If your business has ever had to send or receive money abroad, then you probably know that relying on one’s bank to handle the transaction can prove painfully costly. The good news for consumers is that there are plenty of Money Transfer Companies whose entire raison d’etre is to offer business money transfers for less. However, choice can sometimes feel like a terrible thing and with over 500+ options to choose from, there may even be too many companies offering money transfers. In this post we are going to show you how to compare money transfer services and find the best exchange rates for your businesses’ next currency transfer.
How To Compare Money Transfer Companies
Comparing different money transfer companies isn’t entirely straightforward as there are a number of different considerations. Obviously, a useful starting point is to use a money comparison site but this will only really help if you know what you are looking for.
The first thing to pay attention to is transaction fees. Whereas banks tend to charge transfer transaction fees that range from $2.50 – $50, international money transfer companies tend to be astronomically lower ranging from $0 – $1. The exact transaction fee levied by a money transfer specialist sometimes varies depending on the particular details of the transaction (the currency being sent, the destination, and the amount).
However, focusing too much on fees can prove to be something of a red herring and it is much more important to pay attention to foreign currency exchange rates. When a bank processes an international transfer, they will usually apply a foreign exchange “mark-up” that is 3-5% above the currency whereas, happily, money transfer companies tend to apply a markup between 0.5 – 1.5%. Again though, the exact mark up a provider applies on a transaction can also vary depending on the particulars of the transfer.
It is quite common for some providers to lure customers in by offering zero-transaction fees, but then make the money back (and then some…) by using less favourable rates than their competitors.
All of this can make comparing different providers difficult and really, the only way to comprehensively do it is to get a quote from all of them which can prove very time consuming.
Service, Tech and Extras
That said, there is more to this than fees and rates. While fees and rates will always be the main driver, it can also be useful to pay attention to how user friendly and efficient a providers platform is, what there customer service is like, and whether they offer any extra services such as multi-currency accounts or other hedging tools; these extras can prove especially valuable for corporate and business customers.
Finally, many money transfer providers offer both private accounts and business accounts. However, many have separate fee scales for personal and business customers and as such, a provider that may offer the best exchange rates for businesses may not be the best option for a personal client!
Top 5 Companies For Business Money Transfers
As you can see, with some many considerations to take into account, choosing between providers can feel seriously overwhelming. With this in mind we have picked 5 of the best rates and regarded business money transfer and business foreign exchange companies.
1. Moneycorp – Top Rated Money Transfer Company
London’s Moneycorp was originally founded in 1979 making this lists’ veteran. Constantly innovating, MoneyCorp now exists as a world beating international money transfer and foreign exchange specialist. MoneyCorp is able to facilitate international transfer and payments in over 120 currencies and moves an astounding £36 billion annually.
2. Wise – Easy To Use Money Transfer Provider
Initially founded as Transferwise, London’s Wise have risen fast to become a firm favourite amongst digital nomads, freelancers and contractors and transfers a whopping £8 billion per month! They have a very slick platform and offer low fee transfers at decent exchange rates.
Do note that while Wise are a great option for low maintenance users, they don’t offer anything in the way of customer service and do not offer hedging tools. As such business clients may well wish to consider one of the Wise alternatives.
3. Currencies Direct – Best For Currency Transfer
UK based Currencies Direct also offers bank beating rates on over 40 global currencies and last year, helped move £7.5 billion across the world.
4. OFX – Best For Business Foreign Exchange
Since 1998 Sydney’s OFX have secured their place as one of the world’s leading B2B money transfer providers, spending $20 billion each year. OFX specialises in offshore payrolls and clearing foriegn invoices. With a good set of hedging tools and a bespoke account manager service, OFX is a good choice for corporate clients.
5. XE – Best of the Wise Alternatives
Perhaps the definite name in rate checking, XE also offers excellent money transfer options. XE can handle transfers to over 130 countries and offer bank beating rates. Despite a transaction limit of $500,000 XE’s annual transfer amount still totals $10 billion.
Large Sum Transfers and Regulation
Money transfer companies routinely handle large sum transfers safely. Money transfer providers are required to be registered with the financial authority of their home country and in order to be able to operate in a jurisdiction, a provider needs to be certified and regulated by the relevant financial services authority. In effect, it usually means that providers are subject to multiple different sets of regulation which often means they are even more strictly regulated than banks.
How To Start Transferring Money Internationally With a Non Bank Provider
There are over 500 money transfer companies all offering excellent fees and rates on both personal and business money transfers so there is no need to use the banks anymore. In order to find the best business foreign exchange and transfer provider for your businesses’ currency transfer needs, simply follow our guide in order to compare money transfer companies.
As we have shown, MoneyCorp are an excellent option offering some of the best exchange rates for businesses as well as a great service. Wise on the other hand are an excellent choice for sole traders although those with more complex needs may wish to seek one of the Wise alternatives instead.
