Wherever you go, you will always need access to your personal funds. You will need a way to pay for accommodation, food, and any other daily expenses when living in a new country. The immediate cost of moving abroad can surprise many people, with funds required for deposits and to support yourself and your family before work and local bank accounts are established.
From the beginning of the international relocation process, you may need to transfer funds from home to abroad. After all, cash is not a practical way of transporting cash to many countries. But how is this possible? Let’s take a look at some of the best ways to do this.
How to Move Money Abroad Cheaply
There is no simple answer to this, in most cases. Comparison of all the methods on offer is often the best way to ensure you are getting the best deal possible. It might also be a good idea to transfer big sums in smaller, regular payments, but it will depend on the transfer method. Without shopping around, you might end up paying far more than is ever necessary.
International Bank Transfer
Also known as a wire transfer or telegraphic transfer, an international bank transfer is one of the most popular methods of transferring money abroad. This can be carried out by a bank or a private money transfer company within about 4 working days, depending on the recipient country. If you are moving to Europe, money transfers are typically quicker than on other continents. Legally, there are no limits placed on how much money you are allowed to send abroad, though your individual bank may set internal limits.
There are, however, costs involved in international money transfers. There is typically a fee that is charged per money transfer which is either a flat fee or a percentage of the money sum taken by the transfer company or bank. On top of this, there is also a less obvious cost in the poor exchange rate often offered by such organisations. These are often not published publicly and you must call or log in on the day to discover how much your money will be worth in your recipient country.
Bank to Bank Transfers
A number of banks will actually allow international money transfers to banks that are linked, which are usually branches of the same organisation. If the two accounts are compatible, this can be the cheapest way to move money abroad or pay a friend overseas. This method can often be restricted by country, i.e. only possible for countries within the EU. If possible, this can be a secure, free, and fast way to transfer money abroad. Make sure to read the terms and conditions of this service before going ahead.
Specialist Currency Brokers
Another option for transferring money abroad is to enlist the help of a specialist currency broker. These companies function by purchasing and selling large amounts of foreign currencies to offer competitive exchange rates, often within 1% of the rate at which banks borrow from each other. Along with good exchange rates, these companies can often send money without charging fees, so the only fee you will need to pay is the margin they set for their exchange rates.
If you are using a specialist broker, it’s worth trying to bargain or negotiate with the sender. If you are transferring regularly or a larger sum of money in one go, this is often a good position to negotiate from, as the company stands more to gain. As always, shop around for the best deal.
Money Transfers with GMS XTRA
As an expert professional international removal company, Global Moving Services understands the importance of making your money go as far as possible in your new home. That’s why we have our own currency exchange service as part of GMS XTRA. With competitive exchange rates and regular currency updates, there are countless advantages to transferring money with GMS XTRA. To find out more, contact us today or register for your free account.