When you need to transfer large amounts of money internationally, it’s vital to get the best deal. Comparing exchange rates, personal service, reliability and more means your currency exchange will go much further. Here at Monito, we want to help you — that’s why we’ve done the work and put together this comprehensive guide to high-value transfers. We’ll cover:
The world is becoming much more accessible to everyone, so transferring money at a good rate is crucial to your goals and quality of life. People make high-value transfers (typically over $10,000) for a variety of reasons:
Whatever your reason for making a high-value foreign exchange transaction, there are several factors that will have a big influence on how much money you send in your native currency and receive in the new one.
The main areas that impact the deal you get from your currency exchange company are:
Here’s an illustration of the difference getting a good exchange rate can make to how much money the recipient receives.
We’re going to convert 50,000 British pounds into US dollars. Here’s what that means based on typical exchange rates. In the table below you’ll see how much £50,000 is worth in dollars using various providers.
(baseline interbank rate)
|Typical FX Provider||PayPal||Typical bank|
|Loss in dollars||0||$244||$1,749||$2,284|
|Loss in %||0||0.40%||2.96%||3.90%|
As you can see, the exchange rate makes a significant difference to the value of your FX transaction. Using a bank like HSBC, Barclays, or others for international transfers can mean you’re up to 4% worse off.
That’s why you should always choose a specialized currency provider who can provide much more competitive foreign exchange rates.
Our simple online comparison tool lets you understand exactly how much you’ll receive from many different currency providers around the world.
Most foreign exchange providers don’t charge additional fees for high-value transactions, but there are some exceptions.
Banks will often charge a flat fee in addition to providing poor exchange rates. For example, on a £50,000 currency exchange, Barclays would charge an additional £28. They’re not the worst culprits for fees though — for that, you need to turn to PayPal.
PayPal doesn’t provide good exchange rates to begin with. To compound that, they then add an additional fee (between 1% and 3.9% for £ to $ conversions). This fixed fee can significantly impact the amount the recipient gets. On the £50,000 transaction, that additional fee comes to around £500 and could go as high as £2,000!
Some banks and financial institutions do charge to send and receive currencies into accounts, especially if your FX provider does not have local pay-in or pay-out accounts in your country. Although these fees are not normally that high, you need to pay attention for two important reasons:
You should speak to the sending and receiving banks to understand any fees that are likely to be levied and plan for them.
The currency exchange process is straightforward. Although it varies from provider to provider, it will follow these steps.
If you’re transferring large amounts it’s important to limit your risk as much as possible. There are several steps you can take.
You will need an understanding of your end-to-end, total costs including exchange rates and any fees. Our foreign exchange comparison tool shows you exactly how much you can expect to pay and receive.
Some currency providers will assign a specialized account manager to take care of your currency exchange needs. This is especially true if you’re transferring large amounts. They can walk you through every step of the foreign exchange process so you know exactly what’s happening at every step. In some cases you will even be able to negotiate your exchange rate with the account manager and get a better deal.
Good customer service is vital when you’re transferring large amounts. Our reviews section highlights currency providers who have excellent customer service.
Forward and limit orders can help protect you from exchange rate variations. A forward order lets you set a rate now for currency exchanges that you’ll complete in future. A limit order means your currency exchange will only happen when certain conditions are met, for example the exchange rate hits a certain value. Talk to your provider about these types of orders.
One of the best ways to manage your risk is to read reviews of foreign exchange providers so you can make an informed choice. Here at Monito we provide expert reviews, customer reviews, and video reviews so you can get the information you need. We’ve included information about several of the most popular currency exchange providers below.
We’ve listed several of the most popular options for international currency exchange providers below, together with the pros and cons of each.
If you want to get the most value out of your high-value transfers, here are a few extra hints and tips.
We hope this has given you the insight and confidence you need to manage your high-value currency exchange needs. Here at Monito, we specialize in helping you find the best deal for sending money internationally. Please do get in touch and we’ll be glad to help.