Purchasing a large overseas asset can be a great luxury or a wise investment. But purchasing an item of significant cost in a foreign country comes with its own set of complexities.
Whether you are thinking of owning a home abroad or looking to diversify your investment portfolio by buying foreign shares you will need to transfer a large sum of money to complete the purchase. Using a dedicated online money transfer company can help you save a significant amount on your currency transfer costs versus the bank. FlashFX provides competitive exchange rates for 17 currencies and charges zero fees on all transactions.
Different international money transfer companies will have varying areas of expertise and will offer a range of exchange rates and fees. When it comes to transferring big amounts, small differences in exchange rates and fees could mean the difference of thousands of dollars. Speciality foreign exchange providers, like FlashFX, generally offer much better rates, superior customer service and speedier transfer times versus the bank.
The exchange rate has the single biggest effect on the value of your international money transfers. A difference of just a few percentage points can add significant costs on to your transaction. Always go with a foreign exchange provider who shows you the conversion rate upfront. Banks typically charge customers up to 5.0% on the value of the exchange rate. At FlashFX, we charge an affordable 1.5% on top of the market exchange rate.
Fees come in all shapes and sizes with international money transfers. When transferring larger sums, beware of companies that levy percentage-based fees since these will only make the total cost of your transfer more expensive. FlashFX has zero transaction fees, helping you save on high-value international money transfers.
Don’t forget to factor in any tax or legal fees involved with your international purchase. Make sure you’re up-to-speed on the tax laws in that country and how they will impact your purchase. Visit the ATO’s website or consult an international tax accountant with any questions.
One of the biggest factors affecting the viability of your investment will be the exchange rate. Stocks or property priced in foreign currency can suddenly become cheap due to fluctuations in the currency.
As you do your research into where or what you’d like to invest in make sure to consider all the factors that could influence the exchange rate including the political environment, economic policies and interest rate trajectories. Currencies are constantly fluctuating and can sometimes change quite dramatically in a short amount of time. For example, on the day of Brexit the British Pound lost 10.0% of its value in a couple of hours.
It’s always helpful to compare the current exchange rate versus its historical average. If you are looking for a better rate to transfer, consider signing up for FlashFX’s rate alert notifications. We’ll shoot you an email when the exchange rate has reached your desired level.