If you know that soon you’ll be receiving a large sum of money from overseas, whether for your business or yourself, then it’s time to start evaluating your options. Even when you aren’t making the payment yourself, it’s important to remember you can still use a highly-rated money transfer company to save money when receiving large sums of money internationally. Here on Send Money Australia, we have reviewed foreign exchange companies who are experts in helping people who are both making international payments and receiving large sums of money from abroad. All with no fees, great FX rates, and an easy transfer process.
So long as the source of money is legitimate and one of the bank accounts involved is in your name, then anyone is able to use a specialist money transfer company to save significant sums in the process. Just a few examples could include:
The process is really simple, but it’s best to get things prepared ahead of when you are set to receive money from overseas to avoid any late snags in the transfer process.
The first step is to establish your account with a money transfer company. All of the providers we recommend accept clients from Australia, as well as many other major countries around the world. They are registered with the AFS and regulated by AUSTRAC – the Australian Transaction Reports and Analysis Centre. There will be various due diligence checks, but providing you’re on hand to supply the needed identification and verification your account should be set up same-day.
Once your account is set up you should inform the money transfer firm of the account details that you’re receiving large sum of money from overseas. Depending on why it is you are receiving the money, this could be a solicitor, financial adviser, estate agent, or any company/person providing it is a legitimate transaction. As the funds are not coming from an account in your name, the money transfer firm will just need to register the account as an approved third-party source of funds on your account, and you’ll need to ensure the funds are being sent to an account in your name.
Once this is done you can instruct the remitter to send the money you are due to your account with the money transfer provider. If, for example, you are receiving large amounts of money from overseas (UK to Australia), then the money transfer firms we have listed, all have a local GBP account in the UK and local AUD account in Australia. Thus you can provide the remitter with a local account in the currency they require, the FX firm will conduct the foreign exchange from GBP to AUD, then pay the AUD to you locally in Australia. Saving on intermediary bank fees and ensuring a smooth transfer process.
One thing to be aware of, is that the remitter will want to ensure the funds are being sent to an account in your name, so if you use a money transfer provider, you can work with them to show you have an account under your name with the money transfer provider.
With a money transfer firm, if you take our example of receiving large amounts of money from overseas (UK to Australia) then you can expect to pay a maximum of 1-2% in the FX spread. Some companies like WorldFirst even advertise a pricing structure between 0.15% – 0.5%, depending on how much you are receiving/sending abroad. Thus a £100,000 transfer from the UK to Australia would cost you a maximum of £500. Going down the bank route would simply see GBP trying to credit an AUD account, not only would this cause a delay in receiving funds but the bank could easily apply a spread of up to 8% for conducting the FX, or £8,000 for the £100,000 you are receiving.
In scenarios where you’re receiving large amounts of money from abroad – tens or hundreds of thousands of Aussie dollars (or any other currency), you can negotiate the pricing. Having conducted market-wide research we believe WorldFirst offers the lowest spreads to be automatically applied to your account (between 0.15% – 0.5%). However, if you’re receiving a significant sum, you could get an even better deal if you negotiate with some of the other top-rated money transfer companies.
It can be worth comparing several companies (we recommend you try 3 of the companies featured above). Regardless of the money transfer company you choose, their rates should represent savings of at least 50% when compared to banks.
It’s worth noting money transfer firms will most likely conduct your onboarding checks to your current address. If you’re based in the USA and receiving large sums of money internationally from the USA to Australia then the Australian founded OFX (listed on the Sydney Stock Exchange) is not only one of the most respected money transfer firms but holds individual US state licenses to offer FX services throughout America.
If you’re receiving large sums of money from the UK to Australia then all of the brokers we have highlighted on Send Money Australia can provide exceptional service. Perhaps you might prefer TorFX who has an office in Australia with local account managers.
If you have read through our guide on receiving large sums of money from abroad you will have realised that questions you may have had in mind such as “what’s the best process for receiving large sums of money internationally”, “how can I do this cheaper”, and “who is the best company to use” can all be easily addressed. Bank charges to receive funds from abroad are significant. When an overseas currency tries to credit your domestic bank account, banks charge even more in FX spreads than they do on outbound payments. The specialist provider will take care of your needs and ensure no nasty surprises – if you’re a business they will guide you on the best way to receive an international payment from abroad, and if you’re an individual they will show you how to receive money to your bank account in your own currency regardless of the currency the transfer was originated in.