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Last Updated on May 7th, 2024

Looking to send money abroad and save thousands? You may find a currency broker a better and cheaper way than using a bank or online app.

(1) You have your payment details checked

One common mistake in international money transfers is with the beneficiary details (where you want your money sent).

Plenty of places leave you to your own devices, and inevitably mistakes happen and money goes missing.

We hear it all the time from customers who have dabbled with online platforms. It’s why we double-check the details to prevent problems.

It can take a long time to recall missing funds from foreign banks, so prevention is better than cure..

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(2) Guidance on exchange rates

A lot of customers find it difficult to know the right time to exchange their money.

Exchange rates change every few seconds.

It probably isn’t the best use of your time or energy to watch exchange rates move around all day.

While no one has a magical crystal ball, you may find it very useful to speak to someone who is familiar with the daily patterns in rates and is aware of upcoming news and events.

A currency broker can work with you to achieve a favourable rate and avoid market risk, potentially saving thousands in the process.

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(3) You know what’s happening with your money

No one wants to be left in the dark.

Particularly if you are sending a large sum of money.

It’s perfectly reasonable to want to know where your money is when it’s been sent out, and when it’s due to arrive at the other end.

You’d be amazed how many money transfer companies don’t bother with basic communication.

A good currency broker will talk you through the money transfer process, and keep you informed at every stage!

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Banks and currency brokers compared

If you need to send currency abroad, you have a choice of whether to use a bank or a currency broker.

As a general rule, banks charge up to 4%-5% for currency transfers.

Currency brokers will normally cost a lot less, so it’s best to get a comparative quote.

A currency broker can provide:

• More competitive exchange rates
• Lower (or no) fees, and
• Hands-on help and guidance
• Faster processing times

The customer gets a better deal all around.

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Compare Our Rates

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Quick Summary

Currency brokers offer an alternative to banks.

The main benefits of using a currency broker are:

• Competitive exchange rates
• Low or no transfer fees
• Faster transfer times
• Guidance on exchange rates
• Making things easier for you

Key Currency is a leading UK currency broker.

We can help you achieve a great exchange rate and won’t charge you any fees for your transfers.

We aim to take the stress and hassle away from money transfers by doing all the hard work for you.

As part of our service, we can discuss and agree on the right time to exchange your money, and you can speak to the same person at all stages of your transfer.

We have gained a 5-Star “excellent” rating on the customer review site Trustpilot based on over 1,700 individual reviews.

Key Currency is an FCA Authorised Payment Institution (No. 753989). You have the peace of mind of knowing that all money transfers are conducted through safeguarded client accounts.

If you feel our service could be of use to you, please request a free quote below.

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Get a Quote

 

Author,  Andrew Gibson

Last Updated on June 4th, 2024

Sending money abroad is not complicated once you understand the process.

I’ll explain how a transfer works, how long it takes, the information you will need, and the cheapest ways available.

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How to transfer money abroad (in 4 simple steps)

Step 1 – Register as a client

All new clients need a basic ID check.

This is a legal requirement due to financial regulations.

It only needs to be done once.

For most people, the ID check can be quickly done using your name, address and passport number.

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Step 2 – Lock-in an exchange rate

After you’ve registered, you can get your transfer underway.

Whenever you’re ready, your bank or money transfer company will quote you a current exchange rate.

Nothing will happen without your consent.

If you are happy to go ahead, your rate will be locked-in, and you will be emailed a confirmation with all the details of your transfer.

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Step 3 – Pay for your transfer

Before any money is converted and transferred abroad, you need to pay for your transfer.

Your bank or money transfer company will provide you with the bank account details of where to send your money.

Banks require your money upfront. Money transfer companies normally give you 1-2 working days to send your money in.

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Step 4 – Your money is converted and sent out 

Once your money is received, your bank or money transfer company to convert your funds into the currency needed and transfer it to the bank account you’ve requested.

In practice, the whole process is usually quick and easy.

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How long does it take to send money abroad?

The time taken depends on the destination country.

Within Europe, transfers are faster and typically take 1-2 working days. Outside the European Union, it can take 3-5 working days.

The reason it varies is largely due to the efficiency of the receiving bank.

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Information you will need to send money abroad:

You will need to have the details of the recipient bank account (where to send the money):

• Account name 
• Bank name 
• Swift/BIC code
• Account number

You can get all this information by looking at a bank statement, logging into your account online or asking in a branch.

A money transfer specialist can assist you and help double-check the details before you transfer your money abroad.

Cheapest ways to send money abroad 

To send money abroad, you can use either a bank or a money transfer company. 

When making cost comparisons you need to consider both fees and the exchange rate.

A money transfer company is normally a cheaper way to send money abroad compared to a bank as the fees are lower and the exchange rates are more competitive.

The are many money transfer companies to choose from.

Some charge fees, while some don’t.

It depends on the amount you transfer.

The exchange rate also depends on how much you’re sending.

It makes direct comparisons difficult.

For smaller amounts, I would suggest using online apps such as PayPal, Transferwise, CurrencyFair and Revolut. If you are sending a larger amount, it makes better sense to use a money transfer service.

A money transfer service has some additional features compared to an online app.

Some services can monitor exchange rates for you and will help you set-up and check the payment details.

What’s more, they don’t have any daily transfer limits like the apps and can waive all the fees.

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Compared: Banks vs Money Transfer Companies

How much does it cost to send money abroad?

The big banks used to have the foreign exchange market to themselves.

Now there are alternatives available – often much cheaper.

Our research found that the ‘big four’ UK banks typically charge 3% to 5% when you transfer money abroad.

The exact cost varies depending on the amount you are sending.

As money transfer companies have far lower overheads, they can reduce the charges.

The overall charges can be 60% to 70% less using a money transfer company.

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Watch out for annoying transfer fees

Most of the big banks charge a flat fee every time you transfer money abroad.

The transfer fee varies from bank to bank but is in the region of £10-£25 per transfer.

These fees are in addition to the money made from the exchange rate.

Some money transfer companies also charge transfer fees.

Others, such as ourselves, are happy to waive them altogether.

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Daily payment limits 

If you plan to send a large amount of money abroad, be aware that banks often have daily limits.

Here are the daily payment limits of the UK’s Big Four:

• Natwest: £25,000
• HSBC: £50,000
• Barclays: £50,000
• Lloyds: £30,000

The daily limits can be a nuisance.

If you use your bank, you may need to make several transfers, which would end up costing you more in transfer fees (not to mention the extra time and hassle).

Are all money transfer companies the same?

The simple answer is no.

The differences may not be apparent by looking at the logo or website, but the cost and service provided can vary considerably.

Many money transfer companies are really just online platforms or apps.

The more popular names are PayPal, Transferwise, CurrencyFair and Revolut.

Once you get given a login, the customer has to enter all the details and information themselves and decide on when to transfer their money.

They suit some customers, but not others.

I’ve found a lot of people would rather get some human assistance as long as the cost is competitive.

Here are three benefits of our service:

1. Someone will check the details of your payment are correct

2. You can get guidance on timing and exchange rates

3. You’re kept informed at every stage

 

Is it safe to use a money transfer company?

A quick tip is to make sure a money transfer company is Authorised by the Financial Conduct Authority (FCA).

The reason this matters is that Authorised companies must adhere to strict safety rules covering client funds.

An FCA Authorised money transfer company is required to keep all customer money in a safeguarded bank account.

To see whether a firm is Authorised, you can search for its name on the FCA register.

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Quick Summary: Transfer Money Abroad

• You can use a bank or money transfer company.
• It takes 1-2 working days to send money within Europe, and 3-5 workings days to other countries.
• There are two costs to look out for: transfer fees and exchange rates.
• Banks can be a lot more expensive than money transfer companies.
• Some money transfer companies offer personal assistance; others are online-only platforms.

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