If you're buying a property overseas or making a large purchase of any kind in another country, you'll need to transfer a large sum of money from your home country to the location in question. Sounds daunting.
But fortunately, there are plenty of ways to do this, either with the help of your high street bank or a specialist currency broker. But there are lots of things to consider before you arrange your transfer. Here, we explain how to make a transfer, and why it's important to keep a close eye on exchange rates as well as any transfer fees. How do you transfer a large sum of money internationally?
Normally, when the payment is made from your account, you can fix the amount of money that is taken, which in turn means the amount received at the other end will depend on the exchange rate applicable at the time. Or you can fix the foreign currency amount to be received, so that the amount paid by you depends on the exchange rate. Remember too that the exchange rate you are offered when you make a large international money transfer can have a big impact on the amount that you transfer abroad.
When choosing which bank or currency broker you want to make the transfer on your behalf, always find out what the transfer fees are, as these can have a big impact on the amount you transfer. As a general rule, high street banks charge a hefty fee per transfer, while currency brokers' fees are typically lower, and even be FREE when moving large amounts. Our partner HiFX offer low cost and free transfers depending on the amount you transfer. With banks, there are other charges and costs to consider.
You will usually have to pay a fee to the bank which receives the funds – this is typically around 0.5% of the amount transferred but will depend on which bank you use. Remember too that the exchange rate you are offered when you make a large international money transfer can have a big impact on the amount that you transfer abroad. Some specialist currency brokers use special financial tools to protect against sudden exchange rate movements. These allow you to lock into favorable exchange rates before you make the transfer, a service offered by our partner transfer company.