Remittances to Sri Lanka are largely dependent on temporary labor migration. About 2 million Sri Lankan migrants sent remittance of $7.16 billion in 2018 which constituted 8.25 percent of the GDP, contributing a higher share of the country's total foreign exchange earnings. In 2019, an estimated $6.7 million was sent by migrants, which covered 84% of the country's trade deficit.
With the COVID-19 pandemic, global recession including falling oil prices and job loss, the World Bank projects that the remittance to Sri Lanka will decline by 19 percent this year. However, the more pressing issue for the Sri Lankan government is to repatriate the migrant workers who have lost their jobs and without access to proper health facilities in the foreign countries amid the pandemic.
Under normal circumstances, migrant workers do return and reintegrate back into their home communities once they can establish a favorable financial condition. The successful economic integration can only happen with good remittances management strategies that will reduce the dependence on remittance for income and makes re-migration a choice rather than a necessity.
Particularly for Sri Lankans migrants, much of the remittances go to consumption and not to saving or investment. The knowledge of financial literacy is very crucial to manage earnings, plan for the future, and meet the challenges of life such as losing a job or other emergencies.
Financial tips of Sri Lankans returning home:
Migrants go to other countries in search of better economic opportunities to provide for their families. Working in foreign countries, they often have to balance personal financial needs and the needs of the family left behind. Joint financial planning is crucial for setting realistic expectations and working together to achieve financial goals.
Pre-departure planning may include the duration and the specific goals of migration, the cost of migration, and how to finance it. Participation of the family members in the decision-making process also enhances trust and builds better relationships.
It reduces family tension that can happen over the control and misuse of remittances. Understanding that remittances are hard-earned money often in harsh working conditions will promote the wise use of money.
Government authorities have recognized the importance of financial literacy as part of beneficial migration. As part of long term and sustainable economic development, authorities both in the sending and receiving countries need to come with financial products and services (such as savings, loans associated with remittances, insurance and credit, and electronic payment facilities) for the migrants to help better manage their money.
Banks and microfinance institutions can provide such facilities and at the later stage also offer a suitable framework for small-scale investments for the migrants. Understanding financial products and knowing how to take advantage of them is a priority.
Migrants will benefit from increased financial inclusion which will give access to these financial products and services and start building their financial future.
Building a saving culture especially for retirement, children's education, or for medical and other emergencies; making a budget according to the income and keeping track of expenditure are basic habits for a healthy financial life.
Such habits not only ensure short-term financial security but it also paves the way for long term financial security and breaks the reliance on remittances income.
Having additional sources of income through investing remittance productively like starting small scale enterprises will stop the family from being remittance dependent and eventually, create a favorable situation to return home and reintegrate economically.
The cost and difficulties while sending remittances can be avoided by opting for safe and cost-effective remittance methods i.e send money online. Sending money online through money transfer specialists is the safest and cheapest way to send money to Sri Lanka.
Digital financial products such as mobile money and e-wallets are gaining popularity which has the potential to make remittances safer, cheaper, and faster and also provide a convenient way to send money online and a secure way to store the remittances received by the migrants' family. Access to such money transfer services is crucial for migrants who want to send more money home and also save more.
In conclusion, being financially educated and the ability to make sound financial decisions at different stages in the migration cycle viz. pre-departure, during service and return, and reintegration are essential, especially for temporary migration workers. Sri Lankan authorities have had to impose travel restrictions on Sri Lankan migrant workers who had planned to return home and those who were to leave the country for foreign employment. This was due to safety and security reasons as the positive cases of COVID-19 continued to rise. From 24 July, Sri Lanka is exempted from the list of countries where non-essential international travel is prohibited. Foreigners in Sri Lanka who wish to return to their respective countries are advised to contact the nearest Sri Lankan High Commission for guidance.
In today's globalized world, sending money abroad has become a common necessity. People transfer money across international borders for various reasons, such as supporting family members abroad, paying for education or medical expenses, carrying out business transactions, or even for trips overseas.International money transfers facilitate these financial transactions, allowing individuals and businesses to transfer funds safely and efficiently to recipients in different countries.However, navigating the intricacies of international money transfers can be daunting. Factors such as exchange rates, transfer fees, and security concerns can significantly impact the efficiency and cost-effectiveness of your international money transfer.Canada, known for its strong economy and diverse population, attracts people from around the globe. Whether you have family or friends residing in Canada, need to transfer money for business, or are relocating to the country, knowing how to send money to Canada is crucial.In this blog, we will walk you through the process of sending money to Canada, step by step. We will explore the different transfer methods available, and discuss the factors you need to consider to help you make an informed decision that suits your specific needs to send money to Canada.International Money Transfer BasicsInternational money transfers have become increasingly important in today’s day and age. By understanding the basics, you can navigate the process of sending money abroad more confidently.Exchange Rates and Their Impact on Money TransfersExchange rates represent the value of one currency in relation to another. They fluctuate constantly due to various factors such as economic conditions, interest rates, geopolitical events, and market forces.The exchange rate can significantly influence the overall cost and value of your transfers.When sending money to Canada, you will need to convert your currency into Canadian dollars (CAD), and the exchange rate will determine how much CAD you will receive for your money.CAD Currency Forecast for 2023Economists and currency analysts expect the Canadian dollar to strengthen against the US Dollar in 2023 and into 2024, owing to several factors, such as an optimistic global growth and inflation outlook, a possible change in expectations regarding monetary policy, and an overall environment that favors taking on more risks.As per Trading Economics, the CAD is expected to trade at 1.34 by the end of this quarter, and in 12 months’ time, it is expected to trade at 1.39.As central banks approach the end of their cycle of raising interest rates, economists are more optimistic that the global economy may avoid a recession this year. This positive outlook is expected to have a favourable impact on the Canadian dollar, potentially providing it with a boost.How Do Exchange Rates Impact Money Transfers?The Exchange Rate: The actual rate at which currencies are exchanged. The Exchange Rate Margin or Markup: The additional fee or markup charged by banks, money transfer providers, or financial institutions for facilitating international transactions.The Exchange RateWhen the exchange rate is unfavorable, it means that your currency has a weaker value compared to the Canadian dollar. As a result, you will receive fewer Canadian dollars for the same amount of your currency, reducing the value of your transfer. This can be a significant concern, especially when sending large sums of money.The Exchange Rate MarginThe exchange rate margin adds an extra cost to your money transfer. Banks and financial institutions often apply a margin to the real-time exchange rate to cover their operational costs and generate profits. These margins can vary widely between providers, with some offering more competitive rates and lower fees than others.Therefore, it's smart to compare exchange rates and margins across different providers to ensure you're getting the best value for your money.How Do I Get the Best Exchange Rates When Sending Money Overseas?There are a few ways to get the best exchange rates when you want to transfer money to Canada.Time Your Transfer:Exchange rates are constantly changing, so keep an eye on the currency market and monitor exchange rate trends. This can help you identify favorable times to transfer money when the rates are more advantageousHedging Options:Some providers offer hedging options, such as forward contracts or limit orders, which allow you to lock in an exchange rate for a future transfer. These tools can help protect you from unfavorable rate fluctuations and provide more certainty in your transactions.Compare Transfer Providers:Research and compare different money transfer providers to find the ones that offer competitive exchange rates and lower exchange rate margins. Online money transfer services and specialized remittance companies often provide more favorable rates compared to traditional banks.Factors to Consider When Sending Money to CanadaThere are several important factors to consider to ensure a smooth and cost-effective transactionExchange Rates: As we have discussed, exchange rates can significantly impact the value of your money transfer. Compare the exchange rates offered by different providers and consider opting for a provider that offers competitive rates with minimal markup. Timing your transfer when exchange rates are favorable can also help maximize the value of your money.Transfer Fees: Different money transfer providers charge varying fees for their services. Compare the transfer fees across different providers to find the most affordable option. The fees may vary based on the transfer method, amount, and speed of delivery.Transfer Speed: Consider the urgency of your transfer and the speed at which you need the funds to reach the recipient when choosing a transfer provider. Some providers offer faster delivery options for an additional fee, while others may have longer processing times. Choose a transfer method that aligns with your timeline requirements.Security and Reliability: Ensure that the money transfer provider you choose has robust security measures in place to protect your funds and personal information. Look for reputable and trusted providers with positive customer reviews and a track record of reliability in handling international transfers.Delivery Options: Consider the available options for the recipient in Canada to access the funds. Can they receive the money directly into their bank account? Can they pick up cash from a designated location? Assess the convenience and suitability of the options offered by the provider.Regulatory Compliance: Ensure that the money transfer provider adheres to the regulatory requirements for international transfers to Canada. This includes compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations to ensure the legality and transparency of the transaction.Customer Service: Evaluate the quality of customer support provided by the money transfer provider. In case of any issues or inquiries, it is important to have access to reliable and responsive customer support channels that can assist you promptly.Customer Reviews: Read reviews and seek recommendations from trusted sources or individuals who have previously sent money to Canada. Their experiences and insights can provide valuable information about the reliability, efficiency, and overall experience of different money transfer providers.Different Methods of Sending Money to CanadaThere are three main ways you can send money abroad, each with its own advantages and considerations. Consider factors such as transfer fees, exchange rates, speed, security, and recipient preferences when choosing the most appropriate method to send money to Canada.Bank TransfersBank transfers involve sending money from your bank account to the recipient's Canadian bank account bank. Bank transfers are commonly used for large transactions or regular payments. To initiate a bank transfer, you typically need the recipient's bank account number, routing number, and the bank's SWIFT/BIC code. A bank transfer can take several business days to process, and fees may vary depending on the banks involved.Online Money Transfer ServicesOnline money transfer services mostly operate through dedicated online platforms or mobile apps and offer a convenient and often cost-effective way to send money to Canada. To use an online money transfer service, you usually need to create an account, provide identification documents for verification, and enter the recipient's details. Online money transfer services offer competitive exchange rates, lower fees compared to banks, and faster transfer times, often completing transfers within one to three business days.Remittance CompaniesRemittance companies specialize in facilitating international money transfers. These companies have extensive networks and partnerships with financial institutions worldwide, including Canada. Remittance companies typically offer multiple options for sending money, including wire transfer, bank transfers, cash pickups, and mobile wallet transfers. They often have a wide range of agent locations where recipients can collect cash in Canada. Remittance companies may charge varying fees and offer different exchange rates, so it's important to compare options to find the most suitable provider to transfer money.Step-by-Step Guide to Send Money to CanadaHere are the general steps to send money to Canada:Depending on your transfer needs, in terms of speed, convenience, cost, and security, explore different transfer methods available, such as bank transfers, online money transfer services, or specialized remittance companies.Choose a reliable provider that suits your specific needs. Comparing multiple providers can help you find the most cost-effective and reliable option.With the preferred service provider, register an account and provide the necessary identification and verification documents. This step ensures compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations.Provide accurate information about the recipient, including their full name, contact details, and bank account information. Double-check the details to avoid any errors that could delay or disrupt the transfer.Calculate the costs and fees associated with the transfer, including any upfront charges, exchange rate margins, and potential intermediary bank fees.Initiate the Transfer after entering the transfer amount and confirm the transaction.Track the transfer status with the help of the tracking number or transaction reference. Most providers also send notifications or updates via email or SMS.Let your recipient know about the upcoming transfer. Share any relevant information such as the expected amount, currency, and estimated time of arrival.Contact customer service immediately for assistance if any issues or delays occur during the transfer. They can provide guidance and resolve any concerns or inquiries you may have.Three Reasons to Use Money Transfer SpecialistsMoney transfer services are dedicated to the task of transferring money-it’s what they do all day, every day.Here are three key reasons:Cost-Effective: Money transfer specialists often offer more competitive exchange rates and lower fees compared to traditional banks. They specialize in international transfers and have streamlined processes that allow them to offer better rates.Faster Transfers: They are known for their efficient and speedy transfer services. They have dedicated systems and networks in place to ensure quick processing of transactions. In some cases, transfers can be completed within minutes or a few hours, depending on the provider and the destination country.Expertise and Support: They have extensive knowledge and expertise in international transfers. They can provide personalized assistance and guidance to help you navigate any challenges or concerns you may have during the transfer process. Their customer support teams are often well-equipped to address any queries or issues you may encounter.Top Online Money Transfer Providers to Send Money to CanadaWiseFormerly known as TransferWise, Wise is a trusted and popular choice to send money to your recipient's Canadian bank account. They offer competitive exchange rates, low fees, and transparency in their pricing. Wise stands out for its user-friendly interface and easy-to-use platform, making it convenient for individuals and businesses to send money abroad.XE Money TransferRegarded as a reputable money transfer provider, XE offers fast and secure online transfers to Canada. Known for their competitive exchange rates and no transaction fees, XE provides a cost-effective solution for sending money internationally. With a user-friendly website and mobile app, they offer a seamless experience for customers looking to transfer money to CanadaRemitlyRemitly is a popular choice for individuals sending money internationally. They provide competitive exchange rates and offer two different transfer options: Express and Economy. Remitly's user-friendly platform and mobile app make it easy to send money conveniently and securely, catering to the needs of customers looking for quick and reliable transfers.WorldRemitWorldRemit is a well-established money transfer service that enables fast and secure transfers to Canada. With competitive exchange rates and low fees, the provider offers a user-friendly online platform and mobile app for hassle-free money transfers. They provide multiple transfer options, including bank account deposits, cash pickups, and mobile wallet transfers, making it convenient for your recipients in Canada.InstaremInstarem is a digital cross-border payments company that offers efficient and low-cost international transfers. With competitive exchange rates and low fees, Instarem provides a transparent and reliable platform for sending money internationally. Their fast-processing times and user-friendly interface make it a popular choice for individuals and businesses.SkrillSkrill is a widely recognized digital wallet and payment provider that also offers money transfer services to several countries. With a focus on simplicity and convenience, Skrill enables users to send money quickly and securely through their online platform and mobile app. They offer competitive exchange rates and transparent fees, making it a suitable choice for online money transfers.XoomXoom, a PayPal service, specializes in international money transfers all across the globe. They offer competitive exchange rates and a convenient online platform for sending money securely. Xoom provides various transfer options, including bank account deposits and cash pickups, catering to the diverse needs of customers looking to transfer funds abroad.PandaRemitPandaRemit is an emerging online money transfer company that focuses on providing efficient and reliable international transfers. They offer competitive exchange rates and low fees, ensuring cheaper transactions. PandaRemit's user-friendly website and dedicated customer support make it a promising choice for transferring money to Canada.Western UnionWestern Union is a well-established and widely recognized money transfer service that allows individuals to send money abroad through their online platform or physical agent locations. With a vast global network, Western Union offers convenient transfer options, including cash pickup and bank account deposits. While their fees and exchange rates may vary, Western Union remains a reliable choice for international money transfers.OFXOFX is a trusted provider of online money transfers, offering competitive exchange rates and low fees. They specialize in international transfers for individuals and businesses, providing dedicated support and secure transactions. OFX's user-friendly platform and personalized service make them a popular choice for those seeking reliable and cost-effective transfers to Canada.ConclusionSending money to Canada can be a straightforward process with the right approach. By considering various factors such as exchange rates, fees, transfer speed, and convenience, you can make informed decisions about the best method to send money to Canada.There are several top online money transfer services to choose from when sending money online. Whether you prioritize low fees, speed, or ease of use, these companies provide excellent options for sending money securely to Canada. By comparing their features and services, you can select the best online money transfer provider that suits your specific needs and preferences.Before sending money internationally, check out our online comparison tool to view top money transfer service providers side by side and always get the best exchange rates!
Whether it’s for conducting cross-border business, managing personal finances during travel, or analyzing global economic trends, an understanding of international currencies is essential for making sound financial decisions and thriving in an interconnected global economy.If you are a globetrotter seeking new adventures, a savvy investor navigating the global market, or simply an inquisitive mind fascinated by the intricacies of the financial systems, this guide will provide you with a comprehensive overview of international currencies, their characteristics, and the current state of the top international currencies.Central to our exploration of international currencies is the concept of exchange rates. We will also delve into how exchange rates work and the factors influencing them.Let’s unravel the mysteries of international currencies, connecting us all through the language of money.What is a Currency?A currency is a form of money used in a specific country or region as a medium of exchange for goods, services, and investments. Each currency is represented by a unique code, which helps distinguish it from other currencies. For instance, the United States dollar is denoted as USD, the euro as EUR, and the British pound as GBP.What are International Currencies?International currencies are monetary units that are widely accepted and used for transactions across national borders. They serve as a medium of exchange, facilitating trade, investment, and financial transactions between countries. These currencies are typically issued and regulated by sovereign nations or groups of countries and they are accepted beyond their country of origin due to factors such as economic stability, geopolitical influence, and international trade relationships.Major international currencies, often referred to as reserve currencies, such as the US Dollar and the Euro are held in substantial quantities by central banks around the world to support international transactions and maintain financial stability. Other major international currencies include the British pound (GBP), Japanese yen (JPY), Swiss franc (CHF), Canadian dollar (CAD), Australian dollar (AUD), and New Zealand dollar (NZD).Some notable examples of international currencies include the Brazil currency ( Brazilian Real), Korean currency (Korean Won), Thailand currency (Thai Baht), Turkey currency (Turkish Lira), Vietnam currency (Vietnamese Dong), Poland currency (Polish Zloty), Sweden currency (Swedish Krona), Denmark currency (Danish Krone), Indonesia currency (Indonesian Rupiah), Singapore currency (Singapore Dollar), Czech currency (Czech Koruna), South Korea currency (KRW), Egyptian currency (Egyptian Pound), Swiss currency (Swiss Franc), Hong Kong Dollar, Malaysia currency (Malaysian Ringgit), and Israel currency (Israeli Shekel)These currencies represent various economies with unique characteristics and are actively traded in the global foreign exchange market. Exchange rates for these currencies fluctuate based on economic factors, market conditions, and geopolitical events, shaping their values relative to other currencies.List of International CurrenciesTop 10 Strongest Currencies as of June 2023The US dollar is generally seen as the most powerful currency in the world and certainly the most traded currency in the global financial market. The USD is also the largest reserve currency in the world. However, the greenback is not the strongest of the fiat currencies recognized as legal tender worldwide.Based on their relative value against the US dollar, here are the top 10 strongest currencies in the world as of June 2023.How Do Exchange Rates Work?The exchange rates are the rates at which one currency can be exchanged for another. In other words, they represent the ratio between two currencies and determine the price at which one currency can be bought or sold in relation to another.Exchange rates are quoted in currency pairs, such as USD/EUR or GBP/JPY, indicating how much of one currency is required to purchase one unit of the other currency.Understanding exchange rates is crucial for sending money abroad, making investment decisions, and managing currency risk management. They reflect the economic factors and market forces influencing the demand and supply of a currency.Types of Exchange RatesExchange rates can be classified into two categories:FixedFloatingFixed and floating exchange rates are two different systems used to determine the value of one currency in relation to another.Fixed Exchange RatesIn a fixed exchange rate system, the value of a currency is set and maintained at a fixed rate against another currency or a basket of currencies. This rate is typically established and controlled by a country's central bank or monetary authority. Governments may choose to fix their currency to another currency, such as the U.S. dollar, or a commodity like gold.An example of a fixed exchange rate is that of the Chinese Yuan (CNY). The People's Bank of China (PBOC) maintains a fixed exchange rate for the CNY against a basket of currencies, with the U.S. dollar being the predominant reference. The PBOC intervenes in the foreign exchange market to manage fluctuations and keep the exchange rate within a predetermined range.Advantages & Disadvantages of Fixed Exchange RatesThe advantages of fixed exchange rates include stability and predictability in international trade and investment. They can promote confidence in a country's currency and reduce currency risk for businesses engaged in cross-border transactions.However, maintaining a fixed exchange rate requires significant intervention by the central bank and limits its flexibility to respond to economic changes.Floating Exchange RatesIn a floating exchange rate system, currency values are determined by market forces of supply and demand. The exchange rate fluctuates freely based on factors such as interest rates, inflation, economic performance, political stability, and market sentiment. Governments do not actively intervene to control or fix the exchange rate.For example, the United States has a floating exchange rate system, where the value of the U.S. dollar is determined by market forces of supply and demand. The Federal Reserve influences interest rates and monetary policy but does not actively intervene to fix the exchange rate.Advantages & Disadvantages of Floating Exchange RatesFloating exchange rates provide flexibility for currencies to adjust based on market conditions, allowing them to find their equilibrium levels. This system allows for automatic adjustments to external shocks and economic imbalances. However, floating exchange rates can be volatile, which introduces uncertainty for international trade and investment, as exchange rates can vary significantly over time.Mixed Exchange Rate SystemIt's worth noting that countries can choose to switch between fixed and floating exchange rate systems depending on their economic policies and objectives.Many countries today adopt a mixed exchange rate system, also called managed float system, that combines elements of both fixed and floating systems. In this system, the exchange rate is influenced or guided by government intervention to avoid extreme fluctuations. This approach aims to strike a balance between stability and flexibility.For example, India follows a managed floating exchange rate system. The Reserve Bank of India (RBI) actively manages the Indian rupee (INR) against a basket of currencies, primarily focusing on the U.S. dollar. The RBI intervenes in the foreign exchange market to smoothen excessive volatility and maintain orderly conditions.Factors Influencing Exchange RatesExchange rates are influenced by a variety of factors, including the supply and demand for currencies in the foreign exchange market. Economic indicators, such as inflation rates, interest rates, trade balances, and political stability, can impact the demand for a currency and consequently affect its exchange rate.Exchange rates are also influenced by market speculation and government interventions, as central banks may adjust interest rates or engage in currency market operations to influence the value of their currency.These factors can be summarized as follows:Supply and Demand: Like any other commodity, the value of a currency is influenced by the forces of supply and demand. If the demand for a currency is high relative to its supply, its value typically increases. Conversely, if the supply of a currency outweighs the demand, its value may decrease.Economic Factors: Economic indicators, such as interest rates, inflation, GDP growth, employment data, and trade balances, can significantly impact exchange rates. Stronger economic performance often attracts foreign investment and boosts demand for a currency, leading to appreciation: Strong economic growth, trade surpluses, and low unemployment rates can contribute to currency appreciation.Interest Rates: Higher interest rates in a country can attract foreign investors seeking better returns, increasing demand for the currency and potentially strengthening its value. At the same time, lower interest rates may discourage foreign investment and lead to currency depreciation.Inflation: Countries with higher inflation rates tend to experience currency depreciation as the purchasing power of the currency diminishes. On the other hand, countries with lower inflation rates may witness currency appreciation.Balance of Trade: A positive balance, with exports exceeding imports, boosts foreign currency reserves, allowing a country to lower interest rates, spur economic growth, and fortify its currency exchange rate.Public Debt: Public debt and its potential inflationary impact, as well as its deterrent effect on foreign investment, can devalue a currency.Current Account Deficit: The current account deficit is interconnected with the balance of trade, and arises when a country's expenses surpass its earnings. A greater current account deficit relative to a trading partner can diminish a country's currency value compared to that partner's currency.Political Stability: Political stability fosters investor confidence, attracts foreign capital, and strengthens a currency.Market Sentiment and Geopolitical Factors: Political stability, geopolitical tensions, and investor confidence are just a few examples of the factors that can affect market sentiment and, consequently, exchange rates. Positive sentiment can lead to currency appreciation, while negative sentiment can result in depreciation.Government Interventions: Governments possess a range of methods to manage their currency exchange rates. These strategies include adjusting interest rates, purchasing or selling foreign currency, influencing lending rates, printing money, and implementing additional measures. These interventions are typically done to maintain stability, support economic objectives, or address extreme fluctuations.Do Exchange Rates Matter When Sending Money Abroad?Yes. Exchange rates matter when sending money abroad. Being aware of exchange rates and seeking favorable rates can help ensure that you, as a sender, maximize the value of your transfer and provide your recipient with the most beneficial outcome.Top reasons why exchange rates matter when sending money abroad include:Value of the Transfer: Exchange rates determine the conversion of one currency to another. When sending money abroad, the exchange rate determines how much of the sender's currency will be converted into the recipient's cash. A favorable exchange rate can result in the recipient receiving more funds, while an unfavorable exchange rate can reduce the value of the transfer.Cost of the Transfer: Exchange rates impact sending money abroad. If the exchange rate is unfavorable, it means that the sender's currency will have a lower value when converted to the recipient's currency. As a result, the sender may need to transfer a larger amount of their currency to achieve the desired value in the recipient's currency, resulting in higher transfer costs.Timing of the Transfer: Exchange rates are subject to fluctuations due to various economic and market factors. The timing of the money transfer can significantly impact the exchange rate obtained. By monitoring exchange rate movements, the sender can choose a favorable time to initiate the transfer and potentially optimize the value of the transfer.Cost Comparisons: Different service providers offer varying exchange rates for currency conversions. Comparing exchange rates among different providers can help the sender find the most favorable rate, allowing for more value to be transferred to the recipient.How to Send Money AbroadSending money abroad involves several steps to ensure a smooth and secure transaction.Research Transfer MethodsThere are different methods for sending money abroad, such as bank transfers, online payment platforms, or remittance services. You can compare fees, exchange rates, and delivery options to choose the most suitable method for your needs.Collect Recipient InformationCollect the necessary information from the recipient, including their full name, contact details, and bank account information. Ensure you have accurate and complete details to avoid any delays or errors in the transfer.Choose a Service ProviderSelect a reputable service provider or institution to facilitate the money transfer. Consider factors such as fees, exchange rates, transfer speeds, and customer reviews when making your choice. Specialized money transfer companies are better than banks or other financial institutions, as they tend to have higher transfer costs, slower transfer speeds, and hidden fees.Initiate the TransferProvide the required information to the service provider, including your details, the recipient's information, and the amount you wish to send. Double-check all details for accuracy before proceeding.Pay for the TransferFollow the instructions provided by the service provider to pay for the transfer. This can usually be done through various methods such as bank transfers, credit/debit cards, or online payment platforms. Ensure you understand the fees and any additional charges associated with the payment.Confirm and Track the TransferAfter initiating the transfer and making the payment, the service provider will provide you with a confirmation or transaction reference number. Keep this information safe and use it to track the progress of the transfer. Most service providers offer tracking options to monitor the transfer's status.Notify the RecipientInform the recipient that you have sent them money and provide any necessary transaction details or reference numbers they may need to receive the funds. Advise them to monitor their account for the incoming transfer.ConclusionUnderstanding international currencies and exchange rates is important for anyone engaging in global transactions. Having a comprehensive knowledge of different currencies and their dynamics will empower you to navigate the complexities of the global economy more effectively.It is advisable to compare the available options before finalizing your decision when sending money overseas. While banks may seem convenient for international transfers, specialized money transfer providers offer superior exchange rates, transparent and affordable fees, and speed. Use the CompareRemit compare tool to view today's best exchange rates when sending money overseas!
In today's globally connected society, sending money abroad has become a routine necessity. Choosing the best international money transfer service is essential, whether you need to support family members, pay for goods and services, or make investments abroad. Finding the ideal selection can be difficult due to the abundance of options.We have carefully selected a list of the 10 best international money transfer services for 2023 and included it in this guide. By offering comprehensive information, evaluations, and comparisons, we hope to assist you in making an informed choice.What is an International Money Transfer?An international wire transfer is a way to electronically transfer money between bank accounts in several countries. The sender must contact their bank to start the transfer and provide the recipient's bank information, including the account number and pertinent codes. The transaction is then completed through an electronic transfer of funds between the two banks.Factors to Consider While Using International Money TransfersExchange Rates: The exchange rate between currencies is crucial when deciding to send money to another country. Look for providers with competitive rates that are close to mid-market pricing. Some businesses also offer real-time or guaranteed rates, which can be useful in volatile markets. Compare rates from various suppliers to guarantee you get the best deal.Fees: The cost of an international money transfer varies by service provider. It usually includes two kinds of fees: the sending fee levied by the sender's bank and the receiving cost levied by the recipient's bank. Furthermore, exchange rates play a significant role in determining the final cost.Transfer Speed: Compare the rates at which different providers perform transfers. Some transfers are processed in minutes, while others may take several business days. Consider your urgency and select a service that can meet your deadline.Transfer Amount: Taking into account how much money you are sending is also crucial. For small transfers, many businesses can help you send money. However, for large sums, it's advisable to choose a company specializing in corporate transfers. Avoid using banks for significant overseas transfers due to their high fees.Reviews: Read user reviews and testimonials to gain insight into other customers' experiences. Consider both positive and negative comments to gain a balanced view of service quality and customer satisfaction.What are the Things to Look for in International Money Transfer Companies?There are some crucial elements to consider while selecting a money transfer company. You can choose a service provider that matches your individual demands and assures a seamless and secure transfer experience by carefully examining these factors. Here are some important things to check for:Reliability and SecurityLook for suppliers who are licensed and regulated in the countries they operate in. Consider their track record, reputation, and security measures in place, such as encryption and two-factor authentication.Competitive Exchange RatesCompare the rates provided by various money transfer companies and look for those that provide competitive rates similar to mid-market pricing.Transparent FeeLook for service providers with a transparent and upfront fee structure and no hidden expenses. Compare the sending and receiving fees, as well as any additional fees that may apply to your particular transfer.Transfer Speed and ConvenienceSome transfers are processed in minutes, while others may take several business days. Determine your level of urgency and select a service that can meet your deadline. In addition, consider the transfer process's comfort, such as ease of use, user-friendly interfaces, and various transfer options (online, mobile app, etc.).NetworkSome companies have vast networks and relationships that enable seamless transfers to a variety of nations. Check to see if the money transfer company covers the precise places you require.Customer ServiceLook for a money transfer provider with dependable and quick customer care. This can be done via phone, email, live chat, or extensive FAQs.ReviewsRead user reviews and testimonials to learn about other customers' experiences. Their feedback can provide information on service quality, dependability, and overall client happiness. Regulatory ComplianceDetermine whether or not the service provider complies with applicable legislation and anti-money laundering procedures. This ensures that they conform to tight norms and legal regulations, providing an additional degree of protection and legality to your transfers.How to Send Money Internationally Using a Money Transfer CompanyHere are the precise steps to follow when sending money abroad via a money transfer service.Sign up for an account online at the business's main website using your name, contact details.Verify your identity. in step two. Depending on how much money you're sending, different companies have varying criteria.Enter your transfer amountProvide your recipient’s name, contact information & their bank details (account number, and branch number or bank identifier code (SWIFT BIC or IBAN).Pay the money transfer company with funds from your bank account.Track the transfer status online or through email.The transaction is finished when the money reaches the receiver's bank account.How to Get the Best Exchange Rates When Sending Money OnlineWhen transferring money online, getting the best exchange rate is critical to maximizing the value of your overseas transfer. Here are some techniques for obtaining a favorable exchange rate:Research and analyze multiple money transfer companies by comparing their currency rates and overall costs, including fees. Use money transfer comparison platforms like CompareRemit or visit providers' websites to ensure an informed decision.Get to know the mid-market rate (the interbank rate or the real exchange rate). Using comparison tools like CompareRemit, compare the mid-market rate to the rate that money transfer services are offering. Find a provider with rates that are as close to the mid-market rate as possible.Exchange rates fluctuate owing to market conditions. Consider timing your transfer when rates are lower, but be aware that predicting exchange rate movements can be challenging. Strike a balance between timing and the urgency of your transfer.Certain money transfer providers offer the option to lock in an exchange rate in advance allowing you to secure a fixed rate for a specific duration, protecting you from potential volatility.Forward contracts are useful for larger transfers or future payments. They enable you to fix the currency rate at the start of the contract, even if the actual transfer occurs later. This provides peace of mind and safeguards you against adverse currency fluctuations over time.10 Best International Money Transfer CompaniesXe Money TransferXe Money Transfer is a well-known brand in the international money transfer industry. It has several services that distinguish it from other businesses in the industry, such as easy currency conversion and same-day money transfers to more than 170 nations across all six continents.Because of its great exchange rates and lack of additional fees for sending money, Xe Money Transfer is quite popular. They are largely an internet business that offers web and mobile platforms that let users manage domestic and international money transfers from any location. On the business website, each user has the option to create a personal account that is accessible and usable around the clock.Their website receives close to 300 million visitors a year, and more than 70 million people have downloaded their app. With such a large customer base, Xe collaborates with more than 200 top worldwide companies, including Apple, Google, Walmart, and Amazon, and in 2015 alone, it enabled the secure and timely transfer of over $74 billion.Xe is regulated by central banks and financial regulatory agencies all over the world.Pros of Xe Money Transfer Offers competitive exchange rates, which are frequently close to the mid-market rate. Zero transfer fees for international money transfersTransparent and offers a secure platform for sending payments. Covers a wide range of currenciesAccessible via Mobile app and web platformCons of Xe Money Transfer Only offers bank-to-bank transfersIt may not be the quickest solution for urgent transfersRestricted service in particular countries or locationsLack additional services such as bill payment or mobile top-upsWiseWith a 4.5 out of 5 Trustpilot rating, Wise, formerly known as TransferWise, is a well regarded and reliable business for international money transfers. With over 16 million customers transmitting a combined amount of about £76.4 through their platform annually in more than 70 countries, they have a sizable customer base.The business has physical locations in 17 different countries. For their services, Wise charges a fee, but it's typically minimal, with some transfer fees as low as $1 plus a 1% commission on the overall transfer amount. It is a decent option for modest transactions because of its low fees.Wise doesn't charge any additional costs that aren't disclosed up front. They provide a variety of ways to send money, including direct bank transfers, debit and credit card payments, bank wire transactions up to several million dollars (or currency equivalents), and Apple Pay.Although Wise offers next-day transfers, they might not be applicable to all transactions, and the recipient could not have instant access to the funds due to their bank's availability.One of Wise's main advantages is that they use the government-established official exchange rate and adjust their own rate in accordance with it. Pros of Wise Transparent and low fees Fast and Efficient transfers (transactions completed in a few hours or even minutes for certain currency corridors)Accepts a wide selection of currenciesCons of Wise Customers must have a bank account in order to initiate transfers There are transfer limits based on the user's location and verification levelNo cash pickup services. WorldRemitOne of the first brands in the global money transfer industry, WorldRemit is currently valued at about $6 billion. WorldRemit has transformed the remittance industry in some regions, such as Asia and Africa, by offering immigrant workers easily accessible and reasonably priced money transfer services.Even though WorldRemit charges significant margins on its currency exchange rates, it is still far less expensive than conventional banks. The regular special offers and online coupons that clients can use to reduce the fees on their overall transfer amount are another area where WorldRemit excels.Online complaints concerning WorldRemit's customer service and how quickly it answers client issues are common when it comes to customer happiness. However, they make up for it by providing affordable charges, simple online resources, and excellent coverage.Pros of WorldRemit Services available in over 150 countriesOffers a variety of transfer methods, including bank transfers, cash pickups, mobile wallet transfers, and airtime top-ups.Easy-to-use internet platform and mobile app for initiating, tracking, and managing money transfers. Cons of WorldRemitTransfer fees can vary depending on factors such as the amount being transferred, the destination country, and the payment method used.Complaints of delayed verification processInstaremOne of the fintech newcomers to the international money transfer market is Instarem, which prioritizes cutting-edge solutions. Based out of Singapore since 2014, Instarem makes money transfers easy, quick, and reliable for everyone who needs to send or receive money.Instarem has a fantastic mobile app that prioritizes modern design and user experience. They lack true customer assistance and rely on AI to help consumers with their demands, like many contemporary financial businesses. Despite the fact that this is the way to go, many people lament their inability to find timely solutions to their problems.For the majority of its consumers, Instarem can be quite cost-effective. The sending and receiving countries and currencies will determine the fees and exchange rates, although generally speaking, there are no transfer fees.Instarem also offers a rewards program: for signing up, introducing other users, and donating money, customers can accrue reward points. Reward points can then be redeemed and added to the transfer amount.Pros of InstaremCharges affordable and transparent transfer fees Transfers that are quick and efficient.Supports transfers to many nations throughout the worldCons of InstaremOnly allows bank-to-bank transfersAccess restricted in some countries.Limited additional services (bill payments or mobile top-ups not available)RemitlyRemitly, a Seattle, Washington-based company, was established to provide quick international money transfers. It mostly handles remittances—sending money to friends and family who live abroad. Remitly has its own physical facilities in almost 60 countries and operates through a vast network of over 30,000 institutions all around the world. This makes sending and receiving money in a secure, dependable manner incredibly handy for everyone who utilizes them.Since Remitly isn't designed for large transfers, it is only natural that it doesn't provide hedging alternatives or professional dealers. Personal users that send little sums of money internationally make up their customer base. Over 70 different currencies are available for users to pick from, and transfers may be completed in a matter of minutes.The amazing thing about Remitly is that you can accrue perks as you utilize them more frequently. They have a fantastic referral scheme, and you can enable a greater limitation on your maximum sending capacity if you supply more official documentation.The amount of money you're transferring, the speed of the transfer, the payment method you'll use, and the destination country are all factors that affect Remitly's transfer rates.Pros of Remitly Provide rapid transfers with some transactions being processed in as little as a few minutes.Remitly's conversion rates are usually competitiveCovers a huge number of nationsMultiple payment and receiving optionsCons of Remitly Transfer Fees vary depending on the country and quantity transferred.Imposes limits on transfer amountPanda RemitPanda Remit is a digital remittance provider that specializes in money transfers between the UK and China. They provide reasonable exchange rates and cheap costs, making it an appealing option for people and businesses sending money between these two countries.Panda Remit focuses on delivering an easy-to-use internet platform and mobile app for quick and easy transfers. Panda Remit ensures that payments are sent safely and efficiently by emphasizing security and compliance.Additionally, Panda Remit offers real-time transfer notifications via SMS, WeChat, or email to keep consumers updated throughout the procedure. Various delivery alternatives, including a direct deposit to digital wallets, bank cards, or cash pickup, are available for the payment methods of bank transfers, debit cards, and ATM transfers.Customers may effortlessly transfer money overseas thanks to the company's user-friendly PandaRemit mobile app, which offers a 100% satisfaction guarantee.Pros of Panda RemitOffers competitive exchange ratesLow transfer costsA user-friendly web platform that makes it simple to initiate and track transactionsCons of Panda Remit Restricted Coverage and Destination choicesTransfer times may vary based on factors such as the destination country and the banking systems involved. It may not be the quickest solution for time-sensitive transactions.PassToPassTo is an international money transfer service that allows customers to send money to nations all over the world. They provide a variety of transfer options, such as internet transfers, mobile top-ups, bill payments, and digital vouchers.PassTo offers reliable and safe transfers through its trusted network of partners, with an emphasis on user experience and customer satisfaction.The majority of transfers using PassTo are finished in under a minute. There are numerous ways to make a payment, including debit/credit card payments and transfers between bank accounts. It provides a variety of payment options, including bank deposits, mobile wallet credits, airtime top-ups, and cash pickups.PassTo uses cutting-edge security measures to protect transactions and user data, and it is authorized and governed by the Financial Conduct Authority (FCA) in the UK. Depending on the nation, there may be a maximum transfer limit of GBP 3,000 per day, GBP 8,000 per month, and GBP 50,000 per year.Pros of PassToOffers a wide range of transfer options (bank transfers, mobile wallet transfers, and cash pickups). A large network and serves many countries throughout the worldEnhanced security measuresCons of PassToLimited Availability in Some RegionsReports of difficulties contacting customer support or receiving assistance PomeloPomelo is a prominent money transfer firm that offers consumers and businesses globally convenient and secure foreign transfer services. Pomelo seeks to simplify the process of moving money across borders by emphasizing convenience and competitive pricing.Pomelo's user-friendly internet platform is one of its most notable characteristics. The platform offers a simple transaction process, whether you're a first-time user or a seasoned sender.Pomelo prioritizes security, and they use advanced encryption technology to safeguard user data and financial activities. While Pomelo has numerous advantages, certain aspects must be considered. Transfer costs may apply and vary depending on criteria such as transfer amount, destination country, and payment method selected.Pomelo's availability may be limited in some areas. Before selecting Pomelo as your preferred international money transfer company, be sure it functions in the intended location.Pros or Pomelo Offers a user-friendly online platform that allows users to easily initiate and track money transactions. Users can enjoy competitive exchange rates.Places a high priority on the protection of user data and financial transactions.Cons of PomeloVariable transfer fees based on transfer amount, destination country, and payment method used.Coverage may be limited in certain locations or nations.PlacidPlacid Money Transfer is a well-known and trustworthy international money transfer company that enables individuals and organizations to send and receive money across borders. Placid attempts to deliver a smooth experience for its users by emphasizing accessibility, cheap rates, and comprehensive services.Placid Money Transfer's extensive network coverage is one of its most noticeable qualities. The program offers transfers to multiple countries throughout the world, allowing users to send money to a variety of locations. Placid also provides competitive exchange rates, allowing consumers to get the most out of their money transfers. Placid provides a variety of helpful features in addition to its main money transfer services. In some nations, they include cash pickups, mobile wallet transfers, and even home delivery of funds. Such adaptability provides consumers with a variety of options to meet their individual preferences and circumstances.While Placid Money Transfer has various advantages, certain concerns must be considered. Transfer costs may apply and vary depending on criteria such as transfer amount, destination country, and payment method selected. To understand the fees associated with their transactions, users should check the price structure.Furthermore, the availability of Placid's services may vary by region. Before deciding on an international money transfer service, it is a good idea to see if Placid operates in the chosen location.Pros of PlacidPlacid has extensive network coverageProvide competitive exchange ratesHas a variety of transfer alternatives to accommodate a wide range of user requirements. Multiple delivery options: cash pickups, mobile wallet transfers, and even home delivery of money. Cons of Placidits availability in particular places may be limited.Does not provide a broad variety of ancillary services like bill payment or mobile top-ups. SkrillSkrill Money Transfer is a well-known online payment and international money transfer service that enables individuals and organizations to send and receive money from across the world. One of the primary benefits of Skrill Money Transfer is its simplicity. The platform is designed to be simple and easy to use, making it suitable for users of all levels of experience. Users may quickly create an account, add their bank accounts or credit cards, and begin sending money to others all around the world.Skrill Money Transfer also provides competitive exchange rates, guaranteeing that users receive the best possible rates when transferring currencies. This may result in cost savings when compared to traditional banks or other money transfer services. You can compare the top money transfer companies side by side on CompareRemit. Pros of SkrillA user-friendly site that is simple to access and comprehend, making it accessible to users of all skill levels.Offers competitive exchange ratesEnables transfers to over 180 countries, providing extensive global coverage.Cons of SkrillReports of difficulties contacting Skrill's customer service or receiving assistance on time. Limited Payment Options (may not support all local payment methods in every country) Frequently Asked QuestionsHow long does it take to send money internationally?The time it takes to send money internationally varies based on the service provider and the destination country. It can take anywhere from a few minutes to several business days.How safe are international money transfers?Yes, respectable money transfer firms use advanced security methods to safeguard your financial information and assure safe transactions. It is critical to select a reputable and licensed provider.Are there any fees involved with international money transfers?The rates for international money transfers vary depending on the supplier. Transaction costs, exchange rate fees, and receiving fees are all possible. Before initiating a transfer, it is critical to review the pricing structure of each service.Is there a limit to how much money I can send internationally?Yes, there are normally limits on how much money you can send abroad. These restrictions may differ depending on the service provider, the destination country, and local regulations. It is critical to review the particular limits for each provider.ConclusionWhen you want to send money overseas quickly, reliably, and affordably, specialist international money transfer services are a fantastic alternative to banks.While sending money overseas, selecting the correct money transfer service is critical. Make an informed decision by examining factors such as exchange rates, costs, transfer speed, security, and customer service. Compare multiple service providers to find the ideal alternative that provides competitive pricing, low fees, and a flawless user experience. We recommend that you visit CompareRemit to make the process of comparing money transfer services easier. Don't settle for subpar rates or high fees.Use CompareRemit today to find the best international money transfer service for your needs!
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