Sending money overseas? Find answers with Transfer Supermarket to frequently asked questions regarding international money transfers and related technical jargon.
An international currency transfer is typically a financial “bank account to bank account” transaction where funds are sent overseas, to another country, currency and bank account.
Interbank foreign exchange rates are wholesale rates that banks use, also known as live foreign exchange rates.
Typically, for private transactions, brokers offer the best exchange rates for overseas money transfers into other currencies. Brokers offer much lower margin rates than banks, meaning that you’ll receive a better overall deal.
An FX margin rate is the amount the bank, broker or foreign exchange bureau adds onto the interbank foreign exchange rate when they quote the rate for a money transfer. The smaller the margin rate, the less it will cost you.
Getting the best deal on your money transfer is as simple as finding out what your local bank will offer, and then comparing the deal to what you would receive by using a broker. Try and negotiate a fixed FX margin rate from the interbank rate with your broker, as generally, high street banks are unlikely to offer this type of agreement unless you are a corporate customer making regular money transfers abroad.
Most brokers now offer instant bank to bank money transfers for clients who are trading in major currencies, otherwise the time scale is typically 1 to 3 days. Banks will normally complete money transfer transactions in around 5 to 7 working days.
If you have received a previous quotation for a money transfer and now you’ve decided to make a trade, only to see that the deal no longer looks as good, it’s the fluctuation in the exchange rate that has made the difference.
Of course. All brokers that are listed on transfersupermarket.com are authorised by the UK FCA (Financial Conduct Authority), which means that your money is safe as all client funds are safeguarded and held in segregated accounts.