No matter how much we earn, we’d all like to make our wages stretch a little further.
If you’re living abroad but still having wages paid into your UK bank account taking the time to look into your options when it comes to foreign exchange could really pay off.
Here are our top tips for getting the best return when transferring wages overseas.
Think about fees
If you currently use your bank to transfer your wages from your UK bank account to your new home you may find that you’re being charged anything from £10 to £40 every time you move your money. Over the course of the year this means you’d be paying out between £120 and £480 in transfer fees – a big amount of money to lose considering there are ways of transferring your wages without paying any fees at all.
Leading currency brokers will conduct your regular and one-off currency transfers on a totally fee-free basis, so you won’t see your wage packet dented. As brokers are foreign exchange specialists they can also offer a number of other services which can help you get more from your money, like market monitoring, which we’ll cover in more detail below.
Move money at a competitive rate
When conducting an international money transfer, either large or small, securing a competitive exchange rate can make a big difference. A currency broker could offer you an exchange rate which undercuts the bank by as much as 90% – potentially saving you hundreds over the course of the year on your wage transfers.
Achieving a more competitive exchange rate can make an even bigger difference on larger transfers, with the variation of just a couple of cents per Pound (or pence per Euros) potentially leaving you thousands better or worse off. While currency brokers will offer you a more competitive exchange rate than banks, moving your money at the right time is also important. But how do you know when the market’s moved in your favour or shifted against you?
That’s where the market monitoring service offered by some currency brokers can really come in handy. As mentioned above, currency brokers will track the latest currency movements and exchange rate trends on your behalf. By keeping you informed of the latest developments they give you all the information you need to pick the best time to move your money abroad.
Make your transfers hassle-free
Living and working abroad can be really exciting, but living in a foreign nation comes with a lot more headaches than holidaying there. With bills to pay, the kids to organise, work to stay on top of and a different culture to acclimatise to, you don’t want managing your foreign currency transfers to cause you even more stress.
Currency brokers can help make moving your wages overseas and organising any other recurrent or one-off transfers simple, hassle-free and cost-effective. By setting up a Regular Overseas Payments account you can relax knowing that monthly or quarterly currency payments will be carried out automatically on a pre-set date. Once your account is set up you don’t need to do a thing – transfers will occur on time, at a competitive rate of exchange and on a fee-free basis. It’s easy to modify details if you need to and you can even fix a rate ahead of time so you know how much you’re going to get each month and can budget effectively.
Dom is a journalist living in Paris. His employers are a UK-based publication and they pay his wages into his British bank account.
Initially, Dom was using his bank to convert his wages to Euros each month and was getting charged £30 for every payment. After talking to other expats he decided to make an enquiry with a reputable foreign currency broker and found that they could set him up a Regular Overseas Payments account and move his money fee-free. Then Dom compared the exchange rates offered by both his bank and the currency broker and realised he would be seeing additional savings.
Dom gets paid £1750 per month. At the GBP/EUR rate of 1.3677 offered by his bank Dom’s wages would be worth €2393.47. However, the broker’s rate of 1.4100 would see him achieve €2467.50. If Dom saw similar savings each month he’d be over €880 better off by the end of the year even without taking into account transfer fees.
If you’re living abroad, having a bit of extra money at your disposal can help you get the most out of your time overseas so it’s well worth looking into how best to manage your foreign currency transfers.
Find out more www.torfx.com, Freephone: 0800 612 9625 International Calls: +44 (0)1736 335270
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