FAQs
MONEY TRANSFERS – FREQUENTLY ASKED QUESTIONS
Sending money overseas? Find answers with Transfer Supermarket to frequently asked questions regarding international money transfers and related technical jargon.
Whether you are a first-time sender or a seasoned pro, Transfer Supermarket can help you navigate the complexities of transferring money across borders. From understanding exchange rates and fees to selecting the best transfer method for your needs, we have all the information you need to make informed decisions when sending money overseas.
Don’t let confusing terminology or hidden costs trip you up, let Transfer Supermarket be your guide to hassle-free international money transfers.
About TrustScores
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About transaction fees
The transaction (or service) fee that banks and providers charge is made up of a fixed fee which varies, depending on where you are sending the money and which currencies apply to the transaction.
About Money transfer providers
Unlike banks, money transfer companies offer the very best exchange rates and by keeping their margin rates low, they beat the banks by several percentage points.
About exchange rates
Money transfer exchange rates are calculated and updated weekdays, hourly 08:00 – 16:00. The exchange rates provided are indicative only and several factors may contribute to the final rate, including market conditions, transfer amount and the mode of transfer (online or via phone/email).
What is an international currency transfer?
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.
This type of transfer can be done through a variety of methods, such as wire transfers, online money transfer services, or through traditional banking institutions. The process usually involves providing the recipient’s bank account details, the amount to be transferred, and any additional information required by the sending and receiving banks.
International currency transfers can be subject to fees and exchange rate fluctuations, so it is important to compare different options and choose the most cost-effective and efficient method for your specific needs. Additionally, it is crucial to ensure that all information provided is accurate to avoid any delays or complications in the transfer process.
What are interbank foreign exchange rates?
Interbank foreign exchange rates are wholesale rates that banks use, also known as live foreign exchange rates.
These rates are constantly changing throughout the trading day as currencies are bought and sold in the global foreign exchange market. Banks use interbank rates to execute trades on behalf of their clients, such as businesses engaging in international trade or individuals exchanging currencies for travel purposes.
Interbank rates are typically more competitive than the rates offered to retail customers, as banks can access better rates due to the large volumes of currency they trade. It is important for individuals and businesses to be aware of interbank rates when exchanging currencies, as they can have a significant impact on the cost of the transaction.
Who offers the best currency 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.
Additionally, brokers often have access to a wider range of currency options, allowing you to transfer money into more exotic or less commonly traded currencies. This can be particularly advantageous for businesses or individuals who have specific currency needs for their transactions.
Overall, using a broker for overseas money transfers can save you money and provide you with more options than traditional banks. It’s important to research and compare different brokers to find the one that best fits your needs and offers the most competitive rates.
What is an FX margin rate?
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.
A higher margin rate means you will end up paying more for the currency exchange. It is important to shop around and compare margin rates from different providers to ensure you are getting the best deal possible.
Some providers may also offer special deals or promotions that can help you save even more money on your currency exchange. It is always a good idea to do your research and be aware of the current exchange rates before making any transactions. By being informed and proactive, you can make sure you are getting the best possible rate for your money transfer.
How can I achieve the best currency transfer deal?
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.
After the money has been sent, how long does it usually take to arrive?
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.
However, it is important to note that the speed of the transfer can also depend on factors such as the recipient’s bank and any potential security checks that may need to be carried out.
It is always recommended to check with your broker or bank for specific details on transfer times and any associated fees. With the advancement of technology, many financial institutions are working towards reducing transfer times and providing more efficient and convenient services for their clients.
My quotation for a money transfer has now reduced in value, why?
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.
Exchange rates can change rapidly due to a variety of factors, such as economic indicators, political events, and market speculation. This is why it is important to stay informed and be prepared for potential fluctuations when making international transactions.
By keeping an eye on the exchange rate and understanding how it can impact your trade, you can make more informed decisions and potentially save yourself from unexpected losses. Remember, timing is key when it comes to currency exchange, so always be proactive and monitor the market closely to make the most of your money transfers.
Can I have full confidence in my broker?
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.
This provides you with peace of mind knowing that your investments are protected and regulated by a reputable governing body. Additionally, the FCA ensures that all brokers adhere to strict compliance guidelines and ethical standards, giving you confidence in the credibility and reliability of the brokers listed on transfersupermarket.com.
Still have questions?
Doing some research and evaluating options will ultimately save you time and money: Compare money transfer providers