Are you planning to send money to a stock broker overseas? Well, this guide will discuss the best practice for making international money transfers. The factors discussed will ensure that you do not make costly money transfer mistakes. These factors in most cases affect both the sender and the receiver.
Choose companies that are trusted
Choosing the right company to transfer your money is the first step to cutting down on the cost to send money as well as to send it safely. Governments are tightening their control on money transfer services to deal with terrorism.
That means you need to use companies that are allowed and licensed to send money to most countries. If you use the wrong company to send funds, they may be frozen for a set period before your recipient can withdraw them.
Hidden Money transfer fees
There are several ways that money transfer services use to meet their operation costs and make a profit. There are also charges that their agents add on to the service they offer. These are:
• Account Opening Fees
• Money Transfer Fees
• Agency Withdrawal Fees
• Account Maintenance Fees
• Exchange Fees
• Sending Fees
The above fees may not be stated outright, but you need to ask any money transfer service about them. These fees in most cases are stated in the form of a percentage. That makes them quite punishing when you are sending large sums of money.
Other money transfer services have set minimum charges for one to use their services, which make the transfer of small amounts quite expensive. If you haven’t fully understood the transfer fees plan of your preferred money transfer service, then you are not using the best practice for making international money transfers.
Here are some good articles for further reading on fees, and services.
Many money transfer services allow you to maintain a virtual bank account that allows you to operate an account in your receiving country of choice. Although such accounts are only available in select countries, they may be beneficial if your receiving country is among them.
One can choose to either use their local agents in the receiving countries, Debit Cards, or bank transfers. Bank transfers are the best for large amounts. Medium amounts can be withdrawn using Debits cards while small amounts can be withdrawn using agents.
With recent terror events around the world, countries are trying to control the flow of money around the world. That means that you cannot just send money to someone if they are not registered with a financial institution.
If they are not registered users, then they need to come with some form of identification. They also will be limited on how much they can withdraw each time. It is important to confirm what restriction the recipients must overcome to access the money immediately, and how much they can access at a time.
Customer service is the final and one of the most important things to consider when sending money to someone. A poor customer service will not only frustrate the recipient in case there are problems but you as well.
You need to know you can get assisted at any stage of the transfer if it is not an instant transfer. Transfer of large sums of money is never instant in most cases because they use international bank transfer protocols.