Daily FX Rates
There is no such thing as a fee-free rate if you are sending money abroad with your bank. Whether you are gifting, paying a supplier, or wiring emergency funds – just avoid the bank. If you want to prevent getting ripped off, read this:
Bank systems are slow
Have you ever heard of SWIFT? What makes the money move around the world is Society for Worldwide Interbank Financial Telecommunication.
However, how fast does SWIFT transfer money? If we were in 1973, we would get all excited about it, but now? Nah!
SWIFT transactions sometimes take up to four days, which is not something that would serve startups in 2020.
Bank transfers are expensive
Once more – get away from bank transfers (at least if you want to avoid hidden charges and costs). Here is the list of all fees you would have to pay:
1. The outgoing transfer fee
Banks somehow manage to seduce people the outgoing transfer fee is the only cost of a transaction. Don’t fall for that, as there is more.
2. The exchange rate markup
Starting off with hidden costs, the exchange rate markup is so well-masked barely any customer knows about it. Customers usually don’t know the difference between the real and the presented exchange rate, and the truth is – the difference goes somewhere between 10 and 15%.
3. Intermediary bank fees
Sometimes, a transfer goes from one bank to another, and so on. In this case, each intermediary bank will take a piece of the cake (fee), beating out a significant sum of money from the recipient’s pocket.
The worst thing about this type of fee is that you can’t know whether intermediary banks would get involved in the transfer before you send the money.
4. Incoming transfer fee
Last but not least, the incoming transfer fee refers to a fee the recipient’s bank charges at a point of delivering the money.
Just imagine sending a certain amount to a friend as a birthday gift. Then, the friend gets 30 to 40% less than the sum you sent. Such a horrible, embarrassing scenario, right?
What to do?
Newest technologies have a few options to choose from, such as this one:
1. Check the exchange rates before sending the money
You should be familiar with the mid-market exchange rate. Just Google currencies and there you go. It’s well-known providers always charge a small fee, but double-check whether the charge would exceed 5% - it is a red flag.
2. Find an online money transfer provider
Better rates, lower fees – it is possible with ACE-FX. We use technology to bring the costs down and pass on the savings to customers and hard working business owners.
3. Break up with your bank
Now that you know about bank monopoly, why would you ever want to transfer money abroad this way? Their era is over. The time has come to enjoy safer and faster transfers thanks to digital platforms.
Join us today!
