From 1993 to 2012, the foreign number of citizens in the United Kingdom increased from 2 million to 4.9 million. According to the Office of National Statistics, 517 000 people emigrated to the United Kingdom in the year ending June 2012. The year ending 2013 saw a slight decrease to 503 000.
A large of portion of these immigrants have moved to the UK for work related reasons. Many send money back to their families in their home countries. China is one of the biggest suppliers of new immigrants followed by India, Poland, the United States and Australia. The increased volume of foreign workers has increased the need for money transfer services.
There are two main options to transfer money from the UK. The first would be to use a local bank in the UK, such as Barclays or HSBC, to transfer the money for you; the second would be to use a money transfer operator such as Exchange4free. There are various positives and negatives to using the different options, which will be outlined below.
Using your local bank is one of the easiest and simplest options. You already have an account setup with them, which will save you admin registering an account with another service. Some of the downsides are that the banks often give unfavourable foreign exchange rates on your transfer. They can also charge international transfer or swift fees up to £50. On top of that your beneficiary may have to pay a fee a ‘receiving fee’ to receive the overseas funds.
As an alternative to your bank, you can use a money transfer company or money transfer operator (MTO) to assist you with making your international money transfer. There are many companies that offer essentially the same service. They will send your money from country A to country B. The main differences which you need to be aware of and compare are the exchange rate margins/spread that they charge and the fees involved. The time it takes to make the transfer can also be a determining factor if your beneficiary needs to receive the funds urgently.
An MTO will quote you an exchange rate, either online or on the phone, to do your money transfer. The rate you receive will depend upon the amount you are sending and where the market is at that current point in time. For more information on money transfer exchange rates CLICK HERE.
Exchange rate quotes can vary between MTO's, so it's good to get a few comparative quotes from the different companies website before you transfer your money. Exchange4free offer very competitive exchange rates and also guarantee to beat any genuine quote from competitors.
Another factor to be aware of when choosing a MTO is what fees they charge to use their services. Fees can vary depending on the amount and the destination country to which the money is being sent. Same day transfer services for being needing urgent delivery will tend to have higher transfer costs.
The great benefit or using Exchange4free's services is that we don't charge any transfer fees (sending or receiving). We don't charge any international transfer fees and your beneficiary will not be charged any receiving fees to receive the funds.
Making your Decision
When considering an international money transfer service, you should consider what exchange rate quotes you'll be getting on your transfer as well as what fees are involved.
Exchange4free endeavours to offer our clients the cheapest money transfer and remittance service in the market by charging no fees to transfer money from the uk and quoting our clients the best exchange rates in the market.