Many immigrant workers are able to utilize the fruits of their labors to provide for their families overseas. These are commonly called international remittances. In this post I will explain how to transfer money internationally.
Intermittances Are Very Important For Families
Globally international remittances total up to almost half a trillion dollars in 2016 with the trend only increasing. That may only be 0.4% of the global GDP, but for many countries a good slice of their financial pie would disappear if migrant workers stopped their remittances. In fact, even a monthly gift of $200-$300 could be the majority of these families’ income. Just imagine trying to live off less than $500 each month. Even the most frugal people following the FIRE movement would struggle to pull that off in America.
It is crucial to know how to transfer money internationally, otherwise a good slice of the money you try to send to your family will be taken by the company you try to send money with. The World Bank claims that the average percentage from fees for sending money internationally is 7%. If your family needs the money, you should try to minimize fees that will reduce your gift.
Make Your Remittances Regular But Less Frequent
Can you move money yourself? Not for free. You cannot expect any money transfer company to work for free. They are providing you with a valuable service. You can expect fees from sending money internationally. Unfortunately, transferring money internationally is riddled with fees. There are outgoing fees, exchange rates, and even reception fees. On top of that, there will likely be hidden fees.
One of the few ways you can avoid these fees is to make less frequent transfers. Many of these fees are based off a percentage of the money transferred. However, some are flat fees per transfer. To avoid the fees per transfer you may want to try to send only a few, if not even just one transfer a year instead of every month. This could minimize the costs per transfer.
Try To Use Inexpensive Transfer Services
There is next to no way to transfer money for free. Banks will be among the most expensive ways to transfer money internationally. However, there are many less expensive ways to transfer money internationally. One of the most economical ways to transfer money international is using TransferWire. They have among the cheapest fees in the business and can be used to transfer money to over 70 countries. I have checked many of the transfer exchange rates for transferring money. They tend to be around 1% but some have over a 2% fee. I would never expect a fee of around 5%, much less the average 7%. The most negative thing I have heard about them is that the money transfer is not the fastest.
Transferring money internationally has been difficult for many years. It should not be difficult any more, or at least not as difficult. Your family and friends across the seas are relying on your efforts to help.