Sending cash has gotten a lot easier over the years with so many choices available. If you are someone who frequently sends money online domestically or internationally, there are some important things that you must keep in mind if you want to save money on your transfers. Money transfer companies make money by charging a fee on the interbank exchange rate. Each company has its own exchange rate and that is the reason why both the rate and fee must be taken into account.
Here is how you can find the cheapest money transfer way for you.
1. Know the Interbank Rate Banks convert interbank rate with each other; so you will never get it. The companies that offer money conversion charge a premium to convert money for you. There’s a chance that you will be taken advantage of if you don’t know what the interbank rate is.
2. Compare Companies to Find the Offer for you There are some companies that offer good exchange rates almost close to the interbank rate. At the same time, they charge a fee as a percentage of the amount being transferred. You might like the rate but in return, you might have to pay a higher fee. There are other companies that don’t charge a fee at all but their exchange rates are less favorable.
3. Use Limit Orders and Forward Contracts You might not always want to transfer money right away. Sometimes, you can afford to be patient. With some companies, you can make a limit order, forward contract, or both. Based on your requirement, you can choose a better option for you
You can use the comparison tool at the official website of RateShop.ca to find the cheapest money transfer option for you. When you want to transfer money, you have three options: the lowest fee, the best exchange rate or compromise between the two.