OFX – Do you need to transfer funds internationally? Perhaps you need to send money from the US, UK, Australia, Canada, Europe or Hong Kong to another county. Are you relocating, transferring an investment, buying property and have the need to transfer a larger sum of money? Or are you transacting for your business, paying suppliers or opening a new international office? If you are moving over $10,000, you may appreciate speaking with a professional to assist you with your transfers and to receive a better rate. There are a few key ways to reduce the time and costs commonly associated with the international fund transfer process. Jason Kumpf, Director of Strategic Partnerships at OFX Global Money Transfers helps accounting, financial advisors and international clients utilize simple techniques to save time and money when they send funds. He offers his suggestions on how to receive a better foreign exchange rate from his experience in the industry at OFX, which has helped deliver over $100 Billion for clients.
From international transactions professional, here are Jason Kumpf’s suggestions on how to transfer funds internationally, for relocation, real estate purchase, company expansion or a thousand other reasons:
1. Use the Yahoo Finance Currency Converter to check the foreign exchange rate. Then, Jason Kumpf of OFX Global Money Transfer recommends registering up with a Foreign Currency Transfer and Exchange group. Then you can converse with a foreign currency expert well in advance of your intended transfer. After registering, you will be able to receive live quotes of the currency pairs of interest and be set up to receive better rates.
2. Stay up to date on the currency pair you need to exchange. Utilize your foreign currency exchange group’s free tools such automatic rate alerts. Establish rate alerts to receive messages when the currencies reach the rate you desire. You can easily accomplish this with an excellent foreign exchange group, even booking limit orders if you are aiming to book deals once the market reaches your target price. Jason Kumpf says that clients and partners appreciate the rate alerts and limit orders. These simple tools can keep them from missing opportunities when currency prices fluctuate.
3. Compare the service and currency rates from your bank to the service and rates from your new foreign exchange group. You may be surprised by the difference between what you receive from your bank compared what you receive from the foreign exchange groups. A foreign exchange group should offer you a better service and rates than what you are used to being offered because that is their focus. Many financial groups can include a hidden margin in the exchange rate they offer you that can result in a hidden cost of a few percent to your transfer. On a $100,000 transaction, you could be overpaying by a thousand dollars with a poor rate, that you could have avoided. Jason Kumpf says; “There is usually a nominal $40 transfer fee, but the real cost can be in receiving an unfavorable rate.
4. Learn more about the foreign exchange rate market. Some financial groups may offer poor service and rates, especially if you are only sending tens of thousands to even a few million. Those amounts may not be enough to receive the best foreign exchange rates or qualify you for the best service. Remember, the daily foreign exchange volume is tremendous. So, unless you are dealing with a specialist currency exchange group that focuses on clients like yourself, you could be overpaying for your currency and not be experiencing the service you deserve. Jason Kumpf says; “Besides the rate, having a helpful person to call 24 hours a day, regarding transactions, can be a huge advantage for a business or individual.” Your typical banker is focused on lending, and foreign exchange is usually not their focus or expertise. Your dealer at a foreign exchange group is 100% focused on helping you with your foreign exchange transactions and works all day long only on international payments. They have the global expertise that can properly assist you.
5. Open your foreign exchange account in advance of your intended transfer date. There are many advantages to taking the ten minutes to open your account early. You don’t want to miss out on the potentially better rates if you become too busy and don’t have the documents you need with you, and it ends up taking longer to open your account. Because there may be extra documents you need to provide if you are sending over $10,000, it is wise to open the account early. In addition, it usually takes a business account a few days to be opened. Plus, you will have more time to choose your rates, versus being forced to take the rate on the final day you need to send the funds. Most groups do not charge any fees for opening an account and receiving quotes, and you can speak to a foreign exchange specialist to be informed about the rates months in advance of your transfer.
6. Find a high-quality group that offers 24-hour seven days a week in-house live agent support with an easy to use online platform. Jason Kumpf of OFX Global Money Transfers suggests using a larger, established foreign exchange money transfer group that offers both online and live agent support. You want to make sure that if you are traveling or need to speak to someone after traditional banking hours, you can do that. Also, it helps if the foreign exchange experts you talk with are in your country and are familiar with your circumstances, not an outsourced call center agent. Some groups have agents that help with personal transactions, and other usually senior dealers that specialize in corporate transactions.
7. Importantly, consult your financial advisor, accountant, and or tax professional before making any financial decisions. Many advisors, accountants, and cross-border groups partner with foreign exchange groups to offer their clients the latest tools and services to improve their clients’ international activities. If yours doesn’t, you can bring tools to them for their opinion.
In conclusion, when you want to transfer funds globally at the best rates, Jason Kumpf says: “If you want to possibly save a few percent on your currency exchange rate simply and securely, you may want to speak to a foreign exchange group.”
Posted by OFX