If you are moving to Australia, or going there for a long trip, you will definitely need to send money there. The most popular option is bank wire though your bank. That would cost on average 25 Dollars, Pounds, or Euro per transfer (which is often a recurring, monthly fee if you transfer your salary or pension). In addition the exchange rates you will be provided with are far from the interbank rate.
The good news is that there are cheaper ways for International Wire Transfers To Australia.
How is a Foreign Exchange company any better than bank?
First off, most folks don’t care for banks too much. Without naming names, it has been proven over and over that the bank system is corrupt, and numerous times banks have been fined for Foreign Exchange rate manipulations.
Secondly, banks have hundreds of thousands, or millions, of clients. That means they will reserve their best and most readily available manpower to handle the big sharks, and won’t allow small-timers the 24/7 hands-on support they would often needs, especially when one speaks about large money transfers (such as overseas property purchase).
Thirdly, when you pay a fixed, high, fee, on each transfer, and pay as much as 2.5% of your transfer in exchange rate margins, you are losing a significant chunk of your money, and place it exactly where you don’t want it to be – in a possession of a bank.
What FX companies do differently?
Unlike banks, FX companies’ strongest point is transparency and dedicated dealers supporting clients 24/7, 365 days a year.
Though FX companies are safe, and have been around for a long time (MoneyCorp exists since the 1960’s), they can’t compete with banks in this category. When you speak of liquidity or professionalism, banks are also quite unbeaten.
To gain marketshare, and some competitive advantage, Foreign Exchange companies must bring something new to the table.
What they bring is a completely different approach that explains in detail the fees they take (usually a few Dollars for a small transfer, and no fees above $5,000 as a golden rule); the exchange rate they give (usually around the 1% mark or lower); and commit to a much quicker international transfer than banks would propose.
So why don’t more people use FX companies?
In the UK, where the commercial Foreign Exchange market is more developed than anywhere else, still 84% of the folks insist on using banks for international wires.
The reason is conception. People are used to something, and they are not going to switch to something newer just because it’s there. So it’s a slow process, but as more positive experiences are added into online review sites, you can see more and more people giving FX companies a try.