The Best Ways to Send Money Abroad From the UK
Individuals and businesses alike are transferring money in different currencies to foreign bank accounts at an increasing rate. Global businesses, the rise of eCommerce, and the interconnectedness of the modern economy have made this a great convenience for many, and a necessity for some.
However, not all are considered equal. From cost to convenience, here are a range of options you have when transferring money to a foreign bank account from the UK:
Option #1: Digital Business Accounts
A relatively new player in the industry, digital business accounts are a type of financial platform designed specifically for businesses trying to find success in the global market. Often, businesses are stifled by high currency exchange rates that make expansion into new, overseas markets difficult and unrealistic. With a digital business account, you can expect up to 8x lower rates for FX transactions compared to traditional banks, instantaneous payments, and so much more.
At Currenxie, we offer businesses the chance to seamlessly pay and get paid in more than 18 currencies in over 100 countries around the world. Having all your financial transfers consolidated into one secure and reliable platform allows companies to focus on growing their business rather than searching for the lowest foreign exchange rates.
For eCommerce companies and other businesses looking to trade in an international market, digital business accounts are an indispensable tool as they help make payments and transferring money to foreign bank accounts seamless, cost-effective, and simple.
Option #2: Your Local Bank
Convenience and security are the upsides of using your local bank to make an international money transfer — especially if it’s where your money is stored. All you need to do is log onto your bank’s eBanking service or visit your local branch to make the transfer. The money will then be deposited directly into the recipient’s account. Additionally, any money in your local bank account will be protected under the Financial Services Compensation Scheme (FSCS).
The downside to this method of sending money abroad is that traditional banks can have much higher transfer costs, depending on how much cash you take out of the UK. This is especially true if you aren’t making large transfers (which will undoubtedly get you better rates), so expect your local bank in the UK to take around 3-4% of your transfer amount. Note that this cost is sometimes hidden in the exchange rate itself.
Additionally, an international payment sent from a local bank will be a SWIFT telegraphic transfer (TT) that takes 2-3 business days, on average, to be processed. This is compared to a borderless payment with a digital business account that usually occurs within the same day.
What details you need to transfer money will also depend on your chosen bank. Some banks may require additional information about the purpose of the transfer, while others may not. Therefore, when transferring through the bank, it is important to contact them prior to sending money if you are unsure of the requirements. Bank limits and stipulations will also affect how much money you can take out of the UK.
Option #3: Money Transfer Companies
Money transfer firms also offer a fast and convenient way of transferring money to foreign bank accounts. These services are usually the quickest option but are not covered by the FSCS — so, if the money transfer company goes bankrupt, your money may not be protected.
Some companies like Western Union have a global presence — as well as High Street branches — and make the process of transferring money overseas straightforward. Fees charged by these companies will very much depend on the one you use. Make sure you understand exactly how much money you can take out of the UK and how much it will cost before you make a transfer.
Option #4: FX brokers
Foreign exchange brokers (FX brokers) specialise in transferring money to foreign bank accounts worldwide and often won’t charge any fees if you transfer enough money. This makes them the desired choice for businesses or individuals that don’t deal in smaller and cheaper product transactions, but who rather make larger transfers between currencies if, for example, they are repatriating profits or investing in currencies.
Weigh Up Your Options
Whether you’re looking for the most cost-effective, secure, and convenient way of transferring money, there are plenty of options available in the UK. Ranging from your local bank to FX brokers and even digital banking solutions, each option has its pros and cons — so it’s about finding the one that meets all your needs.
If you’re interested in transferring money to a foreign bank account from the UK at the best possible rate, but don’t know where to start, be sure to reach out to us. Our team will gladly help kickstart your foreign exchange journey.