The money transfer industry is steadily growing at about 10-12% per year. This is primarily due to increased migration, globalization and new and improved technologies.
One of the latest additions to the money transfer market is worldwide money transfer via mobile phones. This segment of the industry alone is set to become a $ 8 billion revenue opportunity for mobile phone operators from around 2012. This indicates a huge growth from 2006 when the turnover was $ 10 million.
With such a large market there are of course many service providers and new money transfer companies entering the market all the time. Here are ten tips to help make sure that you are getting the best deal possible on your money transfer:
1) Do not overlook hidden exchange rate costs! Some companies do not make it absolutely clear just exactly how much the exchange rate is that they are giving you. Some companies will give you a poor exchange rate after enticing you with slogans saying they have no money transfer fees but the they hit you with a hefty exchange rate possibly leaving you worried off.
2) Check out the details of the transfer. I mean really read the small print. It maybe that you will be more when sending to and from different locations which again can be different from the advertised costs. The speed of the transaction may also be affected by your location.
3) Plan ahead. If you are able to plan ahead and the need for the money is not urgent you may wish to perform a delayed transaction. Basically you arrange for the transfer to take 2-4 days rather than to be immediate. This will mean the transfer costs will be lower, several leading companies offer this service. The fee could be around 25% cheaper.
4) Ask the following question to your potential money transfer company: The best thing to do is to ask the simple question:
"Altogether how many Pounds / Dollars / Euro / Yen will I receive for my Dollars / Euros / Yen / Pounds?" This may well be the simplest and easiest way to compare money transfer companies.
5) For large money transfers consider wiring the money with a bank to bank transfer. The reason for this is that this is quite possibly the safest way to transfer money. Every account holder will have had to have had their identification checked and verified and also the banks use a very secure method to transfer the money. The information sent is highly encrypted to ensure security and difficult to intercept too.
6) With different companies entering an already fragmented market when deciding which company to use for your security consider answering the following questions before choosing a money transfer agent:
How is the fee worked out and what exactly will it be? What is the exchange rate that is being used? How can the intended recipient physically get their hands on the money? When exactly will they be able to collect the money? Is their a choice of money collection points? are there additional fees for using credit cards?
7) If possible do not use a credit card when transferring money. It is highly likely that you will have to pay a cash advance fee to your credit card company adding to the overall cost.
8) One of the cheapest ways to transfer money would be to simply open a joint account and let the intended recipient take the card away with them. First you would need to find a credit card company offering reasonable withdrawal fees for overseas transactions. These can be found and secondly you would have to of course only do this with a person that you completely trust. The bill would simply have to paid in the country of origin of the card each month as normal.
9) Of course never fail to shop around! Many new companies are joining this expanding market everyday, many of them willing to undercut rivals for your business. This provides you with plenty of scope for finding a low money transfer fee.
10) Cover yourself. Make sure you keep receipts, money transfer reference numbers and any other proof that you are given especially with new start = up companies where there is an increased possibility of things not quite going according to plan. This gives you the proof necessary in the illegally event that an inconvenience dispute should arise.
So, there you have it, ten tips for making money transfers at a lower price and safely. As ever the lowest priced company does not always provide the best service so bear that in mind while searching around for a company to transfer your money. There are plenty to choose from so take your time and consider the above tips.