Look beyond your bank. While it may seem like the simplest option to transfer money with your bank, it could cost you big time. To keep more of your hard earned cash, use a specialist money transfer provider like OFX, whose margins and fees are significantly more competitive.
Lock it in. Exchange rates fluctuate by the second, so if you’re not able to watch the currency markets, you could get shocked if your currency suddenly tanks before your transfer. Look for a provider that bases their price on live exchange rates and make sure the rate you’re quoted is the rate that you’ll actually receive.
Look for a company that lets you lock in your rate when you book a deal. If you’ve got a future event coming up like a property investment deal, using a Forward Contract will let you lock in and keep that rate for up to 12 months, so you know what your money will be worth even if you don’t want to send it yet - keeping cash flow predictable.
Stay alert. Money moves fast and with today’s busy lifestyles, it can be hard to keep up. Fortunately, it’s easy to sign up for notifications that message you when your currency pair is on the move. Some specialist money transfer providers also offer Limit Orders, automatically transferring your money when your currency pair hits a desired rate. These types of products are ideal for people who have flexible dates for sending their money.
Spread it out. If you need to transfer larger amounts of $100,000+, you could benefit from making a series of smaller transfers. This non-binding strategy may allow you to profit from favourable fluctuations and can help mitigate your exposure to sudden market shifts. Do be aware that this strategy may also incur more bank transaction fees for you and your recipient.