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How to avoid hidden fees and unfavorable rates while exchanging currency

In our globalized world, receiving payments from overseas is an inevitable one. However, Foreign currency exchange can come with high fees that impact profits. Luckily, there are various ways to reduce costs for cross-border payments. Here are some expert tips to assist you save money on receiving payments from abroad with cheap transfer rates. Beware that exchanging cash outside the country can be more expensive than necessary.

Fees & Charges for International Money Transfers

Fee structures need to be more transparent when sending money abroad. The lack of transparency can make it challenging for users to comprehend the costs, which makes it difficult to choose the best payment mode. Additionally, it allows forex providers to take advantage of users by charging hidden fees. Ultimately, this leads to poor customer experiences and a lack of trust in the industry. It is essential to double-check the two main costs associated with any money transfer.

 

Transfer fees

When you send money to an international account, the forex provider may charge a transfer fee, which is the cost of routing the money. Transfer fees differ depending on the provider, the transaction amount, and the destination country. Traditional forex providers and banks typically charge a transaction fee between Rs 500 and Rs 2,000 for every international fund transfer. However, some forex platforms don’t charge any transfer fees for overseas money transfers. To avoid unnecessary costs, it’s important to compare the prices of different providers before sending money abroad.

Nostro charges for carrying out international transactions

Indian banks open Nostro accounts in foreign banks to manage foreign currencies and money transfer transactions. When people send money abroad, their banks process the necessary transaction via their Nostro accounts. The foreign bank, as an intermediary, charges a Nostro fee ranging between USD 15 to USD 30 per transaction. It is crucial to determine these charges before selecting a service provider, and the sender or the receiver can pay them.

Now know the HIDDEN Fees & Charges!

Hidden Fees & Charges on International Money Transfers

Sending money abroad can be more expensive than you realize, especially when forex markup and fees are added. These costs can add up and become a significant expense for the sender. Some forex providers include a markup fee in the exchange rate, meaning the customer pays more than the exchange rate. This markup fee helps the provider offset any changes or fluctuations in the exchange rate. Be aware of these hidden fees to make informed and correct decisions before sending money abroad.

How to Avoid these Hidden Charges?

Instead of relying on unreliable forex providers and money changers to send your money, researching and finding the best option to help you save money is crucial. While your local send money abroad, service providers may offer simple and helpful services for your monthly transactions, sending money overseas can be more complicated.

Get our Tips to Avoid Hidden Fees & Charges on International Money Transfers

For a long, consumers were being charged “unnecessary fees on foreign transactions” without their knowledge by forex providers who added hidden exchange-rate markups. However, this is no longer the case. Here we enlist some tips to avoid hidden fees and charges for International Money Transfers:

 

1. Choose the Right Payment Method

Choosing the correct payment method to keep charges low when making cross-border Foreign currency exchange is important. International wire transfers from banks often come with high fees, so looking into other payment options is worth it.

2. Compare Forex Providers To Get Cheaper Rates

Banks are often seen as trustworthy when transferring money, but they can charge high fees for Foreign currency exchange. It’s essential to choose a reliable service provider for larger transfers. People are turning to online options for cost-effective and secure Foreign currency exchange. To determine the best provider, consider whether they charge a flat fee, a percentage rate, or no transfer fee. Opting for a provider that offers low or no transfer fees can reduce costs and increase your payout. Make sure to choose your money transfer provider carefully.

3. Look at the Hidden Markup Over the Interbank Rate

If you’re planning to study abroad, it’s important to consider the various costs involved. One crucial factor to remember is the interbank rate when transferring money. You can easily find this rate on search engines or business news channels. It’s worth noting that banks and local money changers often mark their rates significantly above the interbank rate. The markup can be as high as 5%. By choosing a forex platform that offers minimal markup, you could save anywhere from Rs 5,000 to 40,000 on a USD 10,000 money transfer. Opting for rates closer to the interbank rate will make your transaction more cost-effective.

4. Check the Offers, Discounts, and Promo Codes

If you need to send money internationally, it’s worth checking if online forex companies offer discounts or coupons. You can save money during specific periods, like holidays. Look for promo codes and coupons on a company’s website or contact them directly via email, chat, or other means. Also, watch for special offers for new customers from online money transfer services. These offers may include zero transfer fees, saving you money, especially if you’re sending large amounts. Signing up for these proposals is an excellent way to avoid high fees.

5. Negotiate with Your Payment Provider

If you often receive Foreign currency exchange from different countries, discussing with your payment provider to negotiate for better exchange rates could be beneficial. Some providers may offer discounts for frequent or high-volume transactions. You can explore and compare rates from different providers to ensure you get the most favourable deal.

6. Avoid Multiple Transfers

You’ll be charged transfer fees for each transaction if you transfer money in small increments. To save money, it’s best to combine your small payments into one larger transaction. Some forex providers offer promotions and waive transfer fees for lump sum transfers, so it’s worth considering.

What’s the best way to transfer money abroad?

Regarding International money transfers, many factors affect the rates different companies charge. At Remitforex, we strive to keep foreign exchange transactions transparent and affordable, with no hidden costs or unwanted exchange rates. We aim to make forex transactions more accessible, convenient, and affordable, helping consumers save significant money. Using our user-friendly website and mobile app, you can easily send money abroad from India for various purposes, such as paying student fees, sending money to family and friends, transferring money for work or immigration, and more.

Here’s why you should use Remitforex when you’re sending money overseas:

  1. Low-cost remittance services, entirely paperless and online.
  2. Live rates provide a better exchange rate for the customers.
  3. Save up to 5% on standard bank rates.
  4. No hidden charges
  5. Zero transfer charges on International money transfers
  6. Complete the transaction within 3 days.
  7. All transfers within 12-48 hours of receiving the funds and documents.
  8. High-quality customer support services.

When transferring money internationally, staying up-to-date and comparing rates and fees before deciding is important. At Remitforex, we guarantee you’ll receive cheap transfer rates and the highest quality service.

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