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Haitham Sadek 0 Comments


International money transfer is a necessity to many people who live or invest in a foreign country. Paying your mortgage, sending money to family back home, paying your children’s tuition fees and investing in foreign stock markets are some of the reasons to transfer money internationally. Many people use the easy way of transferring money via their banks unaware that this may cost extra thousands vs. other secure ways that will be explained in this report. Banks do not only charge significant fees but also make huge profit from the foreign exchange rate.

Real Life Examples

Australian citizens living in the Middle East bought an investment property in the UK. To pay their initial deposit, they wanted to exchange 100,000 Australian Dollars (AUD) to British Pounds (GBP) to transfer to the UK. The Australian Bank’s online service offered an exchange rate of AUD= 0.54 GBP. This means that their 100,000 AUD will exchange to 54,000 GBP. Alternatively, after reading this report, they used www.OFX.Com with a rate of AUD= 0.57 GBP. With this rate, they could transfer 57,000 GBP to UK. This is an amazing 3,000 GBP (or 5.5%) in one transaction! You can also save THOUSANDS by not using your banks. See next section for details.    


How to Save Thousands Using Foreign Exchange Brokers  

If you want to send money overseas, a foreign exchange broker could be a good option. They often charge no fees and usually offer a better exchange rate than a high street bank. So, how do they work?

Set up an account: Setup an account will take few minutes to register by entering your personal details. To activate your account, scanning a proof of identity (Passport, National ID or driving license) and a proof of home address (Bank statement or utility bill) will be needed.  Once your account is set up, you can start transferring money and usually a dealer will contact you to discuss the transfer. If you are happy with the costs and exchange rate, you can book the transaction, give details of the recipient’s account and pay the agreed amount, typically by an electronic transfer from your home bank account.

Once it has received the funds, the broker will send the currency electronically to your beneficiary. The whole process shouldn’t take more than one or two days depending on the currency – with popular currencies such as Euros or US dollars, the time taken should be shorter than for less familiar ones.

Types of transfer: There are normally three types of transfer, and you can select the one that best suits your needs and time scale. A transfer at the current exchange rate, sometimes called a spot deal, is the quickest and most straightforward transfer as you simply send the funds immediately at the present rate of exchange. If you do not need to send the funds straightaway, you could consider a ‘forward’ contract, which allows you to lock into today’s rate but effects the transfer of money at a given date in the future. A forward contract can be appealing if you don’t want to worry about exchange rate movements, or if you expect the rate to get worse. Remember, however, that currencies can be volatile and the rate could move against you. Foreign currency brokers can also arrange regular payments to a recipient overseas, perhaps if you pay a foreign mortgage or school fees. There are also brokers that allow cash transfer and credit card pickup.

Consumer protection: Security is paramount if you are sending money overseas, so you should always check that your broker is authorized or regulated.  

Examples of foreign exchange brokers

  1. For over a decade , I used OFX to transfer money across many countriesprimarily for my properties and stocks investments. I saved thousands vs. using my banks. OFX offers a better alternative to banks by helping their clients lower the costs of international payments. They provide tailored solutions that deliver better exchange rates and manage the risk of volatility in currency markets. The available services are International transfers in over 50 currencies, a secure online platform, personal 24/7 dealing access, zero transaction fees and same day transfers. OFX is publicly listed on the Australian Stock Exchange ASX:OFX with over $100B client transfers to date and approx. 65,000 website visits per day. It has a global presence with offices in London, Sydney, Toronto, San Francisco, Auckland, and Hong Kong. To use OFX services , please register by clicking here
  2. launched in January 2011 by two Estonians. Its headquarters is in London and has eight offices around the world, including New York, Sydney and Singapore. It has over 1 million customers, sending more than £500m, using the platform every month. Furthermore, it supports more than 645 currency “routes” across the world.
  3. is an online service that allows people to send money to friends and family living abroad, through a computer or smartphone. Money can be received as a bank deposit, cash pick-up, Mobile Money, or mobile airtime top-up. Its service is available to senders in 50 countries and offers transfers to more than 120 destinations globally.
  4. a New York based company founded in 1851 with 500,000+ agents and locations across the world. It moves more than 150B$ in 130 currencies reaching more than 1B bank accounts per year. A great option for sending cash or a credit card top up.
  5. founded in 1980. This 35-year plus young financial institution has today grown into one of the leading global remittances, foreign exchange and payment solution brands in the world. Headquartered in Abu Dhabi, the brand has spread its footprint across 31 countries in 5 continents with close to 800 branches. It has 15 million customers worldwide and a strong correspondent banking relationship with over 140 global banks.

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