To celebrate the launch of John Mason International FX, here are our top 5 tips to ensure you don’t lose out uneccessarily on your overseas payments.
Check out bank-hidden fees carefully.
High street banks can charge up to 5% of the value of your transfer, with hidden fees built into the exchange rate. On a £100,000 transfer, this can cost you in real money terms, up to £5000. That’s a lot of money. They may tell you they offer free money transfers, but always look at the difference between the ‘real exchange rate’ and the ‘rate you are offered.’ Whether you are emigrating, buying overseas property or paying suppliers, it’s useful to consider FCA authorized and regulated currency specialists.
Avoid we offer 0% commission, it’s not true!
Banks and opaque currency brokers push out marketing slogans such as ‘we offer 0% commission’ but absolutely don’t equate this to free money transfers. There is no such thing as a free lunch. Every time you make a currency transfer, consider two types of fees, the transaction costs (banks can charge up to £40 per payment) and the more ‘hidden fee’ built into the exchange rate.
Always calculate the total fee including all fees and exchange rate charges. This will help you get a true handle on what your international payment is costing you.
Beware of the broker honeymoon rate
Without question, non-bank FCA regulated currency brokers offer far more competitive exchange rates. But still, buyers beware. More opaque currency specialists may offer you a fabulous exchange rate on trade one, only to widen and widen the exchange rate margins as you become more comfortable using their service.
Consider a forward contract
Forward contracts can reduce the risk of your international payment from increasing in cost. A forward contract lets you fix the exchange rate for up to 12 months in advance, thus protecting against adverse currency fluctuations. You pay a small deposit up front, and settle the balance at an agreed date in the future. This can be particularly helpful if you are buying an overseas property or emigrating. You don’t want your dream property to go over budget due to an unfortunate currency swing.
Shop around
Need to transfer money abroad? Check out Johnmasonfx.com today.
