When you think of dealing with money out of the country, whether to share with family overseas or travel with, it can often become confusing and complex. There are a number of transfer fees that will get tacked on once your money crosses borders, and exchange rates can leave you with a net loss. And if the expense and difficulty wasn’t enough, the wait time for transfers to be completed can easily be longer than anticipated. If you’re looking for an easier alternative than to deal with banks, then FX companies is just what you’re looking for.
FX Companies: What You Need to Know
Otherwise known as foreign exchange companies, these alternatives to traditional banks can help save you money with out of country transfers, whether for business or personal use. It works by having a broker controlling the entire transfer. They transfer funds to different accounts to minimize fees, then release them as they are needed. All of this takes very little time when compared to traditional banks, meaning hours rather than days. What’s even better is that communication is simple, and can easily be done online or even over fax.
In today’s world, banks normally control everything and make a large profit from their customers along the way. FX companies are looking to change this, not only by saving the customer money, but providing them with great customer service and a number of other benefits. Some of the top benefits that you won’t find with traditional banks include:
Most people are used to waiting days for their transfers to take place, but that isn’t the case with foreign exchange companies. By utilizing the internet, an incredible amount of time is saved. In fact, that transfer that once took 3-5 days could very well be done in 24 hours or less, which is something that anyone can appreciate. This shortened time period is why many prefer using this foreign exchange companies. You can send money to Spain or New Zealand with the same delivery time even though this countries are so far away from each other.
One thing that’s important to know is FX companies work with cash. This ensures they have a cash reserve that can be used for transfers in particular, speeding up the process for their customers. They utilize their already active bank accounts in different countries to move funds in a way that saves the customer money. For example, a traditional bank transfer could have a fee of around $25, but by using the services of an FX broker instead, the client could save up to 90% of that. For someone who moves money around a lot, this can mean a lot of savings all throughout the year.
FX brokers don’t charge nearly as much as banks do when it comes to exchange rates. For example, most people are left paying an increased margin of around 4% when they transfer money through a regular banking institution. FX brokers will generally settle for much less, even going as low as .5%. All of this is thanks to foreign exchange companies utilizing independent transfers rather than interacting and relying on banks to handle the funds.
With all of that information, it should be easy to see that FX companies make it much easier and less expensive for individuals and businesses to transfer and send money all over the world. Millions of people rely on this service regularly, and have come to trust them instead of traditional banking institutions. And even though these companies do make a profit off of exchange rates, they still save the client money by lowering their fees far below what a bank would offer.