As any experienced individual would know, timing your money transfers is key to getting the most value for money.
If you’re a first-time transferor trying to figure out how to make the most cost-effective decisions, this process can be a little challenging. In this regard, knowing certain tips and tricks will help you ensure that you’re not caught on the bad end of fluctuating exchange rates. Apart from a number of services dedicated to this purpose, there are also individual practices that can help you achieve the same effect.
Our blog this week takes a look at these options, giving transferors all the knowledge they need to make the right choice, at the right time.
Staying up-to-date with the best exchange rates
If you have flexibility in deciding when you want to make your transfer, you can get the most value by waiting until the currency in question hits a favourable rate.
If you have the option of deciding when to send your money transfer, waiting for the best exchange rates is crucial to remain cost-effective.
A word to the wise though – if a particular currency exchange rate starts moving in the wrong direction, this might be the beginning of a longer-term trend. In this case, it’s likely that it might be some time (or never again), that you hit the rate most beneficial to you. In these instances, it’s wise to pick a date by which you will send your money, regardless of market conditions, to ensure that the ill-effects of a plunging exchange rate won’t hurt you or your wallet excessively.
There are numerous ways through which you can stay up-to-date with the best exchange rates, the most convenient being setting up email or text alerts from leading service providers.
Market watching services
Certain specialised transfer companies and other related service providers, take the responsibility of tracking trends in exchange rates to help you secure cost-effective money transfers.
Here, it is essential that you provide all necessary information including your transfer amount, the rate you’re expecting, and the currency you want to transfer to, among others. Keeping your instructions in mind, the company will then keep an eye on the best exchange rates, taking away the personal hassle of keeping up-to-date with everyday fluctuations and trying to make a decision thereafter.
Specialised services for regular money transfers
Certain transfer companies offer customers the option of fixing their exchange rates to suit their needs.
One such way is to fix the underlying currency value you transfer, meaning you fix the transaction cost no matter what the exchange rate. While this is beneficial in certain aspects, this could very well mean that the amount received by your recipient varies from time to time.
Another option is to fix the amount of foreign currency you receive, so you know precisely how much money is coming in, although the cost per transaction may well vary.
Certain companies even allow you to fix an exchange rate for up to two years, helping you keep costs consistent to a great extent. While this highly beneficial in most cases, it might just work against you especially if the currency from which you transfer performs well in the international market.
Timing your money transfers is crucial to ensure you remain cost-effective in your activities. The ultimate variability in these instances is exchange rates, which play a huge role in how much cost you incur. By being proactive and staying ahead, as a regular transferor, you can ensure that both you and your recipient make the most out of every transaction.