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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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The 4 Best Ways to Save on International Moving and Immigration Costs

If you move from a very wealthy country to a less prosperous one, you can easily cut your expenses. You can live a better life while spending far less. However,…

If you move from a very wealthy country to a less prosperous one, you can easily cut your expenses. You can live a better life while spending far less. However, the costs of moving country and immigrating can be quite high – so it is important for you to be savvy about your move. We have put together the four most important ways on how you can save money when emigrating to another country.

Moving and transportation cost

One of the major and immediate expense when relocating to another country you face is paying an international moving company to move your belongings from your home to another country.  In principal the costs depend on the following factors: the amount of luggage you move, the distance between the places your belongings are moved in-between and the means of transport you are choosing. Air freight will arrive within a couple of days while moving your items by ship or long freight can take weeks.

The main way you can save here is by deciding on what is most important for you and where you can make compromises: do you need you items to arrive quickly (expensive) or can you allow some time for them to arrive (cheaper option). Also, there can be big differences between what companies are charging for the very same service.

Once you have started packing your belongings and identified the exact quantity of the items (e.g. 20 moving boxes sized 18″ x 18″ x 24″, 1 bed, 1 chest of drawers,…) the best way to compare costs is to google for moving companies and obtain a definitive quote for the move by mail by at least five companies. You will be surprised about the differences between the cheapest and most expensive option: out of personal experience the most expensive company would charge up to 5-times as much as the cheapest one!

Housing fees

If you are planning your arrival carefully, there are additional tricks how you can save money: most of us will not be able to find a good permanent and cheap rental property from a distance. House hunting takes time and effort. So in order to find the most suitable and cheap place to stay permanently, you might want to try to stay at a temporary place upon your initial arrival:

  • Airbnb: this widely known service allows you to rent a room or apartment from a day to many month and is used by many expats to bridge a few days or weeks for house-hunting
  • Renting a short let: there are many options of renting a fully furnished flat for a shorter period of time (generally between 1 and 3 months) in any major city. Just google it.

Once you have found a permanent place to stay, you will need to be aware of how the local  housing market works and what taxes and fees are involved to get settled (e.g. estate agent fees, taxes, council fees,.. which can vary widely from country to country). Make sure you understand all fees, charges and taxes you will be liable for in advance of signing a contract for the housing you will be using.

Visa fees

Moving to another country to work or study can mean that you need to apply for a visa, unless you’re moving within the EU, which allows you to move between countries visa-free. Obtaining a visa usually involves a significant amount of paper work and the payment of sometimes quite substantial fees.

Visa fees also normally fall due every time you need to renew your visa. Depending on your nationality, visas to stay in e.g. in the UK can cost over £1,000.

The solution here is to thoroughly study the visa condition for the country you’re considering to move to at the very beginning of you moving plans and try obtain information based on people’s personal experience rather than relying on embassy information only.

We recommend to check online message boards and forums where people share experience and visa agents they have been successfully using. There will be unfortunately not a lot of options to lower the costs for visas as they are fixed by the relevant governments.

Journey and flight comparison

Once you have budgeted your visa requirements, the transportation of your belongings and any temporary housing, it is time to look for the most efficient way to travel. To compare various means of transport by time and costs you can use the website www.rome2rio.com : simply type in your current location, your destination and the date of travel and Rome2Rio will display time and costs for bus journeys, train journeys, plane and car travel.

In case you only would like to compare flights, www.skyscanner.net Is the most comprehensive flight comparison portal.

By planning the means of transport and comparing them well ahead of your departure, you will be able to save a significant amount of money which you can use upon your arrival.

Enjoy your trip!

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Macron’s win and the global economy

As one of the strongest economic powers in the EU, France’s recent election outcome is sure to have a dramatic impact on global currency exchange. The euro itself has been on…

As one of the strongest economic powers in the EU, France’s recent election outcome is sure to have a dramatic impact on global currency exchange. The euro itself has been on the decline for years, and whether the new appointment of Macron will reverse this trend or exacerbate it is currently up for debate. Much still relies on Macron himself, and the ultimate effect he will have on the world economy depends largely on upcoming political appointments, as well as his initial success in office.

macron_money_transfer

The short term

The few days immediately after the election indicated a stronger EU economy under Macron. Even before his victory was officially announced, the euro rose to 1.1023. This marked the first increase since the day following Donald Trump’s election in November 2016. As of May 11th, the euro closed at just over 1.09.

While the initial jump immediately after the election appears to be temporary, with rates returning to their usual low shortly after, the surge may forecast a long-term rise. There is still much speculation about euro prices to be had, as Macron has yet to prove his effectiveness in office. The next major step expected to affect currency prices will be the appointment of his prime minister, parliamentary candidates, as well as other important positions.

Looking forward

Although the euro remains low, it may be wise to remember that it remains a full 20% to 25% up from where it was at its introduction at the beginning of 1999. Keeping this in mind, we can recognize that Macron’s victory will play a small but important role in the overall picture of the European and global economy.

From one perspective, the election results seem to have stemmed the tide of what some were calling a worldwide wave of right-wing nationalism. Having beaten the notably conservative Marine Le Pen, Macron espouses centrist politics but has been described as a social democrat. And while he has a history of being involved with his country’s socialist party for years, he is a strong advocate of the free market, which some speculate could lead to a more substantial boost to the Euro’s value.

Global effects

The effect of the Macron win in France’s general election is still too small to feel on a global level. The pound still reels in the wake of Brexit, while the USD continues to fluctuate under the leadership of Trump. However as the new president-elect continues to appoint new members of the French government, France’s position in the global economy will begin to solidify. Supporters of Macron are optimistic that their candidate’s centrist politics will be a boon to global currency exchange.

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