Banks, FX brokers or transfer firms - what is the best way to send money abroad?
If you wanted to make an international transfer right now, you would not even have to leave your room. In most firms, the whole process is done online, sometimes one do not even need an account. Before, the only option to send money abroad was to do that via bank. Now, it is just one of the alternatives.
Match your needs
Comfort of choosing money transfer service is now bigger than ever. Transfers are possible to most places on Earth, sometimes even in a few minutes. If you want to deposit money for transfer in cash or the receiver to get it in cash, it is also possible. And what is most important, no firm (except banks) will charge you 20 $ for a foreign transfer anymore.
What are the alternatives?
- most convenient way
- suitable for regular payments
- slow (time transfer: 4-6 business days)
- most secure and protected in case they go bust
Foreign exchange (FX) brokers
- adapted for large transfers
- competitive exchange rates
- low/no fees
- time transfer: 1-2 day
- money not protected
- for example: XTB, Saxo Bank, CMC Markets, IG, City Index
- wide range of services
- easy process, often with no account needed
- possibility of an instant transfer
- fee depending on the chosen service
- money not protected, risk of a scam
- for example: Xoom, Western Union, MoneyGram, OFX, TransferWise
Is sending money abroad safe?
That depends on the option you have chosen. Banks are safe and there is almost no risk of losing money here. They are even protected in case they go bankrupt.
On the other hand, if you have decided on the FX broker or the transfer firm, there is always a risk. These firms are not covered and the wide range of firms creates the chance of imposters in the business. So if you decide to go along with such firms, always read reviews, both positive and negative ones, to get a full picture of the firm.