Bank Account
Currency can be wired safely from one bank account to another. You will need your bank and account information, and the bank and account information to which the money is to be transferred. You will also need the international bank code (SWIFT code) for both banks. A standard transfer will cost around £15, while an urgent transfer will cost as much as £35. Additionally, it can be difficult to check the current exchange rate for most banks online.
The tradeoff for the higher rate is security. Bank-to-bank currency transfers do not need a third party. As banks work with one another worldwide, you can transfer money through your bank in the UK to a bank anywhere in the world without restrictions.
Global Money Transfer Company
Several companies specialize in wiring international money transfers from one country to another. These companies have many offices worldwide, making them a convenient option to instantaneously transfer money. You must have cash to transfer and your recipient will receive cash. For transfers in excess of £600, you will need one form of identification. For transfers in excess of £2000, you will need two forms of identification. Such companies charge either a percentage of the amount of money being sent or a set fee, depending on the amount. This fee and any exchange rate are deducted from the amount transferred. In order for the recipient to receive a set amount of currency, the fees must be calculated into amount being sent. The advantage of this method is its convenience. Neither you nor your recipient need establish a bank account in order to send and receive money.
Online Currency Transfers
PayPal and Moneybookers.com are the two most well known online currency transfer companies. In order to transfer money, you and your recipient will each need an email address, which can be acquired for free at any number of email providers. To utilize Moneybookers.com, you and your recipient will each need to set up an account and a virtual wallet. Once these items are in place, you can transfer money from your bank account online through Moneybookers.com to your recipient’s email address. There is a nominal charge to send money, and a charge to retrieve it. Moneybookers.com is based in London and regulated by the Financial Services Authority. PayPal was originally created to enable payment for items purchased on eBay. It has since developed into a financial giant, able to handle international money transfers in sixteen different currencies. As with Moneybookers.com, you and the recipient will need to set up an account tied to a bank account. Fees vary depending on the amount of money transferred.
Foreign Exchange Broker
If you need to send an overseas money transfer in a large amount, consider enlisting the services of a foreign exchange broker. The exchange rate offered through a foreign exchange broker is more favorable to the sender than the rates offered through a bank. Look for a foreign exchange broker that offers a hedging service that is backed by the Financial Services Authority. Traditionally, businesses that regularly required money transfers had two options. They could perform the transfer at the current market rate, whatever than rate happened to be on the day of the transfer, or they could purchase a forward contract. A forward contract guarantees a set transfer rate for a set amount of time, making it easier to calculate actual transfer costs over the course of the contract. However, the contract does not allow for flexibility in the market. A hedging service enables a business to guarantee a worst scenario rate. This rate is always inferior to the contract rate. The difference between these two rates allows a business to benefit from marketing fluctuations.
