Using a foreign exchange service can be beneficial whatever your reason for making an international payment is. Whether it is a one-off currency transfer, because you need to set up regular payments for a mortgage, education fees or property maintenance costs, or are planning to move overseas, it helps to understand more about your options.
If you are not familiar with the currency market, your high-street bank may seem the obvious choice to handle your payments, but their transfer fees and poor exchange rates can make it an expensive one. Using a specialist currency exchange service, in contrast, can have a number of benefits, which include:
- Value for money
- Forward planning
- Ease and convenience
- Specialist tools
- The personal touch
This article explores all of these benefits and how they could help you save time and money on your currency exchange.
1. Value for money
There are two main cost factors when sending money abroad and opting to use a currency exchange service can help with both:
- Exchange rate While most high-street banks can provide a transfer service, they usually add a fixed percentage – called the interbank rate – on top of what you see online. In comparison, currency specialists can often offer a better exchange rate because, unlike banks, they can source competitive rates from several liquidity providers. For example, the Telegraph Media Group’s partner, Moneycorp, sources the most competitive rate from its panel of 18 liquidity providers.
- Fees Also, high-street banks often charge transfer fees of up to £30 for a single international transfer. If you are making a regular monthly payment, this could amount to hundreds of pounds a year in unnecessary fees. Currency transfer specialists only deal in foreign exchange services, so the daily volume of transactions gives them stronger purchasing power, so services such as the Telegraph Media Group’s International Money Transfers can offer zero transfer fees.
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Customers of the TMG International Money Transfer Service exchanged £123 million last year.
2. Forward planning
The best currency specialists also provide tailored guidance to help you understand the market’s fluctuations and how they might impact you. The currency market is naturally volatile because of its liquidity and how it is affected by global events. Currency exchange services can employ risk management tools and expertise to help you protect yourself from this volatility and prepare for the future.
For example, if you need to make regular money transfers, you can fix the exchange rate for future payments for up to two years using a forward contract.* In addition, some providers, such as Moneycorp, can notify you of relevant rate movements and place market orders so you can book transfers at your preferable rate if it is reached.
3. Ease and convenience
Many international payment providers operate with hybrid services, providing you with a secure online account and access to excellent personal customer service. This means you can make transfers and manage your payments quickly and easily, in any country or time zone, either online or by calling your account manager. Whether transferring currency outside the UK or receiving money from abroad, having these options can make a big difference.
You can also make a one-off international money transfers or set up regular payments, whether you need to repay the mortgage on your holiday home, pay education fees, or send regular funds to family overseas. This means you don’t have to waste time manually making your overseas transfers whenever you need to send funds.
4. Specialist tools and products
One of the most valuable features of using a great international payments specialist is access to specialist currency tools. These cover a range of use cases and are designed to both simplify the process and help you optimise your budget.
Here are some examples of the tools you will have access to through the Telegraph Media Group’s International Money Transfer service:
Forward contract
As mentioned, this is an agreement between two parties to exchange two designated currencies at a specific rate for delivery or payment in the future.
Spot contract
This is the simplest contract. The price is quoted and booked for immediate delivery. This method is often used to make a one-off smaller payment or when you have a limited time frame to make the payment, for example, a deposit for a house purchase.
Market order
This allows you to set up a target rate at which you are willing to complete a transaction. It is a great tool when you are optimistic that the exchange rate might improve.
Stop-loss order
This will help to protect your transaction from going below a specific rate. This tool could be handy for those with a range below which the transfer becomes unaffordable or too costly.
5. The personal touch
Using a specialist provider for your foreign exchange requirements will give you a personal service unique to your needs. With the Telegraph Media Group’s International Money Transfer service, you will also have a dedicated account manager who you can contact directly. They will be on hand to answer any questions, provide updates and give you guidance to help you navigate the currency market with confidence.
They can help you design a strategy around your investment priorities and risk appetite, empowering you to make decisions about your international transfers.
Sometimes you might want to speak to an expert to put your mind at ease. Technology may be what gets your money from A to B, but having someone to call when you need expert assistance concerning your hard-earned money is an indispensable and reassuring part of the process.
Send money overseas today
The currency market is hard to predict but specialist foreign exchange services can help you protect yourself against volatility risk with risk-management tools that offer value for money, convenience and peace of mind for the future.
The Telegraph Media Group International Transfer Service is provided by foreign exchange service Moneycorp to offer no transfer fees and great rates in more than 120 currencies, as well as access to currency exchange experts who can personally guide you through the process.
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Open an account today to find competitive exchange rates, plus no transfer fees via Telegraph Media Group International Money Transfers
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*Forward contracts may require a deposit
Be aware of currency risk.
The above article was created for Telegraph Financial Solutions, a member of The Telegraph Media Group. For more information on Telegraph Financial Solutions click here.
None of the information contained in this article constitutes, nor should be construed as financial advice. TTT Moneycorp Limited (company number 738837) is registered in England. Its registered office is at Floor 5, Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ. Moneycorp is a trading name of TTT Moneycorp Limited which is authorised and regulated by the Financial Conduct Authority for the provision of payment services (firm reference number 308919). Date of approval 05/06/2023
