Cheaper Ways to Transfer Money Overseas - YouTube

Transferring money overseas using your bank can be one of the easiest ways of

doing it. But it can also be the most costly.

In this video we're going to look

at three cheaper ways of transferring money overseas; money transfer companies,

peer-2-peer transfer companies and money remitters. We'll fill you in on how

they work and we'll suggest when you should consider each one. After watching,

you should have a better idea of the best way for you to transfer money

overseas.

Okay the first option is using a money transfer company like OFX or TorFX.

This is generally a much cheaper way of transferring money overseas

because of their exchange rates and lower fees. Sometimes it can take a bit

longer than using your bank for a couple of reasons;

setting up an account can take up to 48 hours to be completed depending on the

company you use. And when you actually make a transfer it could take a day or

two longer. The extra effort is well worth it though. We would suggest using

them any time you're making a transfer of more than $1,000.

Because they're generally much cheaper than your bank.

Peer-2-peer transfer companies are very similar. The difference is they don't

physically transfer the money from one country to another. They match your

transfer with one going in the opposite direction,

saving the need for money to cross borders. They include companies like

TransferWise or CurrencyFair. The benefits are similar, their rates are

generally better and their fees are often lower. You still need to set up an

account but the transfer itself can be a bit faster. These companies are a good

option when you're transferring anything up to about $10,000.

When it comes to making smaller transfers to family and friends you could consider using a money

remitter. They're especially good for amounts up to one thousand dollars and

to countries like the Philippines or India. World Remit an InstaRem fall into

this category. And companies like this often offer cash pickup which means you

can send the money to family and friends and they can pick it up within minutes.

They often have maximum transfer sizes so we would suggest using them when you

need to make a small money transfer overseas but they could be your only

choice if you want the person you're sending the money to to pick up physical

cash.

So we've provided you with some options and you know the process is different to

using your bank. So how does it all work? First, you'll need to register your

details so make sure you have some identification with you. Some companies

require both photo ID and proof of address. Next, you'll need to enter the

bank details of the person you're transferring the money to. These details

will depend on the country they live in. Finally, you'll need to pay for your

transfer. Each company has different ways of doing this including bank transfer,

BPay or credit card. Now, obviously this is a bit more work than simply

logging into your internet banking and making the transfer. But the money you

can save is well worth the effort.

At the end of the day, the higher the amount

you're transferring, the more important the exchange rate becomes. Which is why

it's really worth exploring your options for anything over $1,000. We'd say any of

our suggestions are good for transfers up to $10,000 and a money transfer

company is usually the way to go for higher amounts. Especially if it exceeds

$50,000. The easiest way to find the best option is to use a comparison table like

ours which will allow you to compare the rates of large reputable and secure

money transfer companies in one place.