Large international money transfers are a minefield of jargon and risk. But by sticking to five simple principles you can reduce risk and send less to get more for you or your business.
Rule 1: Don’t use your bank.
Banks do lots of things, and as such their fee reflect this. By using a currency broker or money transfer provider instead of your bank you can save up to 3% on the value of the payment by getting a better exchange rate.
At Berry FX, we do one, thing and we do it well, that is foreign exchange.
Rule 2: Learn how to compare transfer fees.
If you are requesting quotes from your bank and multiple brokers you may find it difficult to understand exactly what the charges and fees are. Some banks and transfer providers add additional charges for international payments. But with the revolution of “fintech” online international payments platforms mean that these should no longer apply.
The only figure you need to know when comparing fees and exchange rates is the “percentage from the mid-market” your exchange rates will be. Berry FX offer fixed exchange rates of no more than 0.5% from the mid-market and these reduce with monthly volume. You can see our fixed exchange rates here.
Rule 3: Make sure the payment is secure
Currency brokers and money transfer are required to be regulated by the FCA and HMRC. Always check to see if that is the case. You can check the FCA register here.
Client funds should also be segregated from the brokers accounts so check they are using segregated accounts.
Rule 4: Get your account open well ahead of a potential payment
If you leave it till the last minute you risk missing out on a beneficial exchange rate. If you have an upcoming payment and are worried that the exchange rate will move against you, it is possible to lock the current rate with a currency forward contract for up to one year in advance.
Rule 5: Be informed and talk to an expert
As specialist currency brokers we are on hand to provide advice on the most efficient ways to convert money and assist with market timing. The process can be quite daunting at first, but we provide dedicated account managers to help with any account issues and answer any questions in plain jargon free language.