Whether the sum you need to send overseas is large or small, there are several different ways to transfer money internationally.
Banks, building societies and brokers all provide transfer services. In recent years, a number of transfer firms have also come on to the scene, offering what may seem like very attractive rates.
However, such deals can sometimes be misleading.
There are two main costs to consider: the exchange rates and the fees.
Consumers have to be wary of the balance between getting the best exchange rate and getting value for money on any charges, and vice versa.
Getting the best deal also depends very much on the amount of money you are transferring.
Here are some top tips for getting a good deal on money transfers for those moving large sums, and for those moving smaller pots of cash overseas.
Size
If you are looking to transfer a fairly large sum of money – thousands of pounds – your best bet will most likely be a foreign exchange (FX) broker.
Their fees are typically very low, and brokers have specialist knowledge of exchange rates and volatility.
Exchange rates can change quickly, and transferring at the wrong time can be a costly mistake.
Some brokers like Caxton will allow you to secure a rate in advance of transfer, depending on how much money you are moving. Various "buy and hold" facilities – also known as futures – mean you can buy currency at a set price and transfer it as and when you need to.
This can be extremely useful for people buying a property abroad, where a large deposit is required.
One thing to bear in mind, however, is that FX brokers are not covered by the Financial Services Compensation Scheme. So if you are holding significant amounts of cash with a broker and they go bust, you could lose all of your cash.
If you want to move smaller sums, you could consider using either a high street bank, or a money transfer service.
The upside of using a bank is that they are regulated and your money will be safe and secure.
You can also get around fees if you have a partner account abroad, or a registered foreign account with another provider.
Alternatively, there are a large number of online and high-street money transfer services available that offer a range of different fees and exchange rates, which can change on a daily basis in line with currency fluctuations.
Getting the best deal
Tashema Jackson of uSwitch said that discounted low-price fees do not necessarily represent the best value for money, especially when it comes to transfer services.
“Commission-free is a slogan you will often see bandied about when dealing with foreign currency. Many companies that do so often reduce the exchange rate you get, so you end up paying for the service anyway,” she said.
She suggested checking the exchange rate on offer with the official rate online, to spot a service provider that is trying its luck.
Consumers should shop around using the large number of price comparison sites on offer to work out the best deal for them, or speak to a number of different brokers.
There are also alternatives to moving money through a dedicated transfer service.
Pre-paid debit or credit cards can be loaded up with money and picked up overseas by a receiving party.
Unfortunately, the old-fashioned cheque is not going to give you the best value for money. You will probably be charged by both the foreign bank and your British branch.