Compare the best ways
to transfer money overseas

How to Send Money Online

When it comes to sending money online, there are many factors to consider. For most people, the most important aspects will be the cost of completing the transfer, how secure…

When it comes to sending money online, there are many factors to consider. For most people, the most important aspects will be the cost of completing the transfer, how secure the funds are and how convenient the process is. Here we examine some of the best ways to send your money abroad online to see which one could benefit you most:

1. Banks
Using your online banking website or application to transfer money online can be a reliable and easy way to send your money overseas. However, fees vary greatly between banks and sometimes transactions can lack transparency due to further fees processed later on.

In general, completing an international currency transfer through your bank may cause you to be charged more than if you had considered other websites or platforms. Banks can also take quite a while for users to add new recipients to be paid to their accounts or for the money transfer to be received abroad. In the past, banks may have been the best way to send money overseas online, but this is certainly no longer the case as you will see below.

2. Western Union
Western Union is another more traditional way to send your money online. Although it is a more old-fashioned option, Western Union is available almost everywhere in the world and allows the recipient to collect money in cash wherever their nearest branch is. Western Union offers both domestic and international account-to-cash transfers. Funds transferred can be available within minutes or you can choose to opt for next-day collection. Fees can vary but in general they can be quite substantial. For example, sending a $50 transfer comes at a cost of $5 in the US. Overall, Western Union is not the most complete service as the recipient must locate their nearest Western Union branch (which could be quite a distance away depending on your location) and the fees for the sender can be significant.

3. PayPal
PayPal has for a long time been one of the best options when it comes to sending money online. PayPal offers an online platform, Android and iOS mobile applications allowing you to send money in just a few clicks or taps. Many people use PayPal globally for both personal and business transactions. Personal transactions are free if you use a PayPal account, debit card or bank account. While PayPal supports international money transfers, it can charge substantial fees on these as well as varying currency conversion rates.

When it comes to business transactions, fees can be quite hefty. And don’t forget, once the money reaches your PayPal account you may need to wait up to five working days to cash out the payment into your bank account. Overall, PayPal is convenient mainly for personal transactions between two people both holding a PayPal account. However, it is not the most advanced way to send your money online, especially when it comes to overseas transactions as fees can be very confusing.

4. Google Wallet
Google Wallet offers a rapid way for people to send money through their Gmail accounts. It is currently only available for those living in the US, but the service is set to expand internationally in the near future. The Google Wallet Android and iOS applications let you send money for free from a Google account, a debit or credit card, or a bank account (Note: Fees apply when using a credit card). It can also be used for contactless payments in-store and when shopping online. The biggest disadvantages to Google Wallet are that it is not available internationally and all parties involved must have a Google email address in order to avail of the service.

5. Venmo
Venmo is the latest craze to come out of the US and is actually owned by PayPal. It makes sending instant payments from your phone easier than ever, but unfortunately is not available at this time outside of the US. The Venmo Android and iOS applications have been very popular as all you need is the phone number or email address of the person you wish to send money to. Sending money from the Venmo wallet is free when using a debit card or bank account, while a 3% fee applies to credit cards or smaller debit card companies. Once you receive a payment through Venmo, you can cash out this money to your bank
account within one to two business days. This offers an advantage over the above options as it is far more rapid and easy to use, however it is unfortunately not available for international transfers and there is a maximum weekly sending limit of $2,999.99.

6. WireCompare
WireCompare.com is quite unique and stands apart from the more traditional money transfer
websites and applications above. Instead of offering one single platform through which to send your money online, WireCompare analyses a number of different money transfer applications and searches for the best one for you to use for your desired money transfer transaction.

WireCompare differs from options such as Google Wallet and Venmo as it also operates international transfer services, taking into account all relevant fees and currency conversions when considering your money transfer requirements. It allows you to easily send money anywhere in the world within a matter of minutes, while guaranteeing you the best value
possible on your money transfer.

In order to send money overseas via the Internet, you must be certain that the platform you use transfers money securely and rapidly from your account to the recipient. When you use WireCompare, you are accessing only the most trusted and reliable platforms through which to send your money. This ensures you have total peace of mind that your wire transfer will arrive safely with the recipient in a timely manner. See how much time and money you can save by using WireCompare for your next
international money transfer.

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[Infographic] Top Money Transfer Destination by Country

We designed a map of top money transfer destinations for every country. Here are some interesting facts we found: United States is the number one source of remittances in the world, approximately…

We designed a map of top money transfer destinations for every country. Here are some interesting facts we found:

  • United States is the number one source of remittances in the world, approximately 24% of all global outflow
  • India is the top receiver of remittances in the world, 12% of global inflow
  • UK, Germany, the Netherlands, Switzerland, Norway and Russia are the only countries in Europe that send significantly more money than receive
  • Ireland, Italy, Greece and Turkey send approximately the same amount the receive
  • For New Zealand, Australia, Malaysia, Japan, Mongolia, Canada the top destination is China
  • Most of South American countries send remittances to Spain, except Brazil that has Portugal as their most common destination

Please attribute credit by sharing with an active link to wirecompare.com

 

Notes:

Composed by wirecompare.com, data source: worldbank.org, 2017
These estimates are based on the methodology developed by Ratha and Shaw, 2007, “South-South Migration and Remittances,” World Bank (www.worldbank.org/prospects/migrationandremittances). The remittance data is for 2016, disaggregated using host country and origin country incomes, and estimated migrant stocks from 2013.
These are analytical estimates based on logical assumptions and derived from a global estimation of bilateral remittance flows worldwide. They are not actual officially reported data. The caveats attached to these estimates are: (a) the data on migrants in various destination countries are incomplete; (b) the incomes of migrants abroad and the costs of living are both proxied by per capita incomes in PPP terms, which is only a rough proxy; and (c) there is no way to capture remittances flowing through informal, unrecorded channels.
These estimates are based on the Bilateral Migration Matrix 2017.

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Money Transfer for Businesses

Do you own or run your own company? If so, you will be familiar with the struggles of deciding how best to pay bills or do business with other companies….

Do you own or run your own company? If so, you will be familiar with the struggles of deciding how best to pay bills or do business with other companies. This becomes a particularly difficult task when such payments involve transferring money overseas. In today’s global business environment, dealing with various currencies and exchange rates on a daily basis can become quite complex, which is why we’d like to give a few tips on money transfer for business users.

By learning more about how to select the best way to transfer money from your business abroad, you could make significant savings on fees associated with making payments to or from another country.

Read on to find out more about all the many benefits of using a money transfer platform for your business!

1. Cost Savings

From a company’s perspective, it is always important to reduce costs where possible. When dealing with different currencies and countries, it can become quite complicated and expensive to transfer money overseas.

With platforms such as WireCompare, this task becomes easy. WireCompare is a comparison tool that finds the best way for your business to transfer money abroad at the best price.

Technologies such as peer-to-peer exchange allow you to avoid any hidden fees. This means that your company stands to make significant savings in comparison to funds transferred through a bank in the more traditional manner.

money transfer for business

2. Security

All businesses worry about security issues, especially when it comes to new technologies. It is always important to ensure that your company’s money is secure and being managed by a trusted agency. Sometimes when transferring money abroad, there can be risks of fraudulent activity or security issues.

WireCompare offers only government-regulated reliable providers of money transferring services. This gives you and your company full peace of mind when it comes to your wire transfers overseas.

Be careful never to transfer your money with an unregulated provider. If in doubt, do not proceed with the transaction.

3. Flexibility

With a comparison tool analysing all transfer methods available, you have the ability to select whichever method best suits your company’s needs.

WireCompare searches for the best transfer method for your requirements based on the following factors:

  • Exchange rate
  • Transfer company
  • Transfer speed
  • Payment method
  • Cost

For each payment you wish to transfer overseas, you can view all options available based on the above factors. You will never be limited on choice and will always have the best options available to you. This differs from going through the traditional banking route which greatly limits your options and can lead you to spending much more money than necessary.

4. Technology 

Today there are many options available when it comes to transferring money. In recent years there have been many popular applications developed privately with the purpose of saving consumers time and money on their transfers. These apps offer a wide range of choice while maintaining high levels of security and transparency.

Although you may believe that going through a bank is the best way to transfer your company’s money overseas, it is important to consider the benefits of using different methods which can offer significant cost saving advantages.

Give it a try today and see how WireCompare and its trusted partners can make transferring different currencies much easier and cheaper for your business.

5. Ease of Use

Sometimes it can be difficult to set up an international money transfer through the bank and there can be a lack of transparency regarding applicable fees. For a business, this can pose many issues such as when exactly the transfer will reach the recipient or whether the exchange rate was competitive or overpriced.

The solution to such problems is to compare all options available before deciding how best to transfer your payment overseas. This is why WireCompare offers your business clear and transparent information regarding all key details of each money transfer application.

By using a comparison tool, you can save all the time that would have been spent investigating each possibility separately before making your decision. You will also ensure that you get the best value possible and the best quality of service.

Leading the way towards success

As every business leader knows, financial issues play an extremely important role in the profitability of a business. As a manager or a CEO, you must understand how small details can make a big impact on the success of a business.

To ensure that your company always obtains the best exchange rates and transfer fees available, it is essential to consider all options before deciding which platform or company to carry out the transfer.

Save time and money by using WireCompare which will quickly provide you with all the information you need in order to select the best method for your company to transfer money overseas.

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[infographic] Money transfer & payment methods

When it comes to payment apps and money transfer apps people expect not only secure and reliable but also convenient service. Today, there is an abundance of choice, but which app is the…

When it comes to payment apps and money transfer apps people expect not only secure and reliable but also convenient service. Today, there is an abundance of choice, but which app is the best for you? Find out in this infographic and see what apps people prefer:

Volumes, trends and expert predictions, data collected in July 2017.

NB: When sharing please credit wirecompare.com with an active link.

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Top 10 countries for expats

HSBC published the 9th edition of their Expat Explorer Report, ranking top 45 nations attractiveness for expats. This analysis relies on YouGov poll of nearly 27,000 expats in 190 nations. Regardless of where they…

HSBC published the 9th edition of their Expat Explorer Report, ranking top 45 nations attractiveness for expats. This analysis relies on YouGov poll of nearly 27,000 expats in 190 nations.

Regardless of where they made a decision to move, expats aren’t only looking for higher salaries or career success.

Among other top reasons for moving abroad are:

  • improve the quality of life
  • learn new skills
  • travel
  • find a new challenge
  • foreign assignment
  • travelling spouse

Expats were questioned about how simple it was to work, live and raise their children in the country they reside. Subsequently the results were combined to 3 main topics: 1. Economics, 2. Experience, and 3. Family. Each country received a grade for each topic. Switzerland is at the top in the Economics category. New-Zealand is number one in the Experience category and Sweden at the Family one.

This is the top 10 countries for expats in 2017:

10. Germany (rated 5th last year)

9. Bahrain (rated 4th last year)

8. Sweden (rated 3rd previous year)

7.  Austria (not ranked before)

6. Norway (not ranked before)

5. Switzerland (ranked 10th last year)

4. Chezh Republic (versus 18th position the year before)

3. Canada (6th last year)

2. New Zealand (same position)

1. Singapore (two years in a row)

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What is the mid-market rate

The mid-market rate, also known as the interbank rate, is the mid-point between the buy and sell prices of the two currencies – what the buyer is ready to pay and what the vendor is ready to sell for. A genuinely applied mid-market rate is universally recognized to be the…

The mid-market rate, also known as the interbank rate, is the mid-point between the buy and sell prices of the two currencies – what the buyer is ready to pay and what the vendor is ready to sell for. A genuinely applied mid-market rate is universally recognized to be the most fair and correct foreign currency rate reflecting real-time changes within the currency markets.

Whever there’s a currency exchange, legacy banks would apply a significant “spread” to the mid-market rate. If you’ve ever sent money abroad then it’s likely you’ve been unfairly overcharged.

Mid-market rate and the rate spread

To understand the mid-market rates and how they work, you need to understand what a “spread” is. This spread refers to the margin or difference between the buy and sell rates. For example, let’s say that you’re using UK pound to purchase a Canadian dollar. To get 1 Canadian dollar, you will have to spend 0.59 GBP. But, if you reverse the order around and sell these pounds, you may only receive CAD$0.96. The difference between those two points is called the “spread,” and in this case, that spread is CAD$0.04.

It’s important to know the spread between the buy and sell points, but it’s also important to understand how those two points play into the mid-market rate. So what is the mid-market rate for the example above? You can find out by averaging the buy and sell points ($1.16 + $1.10 / 2 = $1.13). So in this example, the mid-market rate would be $1.13.

Rate margin example:

Right now the GBP to AUD mid-market rate gives us 1 GBP = 1.79 AUD.
If you convert 1,000 GBP you should get 1,790 AUD but instead banks would quote you a much worse rate (approximately 1 GBP = 1.74 AUD), receiving only 1,740 Australian dollars. This seemingly small rate difference and you get 60 dollars less. This is typical for most currency exchange kiosks and banks.

A small spread is justifiable, as any business have expenses, but if you need to transfer money abroad then your goal is to minimize the spread. Fintech platforms have ability to execute trades at the mid-market rate by cutting out intermediation.

Before you make a money transfer make sure to check the mid-market rate (you can Google “1 GBP to AUD”) and check how what’s the rate BUY/SELL rate your bank uses today. Or try wirecompare.com, as we do this pre-work for you, allowing you to get transparent real-time quotes with live mid-market rates and fees charged from top-rated companies to show you upfront the amount you get.

Remember you should be aiming to get the closest possible rate to the mid-market price, which is also called the interbank rate or the real exchange rate that is essentially the point between the buy and sell prices of any two currencies when you’re dealing with currency exchange or money transfer.

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International money transfer: are banks really the way to go?

Before performing any kind of currency exchange, it’s important to understand every step in the process thoroughly, along with associated fees. This ensures that you retain the maximum possible value…

Before performing any kind of currency exchange, it’s important to understand every step in the process thoroughly, along with associated fees. This ensures that you retain the maximum possible value for your currency, rather than lose out on hidden costs. It’s commonly assumed by many that their bank is the most practical solution for transfer, without fully understanding the hidden fees and inflated exchange rates offered.

In general, the charges related to international money transfer fall into two categories: exchange rate, or transaction fees. Exchange rates are often obscured by large banks, as some opt not to provide the information at all. The rate given is frequently one loaded with a commission. On the other hand, transaction costs involve things like overseas receiving or transfer fees.

The exchange rate actually offered by a bank may wind up being dependent on things like the volatility of the currencies you are dealing with, the amount being transferred, and the time-frame of your exchange.

Depending on your need, which may range from substantial purchases overseas to small transactions like sending money to family members, it’s often wise to investigate other options such as peer-to-peer exchange. These methods very frequently offer exchange rates that are less bloated with commissions, and are more transparent about the fees associated with transferring money internationally. In the future, we’ll have a look at how peer-to-peer exchange works, and what benefits it offers over more traditional methods of currency exchange.

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When is the best time to exchange currencies

Any time that foreign exchange currencies are being traded, be it in a money transfer or as an investment, it is a good idea to make a rudimentary analysis of…

Any time that foreign exchange currencies are being traded, be it in a money transfer or as an investment, it is a good idea to make a rudimentary analysis of the economic status in the countries issuing each currency. This process can help choose the best time to make the transfer, regardless of whether the aim is to maximize return or simply make the most efficient transfer possible.

A good economic indicator is the consumer price index, or CPI. This is the most readily accessible measure of the purchase power of a particular currency, and describes the price of a specific bundle of goods and services. By reflecting inflation rates, this is a great way of determining whether the average purchasing power of a currency is rising or falling.

Employment data is another highly relevant statistic in analyzing a country’s economic working. A higher demand for a particular country’s exports is usually reflected by a higher rate of employment, and it can be speculated that a greater volume of export is accompanied by a favourable rate of exchange for the issuing country.

A third method to build a quick insight into the size of a country’s economy is its gross domestic product, or GDP. This represents the value of a country’s goods and services over the span of a year, and a higher value is usually another good indicator of a greater demand for those goods and services. Once again, this results in a greater interest in the country’s currency from international investors.

Making a quick review of these factors before using a currency exchange service has the potential to give you insight into the best time to make a currency exchange. Waiting may, in some cases, be the best option for conserving as much value as possible.

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The Most Affordable Places To Live in Europe

Have you ever wondered what your salary could buy in other European capitals? Sometimes when you are on holiday you might notice that a drink is significantly cheaper at your…

Have you ever wondered what your salary could buy in other European capitals? Sometimes when you are on holiday you might notice that a drink is significantly cheaper at your holiday destinations than at home – but how about rent, transport and food?

Discovering the most affordable cities

On the website www.numbeo.com local people can submit the average cost of food, transport and the most basic goods in their cities – including rent and mortgage payments. The results of the submission of the participants for each city are then averaged and then contrasted against other cities, using New York City as the base Index of 100 to calculate the affordability of living in these cities.

As of September 2017, numbeo is listing the following five places as the most affordable capitals to live within the European Union:

  • Athens, Greece
  • Budapest, Hungary
  • Bucharest, Romania
  • Sofia, Bulgaria
  • Lisbon, Portugal

These five cities have been also recently at the forefront of so called “digital-nomads” in Europe, people who are working remotely on the internet with their clients based all around the world and generally earning their livening in US-Dollars, Euros or British pounds.

While local wages in the five cities above might be in line with the relative lower expenditures, for digital nomads with clients in the United States or the UK, living there would likely be a very interesting opportunity.

Managing foreign currency when living in Hungary, Romania or Bulgaria

If you are interested to becoming an expat or digital nomad in one of those cities, an important point to remember is that apart from Athens and Lisbon, none of them is part of the Euro currency zone, but still use their own local currency.

Unfortunately, using a bank account denominated e.g. in Euro and withdrawing cash in Romanian Leu, Bulgarian Leva or Hungarian Forint is not only not practical, but also quite expensive.

Over the last years, however, companies have emerged who do not only make it possible but also affordable to withdraw cash and paying in foreign currency.

Companies like Revolut and N26 are offering a pre-payed credit card which can be topped up in any major currency like British Pounds or Euro by a wire transfer from your bank account or an instant payment from any other credit card.

You can then use the card to immediately pay in local currency and get better exchange rate directly from the interbank market.

If you want to send money back home, you should explore your options, e.g. transferring 1000 GBP from Hungary to UK you can save about 40 pounds.

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Basics of peer-to-peer foreign currency exchange

Peer-to-peer foreign exchange mechanisms are rapidly gaining popularity, and it’s easy to see why. The foreign exchange market even as of 2014 had surpassed a daily trading volume of $5.5…

Peer-to-peer foreign exchange mechanisms are rapidly gaining popularity, and it’s easy to see why. The foreign exchange market even as of 2014 had surpassed a daily trading volume of $5.5 billion.

In this arena, many peer-to-peer companies usually claim 75-90% savings on the typical fees associated with foreign exchange and the percentage taken from the total transaction by brokers and banks. In addition, peer-to-peer exchanges are almost always completed more quickly.

This is achieved by converting all international exchanges into simple domestic ones. Rather than moving currencies across borders, peer-to-peer firms allow clients to find other users matching their exchange needs and complete the transactions domestically within only a few days. Because this mechanism for foreign exchange is still gaining traction, on occasion it can difficult to find a suitable partner for exchanging less common currencies.

How does regulation work?

Building trust with clients is one of the most important aspects of developing traction for any peer-to-peer network. As a result, many such firms have taken steps toward being registered with regulatory bodies. Though this does not completely protect prospective clients, it can signal that the firm intends to deal in good faith.

One technique for ensuring honest dealing in foreign exchange is known as ringfencing. This means simply that all funds belonging to clients must be segregated by the firm’s own accounts at the end of each working day, protecting clients from loss in the event that the firm falls into financial hardship.

How do I choose a good peer-to-peer firm?

It’s important to always fully understand the risks associated with peer-to-peer exchange. Having said this, there are some basic guidelines that can be followed to choose the right service for your situation.

A good first step is to check the regulation status with relevant agencies, and whether or not client funds are segregated from the firm’s. These is always great indicators of the trustworthiness of a firm. Another good sign is the volume of transaction being handled. Make sure that the firm deals with your specific currency. This is especially important for smaller currencies.

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