TransferWise Research Reveals Australians Making Wrong Choices When It Comes To Transferring Money Overseas

Do banks provide international money transfer services free of charge?

Sadly, it’s not the case; banks are generally recognised as one of the most expensive options when it comes to moving money internationally; second only to using cash, according to the World Bank’s Data.

Mobile money apps are cheapest, certainly when it comes to sending smaller amounts, and that is because they use the latest disruptive technology, which is cheaper to use than the outdated systems the banks are using.

Money transfer is just not a core service for banks, and as a result, customers using them lose out on the exchange rate, on the fees, and even on the length of time to complete the transaction.

If further proof were needed, research completed by TransferWise in Australia provides it. TransferWise has calculated that, last year, Australians spent more than $3.9 billion on fees for sending money overseas. Of that figure, an incredible $3.1 billion was wasted on unnecessary fees, bank charges, and added expenses applied by banks or money transfer agencies.

That works out at approximately $167 dollars per Australian adult, or $513 per family. Pretty amazing, when you consider that these fees are almost entirely avoidable, say TransferWise, who completed their study in association with the firm Capital Economics.

TransferWise discovered that more than a million Australians still believed that banks did not charge for sending money abroad, and that 67% of the population still preferred to do their overseas transactions using their bank. One in five (18%) believe that banks charge a single, upfront fee, and half do not understand how banks use exchange rate margins to turn a further profit.

TransferWise is certainly one of the most competitive and best ways to send money abroad in terms of fees (around $2 dollars to send $200 or more overseas), exchange rates (you always get the rate you can find online, not one skewed in the transfer agencies favour), and speed (1-2 days is common).

If you want to be absolutely certain you are getting the best deal, of course the logical thing to do is compare all of the different providers, but who has time to do that?

Well, using The Money Cloud’s comparison engine, you can do it in seconds flat. Whether its TransferWise, Azimo, or a regulated broker for larger amounts, we have compiled a selection of the world’s best brokers, for your convenience.

Paying exorbitant fees for sending your own money to forign parts is completely out of sync with the way that modern banking should work. If we are doing our job properly, soon, it will genuinely become a thing of the past.

How To Compare The Best Money Transfer Services

The way that we send money abroad has changed almost beyond recognition recently, with the emergence of money transfer apps, instant transfer platforms, and even wearable technologies, that can arrange transfers in a matter of a few swipes.

Although this tech disruption has made the money transfer industry a much better market for consumers, it can still be confusing to navigate through all the noise, and find the best deals. Read more

MoneyCorp Completes Acquisition of First Rate FX To Tap Into Dubai Money Transfer Market

Only the United States ($56.3 billion), Saudi Arabia ($36.9bn) and Russia ($32.6bn) sends more money abroad than Dubai’s total of $19 billion, according to the World Bank, so it is no surprise that money transfer firms are scrambling to grab a slice of the action there.

MoneyCorp have stolen a march on their competitors by announcing last week the acquisition of First Rate FX, for an undisclosed fee. First Rate FX have an office in Dubai, which will be rebranded under the MoneyCorp name, and First Rate will also relocate from their Canary Wharf headquarters in London to MoneyCorp HQ in Victoria. Read more

Transferwise Launches 28 Currency Borderless Bank Account, But Faces Stiff Competition From Rivals

This content is sourced and brought to you by The Money Cloud – comparing the best rates for sending money overseas offered by hand-picked, regulated brokers and money transfer agencies.

TransferWise is targeting “expats, second homeowners, freelancers and more” with a new bank account that allows users to make transactions in 28 different currencies. Read more

Investigation Into Russian Interference In US Elections Switches To Money Transfers

This never-ending saga – one that has infuriated the POTUS, Donald Trump, who had received assurances this investigation would conclude before thanksgiving last year – rumbles on.

According to the New York Daily News, Special Counsel Robert Mueller has turned his attention to a number of suspicious financial transactions that took place at key moments before and after the US election of 2016. Read more