are found to be more reliable regarding the time consumed for the transfer and also the cost imposed on the transfer of money. A customer transferring money from Australia to the United States could save around 6 per cent by avoiding the banks which impose poor exchange rates and fees and choosing a specialist such as InstaRem.
Paying high costs or unnecessary fees for the services that can be accessed elsewhere that too at a very lower cost, makes no sense at all. It would be wise for the customers to steer clear of the banks, whose margins are above the inter-bank rates. And also the customers now have the privilege of choosing between banks or various money exchange organizations. Things to be kept in mind if you are looking for remittance services in Australia are ludicrous exchange rate, delays, commission and hidden fees as these may vary for different companies.
People concerned about the specialist’s security credentials might go for the big, known banks which have been around for a long time. But a financial spokeswoman said she had seen very few problems in international money transfers.
When I think of gold, I am reminded of the cheesy 1970’s and early 80’s — the day of big hair bands, platform shoes, disco dancing, and cheap salesmen with gold teeth, gold necklaces, gold bracelets, chains, ropes, and gold-inlaid plaid jackets. “Have I got a deal for you!” the salesman would say as he flashed his gold tooth and winked, both fingers pointed at you like a couple of six-shooters.
The charges to be aware of while transferring money overseas
The fees are usually charged on per transfer or transaction will depend on the arrangements with a foreign bank. There are three main cost add ups to the transferring of money overseas.
- The exchange rate applied to the transaction.
- The fee charged at the time of remitting the amount.
- The amount charged at the receiving end (receiving fees while collecting the amount) by the service provider.