When you or your business make regular international payments you should be using a currency broker for the money transfers.
It is cheaper, quicker and easier.
If you are still using your bank or have an established relationship with an international money transfer provider here are three ways you can reduce your international payment costs.
Firstly, find out how much you are being charged.
Chances are you don’t actually know what you are being charged or even how to compare the costs of international payments. If you review any comparison site in the UK that compares money transfers there is no real breakdown of the fees that you will be charged.
If you don’t know how much you are being charged get a free no obligation international payments review.
Take a quick look at the major comparison portals for comparing currency quotes. None of them actually show the charges, they just either highlight the features or the amount receivable. Unfortunately they rarely show the actual rate this is based off. Even after you have selected the currency broker at the top of the list you are still none the wiser as to what your actual costs are.
The only way to compare the costs between various money transfer providers is to ask what the brokers mark-up is or the percentage from the mid-market client exchange rates are.
This is the difference between where the broker buys currency in the wholesale market and sells it to you.
Even if you then go on to explore other international payment provider’s website you’ll notice they don’t publish what their mark-up is. So, you have no real way to know what your costs are.
However, at Berry FX our exchange rates are always fixed and transparent. When you request a quote you know it will always be the same.
Our rates are a fixed 0.5% from the mid-market and that mark-up reduces with monthly volumes. You can see a full break down of our charges here.
Then, switch from your bank to a currency broker that offers fixed rates
To put our fees in perspective, banks can charge up to 4% per transaction and there may be additional administration fees on top.
It’s worth noting that the majority of other money transfer firms will charge up to 1% from the mid-market versus our 0.5% unless you negotiate and get a fixed exchange rate deal.
Also if you want to hedge any exposure, as a currency broker can offer forward currency contracts to lock in an exchange rate for up to a year.
You can view a video demo of our online international payments platform here
But do keep multi-currency accounts at your bank
If you are receiving foreign currency and you only have a GBP account you have no control or visibility over when or at what rate the funds are converted to GBP.
It’s much more sensible to keep multi currency accounts with your bank and transfer funds to and from a currency broker when you need to convert them as opposed to the banks foreign exchange service.
We can send funds on to a single or multiple beneficiaries but if you would rather send funds from your own account converted funds can be back in your account same day and your will net significantly more.