The Best Foreign Currency Transfer Service for Businesses in 2023
Making a foreign currency transfer is easy today as almost all banks offer this service. But banks are expensive and a small business that wants to go global will lose a sizable part of its profit because of the transfer costs.
The solution is to use the services of money-transfer-companies that are becoming popular every day. But you need to be rather diligent in researching the companies emerging like mushrooms.
Make sure that they are truly reliable and not attracting businesses offering a low foreign currency exchange rate just to dupe us.
Who Needs a Foreign Currency Transfer Service and Why?
Making international money transfers is becoming a regular thing these days for not just businesses but even individuals.
If you want to start an export business or just a small online shop, it is a great idea considering how much the eCommerce sector has grown since the COVID-19 pandemic started.
You’ll need to accept payments from international customers.
You are also bound to make an occasional cross-border payment.
If you want to cut your costs by hiring freelancers abroad, you have to pay them, and it means making a foreign currency transfer. The majority of people go to their regular banks to make an international transfer.
This can be a tiring and slow process. Though the creation of international SWIFT payments enabled banks to make their foreign currency transfer services faster online and it did not actually make bank transfers affordable.
Because even if the transfer fee charged by your bank is small, you will be losing a large amount of money since banks give you a high foreign currency exchange rate.
So, a single international bank payment might cost you up to 3% of the transfer volume. The amount will be even higher for exotic currencies and for smaller transfers.
How Money Transfer Companies Can Save You Money?
Money transfer companies were launched for the purpose of making these services affordable.
They act as a third party between yourself and your recipient. You’ll simply make a transfer to the company’s domestic account in your country.
Then, the company will transfer the money to the recipient’s account from their own account located in the recipient’s country locally in a short time.
This might seem complicated, but it’s the reason why a foreign currency transfer via this method is cheap.
No money actually crosses the border and two local transfers are very cheap and save time too.
These companies also act as currency wholesalers. So trading high volumes of currencies allows them to keep the exchange rate close to the mid-market.
Thus if your business makes large transfers you will be getting them at the lowest possible rate.
But the money transfer companies are a new concept. Online currency transactions are not well-regulated. So you’ll need to study some company reviews in order to find the best and cheapest service provider you can trust with your money.
Top 3 Foreign Currency Transfer and Exchange Companies for Businesses
| Name | Moneycorp | TorFX | WorldFirst |
| Supported Currencies | 120 | 59 | 121 |
| Offices | The UK, the USA, Romania, France, Brazil, Australia, Spain, Gibraltar, Ireland, the UAE | The UK, Singapore, Australia | The UK, Australia, Netherlands, Japan, Singapore, Hong Kong |
| Regulation | FCA, GFSC, ACPR, C&ED Hong Kong, DFSA | FCA, ASIC | FCA, C&ED Hong Kong, ASIC, FINTRAC |
| Minimum Transfer | $50 | $100 | £1000 |
| Main Advantages | * Licensed banking facility that can hold your money as long as necessary * Low exchange rates * Multiple industry awards * No fees * Dedicated dealer guidance * Industry veteran and leader (1979) * Annual turnover £36.9 * High D&B rating | * Barclays Bank accounts * No fees worldwide * Easy to use website and easy to get a quote * Saving 2-4% of the gross total of exchanged finds * Currency guidance * Expat and industry awards * Fast transfers * High level of customer satisfaction | * Dedicated dealers & currency guidance * Extremely low fixed exchange margins for large turnovers (0.25%-0.15%) * No fixed transfer fees * Biggest variety of currencies in the industry * Great app * Wide offering for eCommerce businesses |
How to Choose the Best Money Transfer Companies?
Choosing a foreign currency transfer service is easy with this table as you compare quotes and see the cheapest offer fast.
Even a mere look at a company’s history will show you whether it’s regulated and how long it has been in business.
So you’ll be able to trust its credibility. But what about the service?
The money transfer companies seem to be reliable after this inspection. But this doesn’t mean that you’ll be satisfied with the service you get.
If you don’t do diligent research of the market, you might still end up being ripped off. Unfortunately, not all money transfer companies can be trusted to be fair.
They may not live up to their promises of cheap and fast transfers. The best way to find out if the company is truly trustworthy is to study its reviews.
You should take a look at both professional reviews and customer opinions shared on forums. This will give you a good picture of the company’s actual strengths and weaknesses.
For example, Moneycorp, TorFX, and WorldFirst are all excellent providers of versatile foreign currency transfer and exchange services.
But upon a closer look at customer reviews you’ll see that the Moneycorp signup process is cumbersome. It will also be quite hard to change any personal details after registering your account.
Though after the signup, reviewers commend the smooth work of the company and courtesy of dealers. TorFX offers the best guidance in the industry due to its experienced and very talented team.
Yet there are some complaints about returned payments and some customers find the rates high.
This is a small detail, but if your business profit margin for international deals is to be kept low, this information should affect your decision.
Meanwhile, WorldFirst is a fantastic choice for eCommerce businesses.
This foreign currency transfer service is the easiest to use and dedicated dealers the company provides are excellent. But some customers complain that they can’t get original copies of some documents.
Also, it seems that transfers to some locations, like Brazil, are slow with this company. So studying reviews allows you to evaluate the company from different angles.
This will make it simple for you to choose the service that will work best for your business.
FAQs
The best foreign currency transfer service for businesses depends on several factors, such as the countries involved, the amount of money being transferred, and the credibility of the service. Reviews and expert opinions can help you find the best service for your needs.
Businesses can minimize costs when transferring foreign currency by making sure that the exchange rate is favourable, finding a transfer provider with low fees, and comparing providers to get the best deal.
Businesses can choose from a variety of foreign currency transfer services, including traditional wire transfers, global payment services, virtual wallets, and more.
The time taken for a foreign currency transfer to be completed can vary depending on the method chosen, but it generally takes anywhere from 1 to 4 business days.
Foreign currency transfers come with some risks, such as fluctuating exchange rates, unreliable transfer services, and transfer limits. It’s important to research any service before making a transfer.
Yes, many transfer services offer tracking tools so you can keep an eye on the progress of your transfer, from start to finish.
Yes, many transfer services charge additional fees for foreign currency transfers, such as commission fees, transfer fees, exchange rate fees, and more. Be sure to read the fine print before making a transfer.
Yes, when transferring money to another country, you may need to provide additional information and meet certain requirements, such as providing documents related to the transfer and your company’s identity.
Businesses can protect themselves from currency fluctuations when transferring money by locking in an exchange rate for a future date or using a transfer option that offers currency hedging.
Most foreign currency transfer services are safe to use, as long as you take the necessary precautions and research the service you’re using. Make sure the provider has solid security measures, positive customer feedback, and a good reputation.
