International Money Transfer Fees

International Money Transfer FeesInternational money transfer fees can vary from one financial institution to another so it is wise to check around a few different providers before initiating your international transfer. Years ago it used to be the domain of banks and a few specialised money transfer companies. Now with the advent of technology there are a variety of online providers of international money transfers. This is good for the consumer because increased competition tends to mean reduced fees and hopefully, better service. Of course the latter isn’t always the case.

Banks are still probably the default place for transferring money internationally and they are a good place to start when looking at the costs or wire transfers. If you are extremely risk averse and don’t trust anyone else, definitely follow the bank option. Just be aware the wire transfer fees tend to be a bit higher. Even if you fall into the above category, don’t discount some of the newer online services. Whilst many of them don’t appear like a bank and don’t have a name that even resembles anything like a financial institution, many are still guaranteed just like a bank, are similarly licensed and have to follow the exact same laws. A quick check on their websites will show you and if in any doubt check the information with the relevant authorities.

Fees associated with international money transfers and domestic money transfers are often on a sliding scale. That means, regardless of the amount to be transferred, there is a minimum charge and after that, it may be a percentage of the amount to be transferred. If you are transferring a large amount then you should look for one that has a reducing percentage fee as the amount increases. Comparisons can sometimes require a quick calculation because they can structure it in different ways. Nothing too complicated and only takes a few minutes to say what can be a significant amount of money.

If you are using one of the newer style of online money transfer services, make sure there are no joining fees or similar one off administration charges. There are too many reputable free to join transfer services to even bother considering one that wants to gouge even more money from you.