Money transfer FAQ – Answer
for your FX transfer Question
Do you have questions? Need some answers? No problem! It’s perfectly normal to have questions and that’s exactly why we created this FAQ page.
If you somehow don’t find the answer to your question here, be sure to read the FAQ of the company that you want to work with or contact them directly.
What is a FX (Foreign Exchange) Transfer?
Whenever you transfer money from one country to another, all banks have some “hidden” transfer fees called the foreign exchange rate. The exchange of funds from one currency to another is performed at a pre-agreed rate, but each bank can take additional fees which are considered legal. In order to avoid these rates, the FX transfer companies are enabling you to quickly transfer money from one country to another, without having to pay any hidden fees.
What is the Difference Between Currency Transfer Companies and Mainstream Banks?
While banks have licenses and can pay interest on deposits, plus offer a wide range of financial services, currency transfer companies are simply payment vendors that distribute the money they receive from you using a strict set of rules.
Banks are the default option when it comes to transferring money abroad, due to their all-in-one service options. However, the rates of these transfers are more than often exorbitant and can exceed 6% of the total amount transferred. It’s always a smart thing to perform some extra research in order to find a better alternative to banks, which usually comes in the forms of FX transfer companies.
How do FX Transfer Companies Work?
These services that come as a great alternative to banks work seamlessly, following a proven step-by-step process. Here’s what you need to do in order to capitalize on an FX transfer company:
Step 1: Do your research and select the right FX company for your needs.
Step 2: Complete the application form using your name, address and id check. Some FX companies reserve their right to conduct credit checks in order to stay protected against anti-money laundering.
Step 3: Select the amount of money you wish to transfer, either via a mobile app or desktop.
How long does an international money transfer take?
As a rule of thumb, FX companies that offer services to Aussies work extremely quickly. In this modern age of technological advancements, consumers are used to getting everything at lightning speed. Unfortunately, FX companies fall back in terms of speed when compared to banks.
It takes around 2 working days for the money to arrive at any other side of the globe. For priority currencies such as USD, Euro or GBP, it takes less than 2 days, while for lesser used currencies such as RON, HUN or MOD, it may take up to 4 days.
What do I actually Need to Make a Transfer?
In order to make an overseas payment, you’ll generally need the recipient details, which include name, bank, country, IBAN, and BIC.
Once you have selected the payment details, the FX transfer company you’ve chosen will provide you with all the steps to follow. They will process the payment and will send you the money within 2-3 business days.
Sometimes it takes longer for money to arrive, but it’s all dependent on the currency pair. For instance, an exchange from US dollars to British pounds is much quicker than an exchange from Euros to Chinese Yuan.
Do FX companies accept international clients?
Yes; however, for a proper FX company choice, it is recommended to check the list of accepted countries.
Every foreign exchange company accepts clients from Australia. Most of them accept also clients who are living outside Australia but have Australian citizenship.
When it comes to the largest companies, the accepted international clients should come from a pretty large pool of countries.
How Safe is my Money? Are companies like World First, Wise and Moneycorp secure?
In Australia, all of these FX companies have to be registered with the CFR (Council of Financial Regulators). Depending on their country of origin, these companies are also regulated in their own countries.
It becomes essential to ensure that the FX company you want to use is regulated in its country of origin. Additionally, you want to make sure that they have plenty of positive reviews and provide you with comprehensive coverage in case something unexpected happens.
Which are the recommended FX companies to use?
The same companies that we have reviewed and featured on our homepage:
#1
Best Money Transfer Company in Australia
- Industry Veteran and Leader
- 9/10 Customers Worldwide are Happy with the Service
- Easy System to Sign Up and Get Quoted Online
- Fully Functional Online Trading and Mobile App
Established
1979
Available
Worldwide
Currencies
120
Min transfer
£/€/$ 50
Trading via
Offices
+ 8 more
#2
Best Online Payment Platform
- Global Approach with 30+ Offices Worldwide
- 150,000+ Clients
- Zero Fees from Everywhere
- Extremely Easy Sign Up from Australia
Established
1996
Available
Worldwide
Currencies
39
Min transfer
£/€/$ 100
Trading via
Offices
+ 6 more
#3
For Relocation Purposes
- More than 100 Years of FX Experience in Trading Staff
- Hassle-Free Transfer Process
- No Fees Worldwide
- Fast and Easiest Website
Established
2004
Available
Worldwide
Currencies
59
Min transfer
£/€/$ 100
Trading via
Offices
#4
Largest FX Firm in Australia
- Publicly Traded Firm in ASX
- 94% Customer Satisfaction
- Australian Born and Bred
- 24/7 Customer Support
Established
1998
Available
Worldwide
Currencies
55
Min transfer
£/€/$ 100
Trading via
Offices
+ 3 more
#5
Incredible Rates for Currency Transfers from Australia
- Very High Positive Client Feedback
- Fixed Margins- Auto Applied, not Based on Negotiation
- Large and Trusted
- Unavailable in the USA, and in Quebec
Established
2004
Available
Exept USA
Currencies
130
Min transfer
£/€/$ 1000
Trading via
Offices
+ 4 more
What About the Fees and Exchange Rates?
With FX companies, you’ll be able to save up to 50% of your regular banking fees. While most banks operate on very high margins, Australians can evade all those high commissions and hidden fees by going with a fully-transparent FX company.
Of course, the fact that FX companies are normally cheaper involve some drawbacks. It usually takes longer for the money to arrive at the destination, plus the setup process is more complex.
If you’re spending around $400, you’ll be able to save around 4% of the total sum, or around $20. However, if you have a company, and you conduct business of over $500,000 a year, you’ll be able to save a whopping $20.000.
How to read foreign exchange rates?
Knowing the meaning of each term and concept is crucial, especially when making foreign exchange. Once you employ an action, it’s nearly impossible to undo it without a cost. Whenever you are reading the foreign exchange rates, remember that:
Currency Pair
includes the base currency on the one hand, and the quoted currency on the other hand. To make the difference between the two, consider that the base currency is fixed at one unit. In contrast, the quoted currency is the equivalent amount of one base unit in foreign currency.
Direct Currency Quote
shows the amount required to be paid in domestic currency for one unit of foreign currency. With it, you can see how many AUD you have to pay to exchange a certain amount in GBP.
Indirect Currency Quote
shows the amount required to be paid in foreign currency for one unit of domestic currency. With it, you can see how many GBP you will receive when you exchange a certain amount of AUD.
Cross Currency
stands for the difference between two foreign currencies, with no need of a domestic currency. When you read it, consider the foreign currency from the left as the base and the value as the other foreign currency’s amount required for one unit base.
What is a Forward Contract?
In the financial world, and that includes money transfers with FX companies, a forward contract is a binding agreement between two parties, which implies the exchange of a certain sum of money in one currency for another currency, at a fixed rate.
With a forward contract, you gain the peace of mind that you’ll get a specific exchange rate that you’ve already agreed upon. Importers and exporters make the most of this financial tool to protect themselves from currency fluctuations.
What is a Limit Order?
A limit order, also known as a Foreign Exchange limit order, will enable you to target a higher rate and automate trades. Both businesses and individuals looking to save money and capitalize on the best rates out there can use the limit order tool to get better rates.
This is a hedging tool that allows you to buy currency at the best rate possible.
What is spot rate in foreign exchange?
When you are looking to exchange rates in FX companies, you are actually starring at the spot rate.
By definition, a spot rate exchange stands for the ongoing price quoted to exchange two currencies. It is usually decided by forex markets; however, various countries can influence rates using multiple mechanisms.
The spot exchange rate changes multiple times per day, upon the offer and request levels on the global foreign exchange market.
What bank details are needed to transfer money?
Each money transfer from Australia to New Zealand is linked to a bank account. In order to fulfill a proper transaction from the first try, make sure to have the following details ready:
- The name of the beneficiary;
- The account number of the beneficiary;
- The SWIFT CODE or BSB/Routing number of the beneficiary;
- The name of the bank linked with the account number;
- The reason for making the transfer.
How to transfer large amounts of money?
Transferring large amounts of money from Australia to New Zealand through a bank is an expensive decision. A cheaper yet secure one is through a FX company.
Once you have the money ready for transfer and the proper FX company chosen, you can send your funds to the provider and wait for your money to be converted into the new currency. Right after the provider has your money in the desired foreign currency, the sum is transferred to the overseas bank account you specified.
Why does it take so long to transfer money?
The required time to receive money from Australia to New Zealand might vary. However, because they happen to be in close proximity, the minimum transfer speed is two days. It might happen for the beneficiary to receive the money within the same day.
The bank or FX company you decide to work with has a strong impact towards the waiting time. While the FX companies rarely exceed two days, banks require in average 3 days.
What happens if I transfer money to the wrong account number?
Whenever you are sending money online, it is easy to misspell the correct account details. If you send money to a wrong account number through a money transfer provider that is part of the ePayments Code, here is what you need to do:
- Immediately notify your provider of what happened within 10 days from the incident. According to the Australian Securities and Investments Commission, you should be able to access to your money soon;
- After 7 months it gets tougher; you can receive the money only if the receiver gives its approval to return the funds.
If you chose a FX company to make the money transfer, the company will not be liable to you should you inserted the wrong account details for the beneficiary. However, the FX company will do its best to trace the money and work with the local law to see what it can be done.
Only if the FX company made a wrong transfer to a different account will it refund the total amount to you.
How to avoid recipient bank fees on international transfers?
Each money transfer made through a bank is prone to charge the recipient with an additional fee for the foreign payment.
FX companies usually have a specific global network with local bank accounts. These ones are used to move money in a cheaper way, at least to reduce the high fee imposed by the recipient bank on international transfers.
Avoiding all bank fees when the recipient receives a foreign payment is almost impossible.
What are some of the advantages of foreign money transfer services?
Foreign money transfer services are fast, convenient and easy – not to mention advantageous. Instead of exchanging money at unfavorable rates applied at most banks, you can offer value to your money.
In addition, such transfer services are safe.Due to the regulations for international transfers, you are assured that the money will enter the beneficiary’s account should all details be added correctly.
What are some of the disadvantages of foreign money transfer services?
Every foreign money transfer service comes with a fee. It can be applied either as a margin to the exchange rate or as a visual fee for transferring money. But compared to your traditional bank, you will always end up paying a lot less.