Cheap and Safe Money Transfers for Investors- XE & Similar Solutions

XE Money Transfer

XE Money Transfer Solutions

A diverse investment portfolio is key to lowering your risks. And if your portfolio is spread worldwide, it’s even better. However, being an international investor is even more of a challenge because some risks are higher. In particular, you have to worry about foreign currency exchange rates a lot. The cost of money transfers is also a pressing issue. The good news is that solutions like XE are now helping everyone make cross-border money transfers cheap.

What is XE Money Transfer and Online Money Transfer Platforms?

The first outstanding thing about XE Money Transfer is that it belongs to Euronet Worldwide. It’s an international giant among money transfer providers. This alone is a good recommendation for the service like XE. That’s because such companies, essentially, act as third parties in the money transfer process. Therefore, every user faces a certain amount of risk.

However, with a company owned by a giant of this caliber, you have nothing to worry about. If you are working directly with XE, and not some impostor, your money is perfectly safe.

XE Money Transfer dates back to 1993, but in 2014 the company has grown as it merged with a UK-based FX broker HiFX. This deal increased the resources and reach of this money transfer platform further. Today, XE allows for international transfers to many destinations and works with 60 currencies. It has offices in the UK, the USA, Canada, Australia, and New Zealand.

As a money transfer service, it stands out in the industry due to its trustworthiness, worldwide coverage, and no fees policy. The foreign currency exchange rates offered by XE are some of the lowest. The service is regulated, which adds another layer of protection for customers.

XE is definitely one of the best examples of money transfer services today. However, it’s not the only one. These companies are growing in number as the demand for bank alternatives increases. The main advantage of money transfer platforms like this is the fact that they make transactions cheap. But you shouldn’t forget that not all of the companies are equally trustworthy.

As you’ll be entrusting your money to the company, you should always research it thoroughly before creating an account. In order to do this, you’ll need to turn to the best source of information, which is reviews. Study both independent professional reviews and customer opinions posted on platforms like Google Reviews and Yelp. This will help you understand the strength and weaknesses of every company. Make the final decision about these services based on that information instead of just looking at the offered fees and FX rates.

Online Money Transfer Companies Vs. Banks

Money transfer services similar to FX can reduce the costs of moving your funds across borders significantly because they aren’t really moving your money. Unlike banks, which follow very specific and complicated protocols for making any transactions, these services are very straightforward.

Usually, the process is to send the money to the company’s account in your country. As it’s an “internal” transaction, it might be completely free or cost a very small fee. Next, the company will send an equal amount to your recipient from its account in their country. This will be a local transaction as well, so it’s cheap.

Basically, the only cost that you need to worry about is the foreign currency exchange margin. XE, like some of the leading companies in this area, has a very low margin. It also depends on the size of the transfer. Therefore, the more money you send, the cheaper it will be. This is an important advantage for investors, who need to make regular large transfers to a variety of destinations.

Considering this process, as well as the fact that such money transfer services have low running costs, it’s no surprise they are cheap. All in all, this kind of transfer should cost you about 1% of the transfer amount. However, if you use bank wire transfers, it can go up above 5%. Depending on the destination, the cost might even exceed 10%.

The Importance of FX Margins for Investors

Every investor who chooses to put a part of their capital abroad should know that these deals are always riskier. It’s because there is always currency exchange involved. Depending on the situation, a change in FX rates can not only eat up all your revenue, but actually make you lose money.

That’s why FX margins are so important for investors. And it’s also why you should always look for money transfer services that offer lower margins. Banks always set them high because those margins are one of the main sources of income for them. However, money transfer companies like XE make money off the volume of transfers that they process. Therefore, it’s actually more beneficial for them to keep their margins low.

Moreover, the leaders among these companies also offer FX counseling and a variety of forex hedging tools. Using those allows you to reduce risks further because you can “fix” a favorable rate and stick with it.

Best Online Money Transfer Services, Beyond XE

XE is one of the best and biggest money transfer companies on the market. But if you are looking for an alternative to this service, you should also consider:

  • Currencies Direct
  • World First
  • Moneycorp
  • Global Reach
  • OFX
  • TransferWise

All of these services are trustworthy and reliable. However, they differ by the area of coverage, currencies they support, fees, FX margins, and extra services. Therefore, you should find out what each of them offers to pick what would be best for your current investment plan.

And remember, nothing stops you from having multiple accounts. So you can use any or even all of these services to make sure you always get the best terms.

Why Online Money Transfer Services Do Not Operate from India?

For all that India receives the largest amount of remittances and that it’s a very attractive country for investors, big money transfer services don’t work here. You can use them to send money to India. However, they don’t actually operate out of the country.

The main reason for this is that it’s hard for foreign companies to enter India at all. At the moment, the situation is changing as the government has allowed some slacker terms for foreign investors. But this change is not big enough yet.

Hopefully, the situation will keep progressing in the right direction. If it does, Indian investors will have more opportunities abroad. This will definitely be a boost to the country’s economy.

But as it stands now, we can only be happy that all major money transfer services support INR. This means that migrant workers from India and foreign investors have a chance to send funds to the country for cheap.

 

About Aditi Singh 81 Articles
Aditi Singh is an independent finance and investment advisor since 7 years and recently added with Investment Pedia. Users are welcome to put comments on her contributions.

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