Are you searching for the cheapest method to transfer money internationally? Do you think direct bank transfer is the cheapest way to transfer money abroad?
If you think bank transfer is the cheapest way to transfer money abroad, you will know if you are wrong or right at the end of the blog. Additionally, if you are searching for the cheapest way to transfer money overseas, you will also get to know which way costs you cheaper.
Traditionally, banks were the only options by which international transactions were possible. However, with the advancement of time and technology, the situation has completely changed these days. There are a plethora of other alternatives, that are even easier, more efficient, and cheaper.
In our previous blog, we knew almost everything about making the overseas payment. It also included a few most common ways to make overseas payments. Since that post couldn’t specify which is the best and cheapest way to transfer money abroad, we are here again to make you aware of it. In this blog, we will identify the cheapest way to transfer money abroad. Before jumping directly into it, let’s find out the factors affecting international money transfers.
Factors Affecting International Money Transfer Fees
Speed
One thing that affects overseas transfer fees is the transaction speed. Normally international transaction takes time. Major reasons for the slow transaction speed are currency conversion time, regional time zone, slow fraud prevention, etc. Depending on the time the transaction is made, the recipient’s currency may experience an increase or fall in value.
How quickly the beneficiary requires the money also affects the cost of an international bank transfer. If the parties involved must speed up the transaction – for example, by choosing a same-day option – then additional fees will be incurred. Generally, overseas payments take three to five days.
Financial Service Provider
If the financial service provider is not trustworthy then, you might face various unnecessary obstacles and stress during the transaction. You shall also result in a delay in the transaction and even loss of funds. You are advised to choose your service provider wisely. Choosing the wrong service provider might even as you more service charges.
Hassle-Free Process
Everyone prefers the hassle-free process while making cross-border payments. However, most of the banks and fintech institutions have hassle-free processes. They can take several days just to verify your business and they might ask for unnecessary documents for proof. Additionally, it can cost you an unnecessary waste of money.
Fees Associated With International Money Transfer
One of the major factors that affect international fund transfer is the fees associated with it. If you have previously made an overseas transfer you must be aware that, it is quite expensive compared to domestic transfers.
Some of the major costs associated with the international money transfer are :
Foreign Exchange Rates
An important factor in determining the cost of sending money overseas is exchange rates. Exchange rate fluctuations may impact the amount of money that recipients receive, resulting in unfavorable expenses. It is vital to understand the volatility of exchange rates and encourage your service provider to provide an exchange rate that minimizes losses incurred during overseas payments.
Know More About Foreign Exchange Services.
Know More About The Factors Affecting Foreign Exchange Rates.
Transfer Fees
Banks and other financial corporations typically impose fees when sending money abroad. These costs may vary, depending on who you opt to rely on. Nevertheless, there are instances where using traditional methods involves excessively hefty fees, which reduces the amount of money the receiver receives.
Hidden Charges
Sometimes, there might be unexpected hidden fees when sending money through certain financial institutions. Both the individual sending the money and the person receiving it may find this annoying. Even less amount reaches the receiver because the institutions involved with the transfer may additionally put on additional costs. You need not be concerned about any additional fees when using Walcybank, though. You can be certain of the exact amount you are sending and receiving by using their straightforward and uncomplicated transfer process.
Top 5 Cheapest Ways To Transfer Money Abroad
After knowing the factors affecting international money transfers and the cost associated with it, let’s find out the top 5 cheaper ways to send and receive money abroad.
Walcy
The first on the list is Walcy. Transferring funds with Walcybank is one of the cheapest because of its foreign exchange rates. It provides real-time value with unbeatable mid-market currency rates as compared to the competitors. Moreover, it also charges minimal transaction fees which saves your costs during overseas payment.
Revolut
If you are looking for another reliable and cheapest way to transfer money abroad, you should consider using Revolut. It is not just cheap but also the most reliable fintech solution. With Revolut’s multicurrency account, you can manage up to 28 currencies at once. One thing that makes Revolut cheaper is its currency exchange rate. There are no annual and monthly fees in its normal account.
World remit
If using Neobanks like Walcy and Revolut is not what you want, you also have alternatives to use money transfer services. It’s crucial to consider exchange rates and costs when selecting a service to send money abroad because not all providers charge the same rates. Exchange rates vary across different services. With WorldRemit, customers may send money to individuals in over 130 countries at one of the lowest exchange rates. If you want to compare with competitors and if affordable costs, favorable exchange rates, and speedy transfers are your main concerns, WorldRemit is the best option.
OFX
Another alternative to the cheapest way to send money internationally is using OFX. If you want to use a money transfer service with a cheap and transparent fee structure, OFX ranks among the best alternatives. It currently charges no transfer fee and also provides the best foreign currency exchange rate based on the mid-market rate. Since it has no limit for transferring money, It is mostly used for making bigger transactions.
Paypal
If you are looking for a peer-to-peer transaction, then PayPal could be the better alternative for you. Moreover, PayPal is cheap if you are making domestic transactions. However, since you can get payment receipts with Paypal it would be more secure to make payments with it. If you need to make cheap international transactions we recommend you to go for other above-mentioned options.
Find Out The Top 10 PayPal Alternatives Here.
Conclusion
Overall, the international exchange rate is the major factor that makes the overseas transfer costly. Moreover, other transfer fees and hidden costs do play a crucial role in making it expensive. If you choose the better International transfer service provider, you are likely to save a huge amount of money. The most trustable, reliable, and cheapest cross-border money transfer service provider is Walcy, followed by Revolut, Worldremit, OFX, and Paypal.
FAQs
What is the cheapest way to transfer money abroad?
Using Neobanks like Walcy is the most efficient and least expensive way to transfer money internationally.
Which money transfer service has the lowest fees?
In the case of Neobank, Walcy has the lowest fees while in the case of money transfer service providers, Worldremit has the lowest fees.
Which app is best for international payment?
There are several options for making international payments. Walcy app is one of the best apps for international payment.
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