How do international money transfers work?

An international money transfer is the process of sending funds overseas and it is typically the most secure and easiest way to do so. The listed providers specialise in offering international money transfer services at the best exchange rates. To begin sending money overseas, you generally first register with the service and open an account. Registration is usually free and quick. From your standard bank account or credit card, depending on the service, you deposit the money you want to send into this account. Then, you simply provide details of the recipient's IBAN/SWIFT code, BSB and account number and the service will send the money on your behalf. These services often charge lower fees and offer better exchange rates than banks.

Overseas Money Transfers

Transferring money internationally from bank to bank is usually costly and can take too long. Banks add a bigger margin to their foreign exchange rates and also charge fees for each transfer. On the other side, the recipient's bank may also charge a fee to process the funds. With a specialist foreign exchange company such as TorFX, Currencies Direct or World First, you can secure better deals and efficient service for your international money transfers. Foreign exchange companies usually offer a range of money transfer services for things like purchasing or selling property overseas, emigrating or acquiring travel money. Each company varies in the type of deal they offer customers and this depends on the amount transferred, the currency involved and the frequency of transfers.

Bank Rates vs Currency Exchange Companies

Typically, you also receive a more transparent service with foreign exchange providers as opposed to banks. Bank rates and margins are subject to "change without notice" which means the rate you are quoted may not be the rate you receive in the end. With services like TorFX, Currencies Direct and World First, you are quoted a rate and once you book and confirm your transfer you are locked in to that rate so there are no surprises.

Some foreign exchange companies offer a more personalised service compared to banks as you are allocated your own account manager. You get faster and more tailored service as they ensure your transfers are seamless.