Today, sending money overseas can be done in a matter of minutes regardless of where you are. With the development of digital banking and online apps for international money transfers, you can make payments and exchange multiple currencies without ever leaving your home.
If you are not careful, however, you might end up paying more than you should. Fees charged for sending money overseas can be high. If you are sending money from Australia, it is worth investigating various providers to make sure you get the best deal.
How to choose a forex provider:
Before you choose a forex broker, you should figure out what your needs and goals are. There are many factors worth considering. One factor that is often overlooked is the benefit of using a local Australian forex broker for your Australian money transfers.
Why use an Australian forex broker?
Many large, multinational, forex brokers are based in the USA, which introduces a frustrating and large time difference. This can prove more than a simple inconvenience if something goes wrong, as you will not be able to resolve issues in real-time. The resulting delays can also have costly knock-on effects, like bookings being cancelled and deposits lost.
Having someone local who you can get on the phone with can make a huge difference to your peace of mind.
Your forex broker should always meet these standards:
- Ensure your brokers are fully licenced and registered
Before you give a broker any money, you should ensure they are fully licenced and registered with the correct regulatory institutions. A professional-looking website does not always translate to regulation with the relevant authorities – so it’s best to get the registration number and do your research. You don’t want to take any chances when it comes to your finances.
Australian forex brokers should have an Australian Financial Services Licence (AFSL) issued by ASIC to deal in foreign exchange and be registered with the Financial Conduct Authority (FCA) as an authorised payment institution.
Furthermore, any online portal should also use Secure Socket Layer (SSL) 128-bit encryption to protect your transaction details. This 128-bit encryption is the latest and strongest data encryption technique commercially available for securing information between you and the broker.
- Ensure your forex brokers offer a range of services
You ideally want to use an international payment specialist that provides access to a wide range of currency tools in addition to offering simple transfers from point A to point B.
Exchange rates fluctuate constantly, sometimes by 2% or 3% in a single day. Keeping an eye on the rate can be time-consuming and confusing if you’re not familiar with the currency market. Some forex providers will monitor exchange rates on your behalf and keep you informed of the latest developments so you can make your transfer at the optimal time.
You preferably want to work with a provider who offers services related to stop-loss, limit orders and forward contracts. Forward contracts can be a particularly good hedging tool when looking at currency pairs. The interest rate differential between two currencies means that forward points can be assigned when booking it in advance. As such, you can book a transfer up to a year in advance, better than what the spot rate is that day.
- Consider the customer service
Forex trading occurs 24 hours a day, so customer support should preferably be available at any time. You’ll also want to make sure that the forex specialist offers direct access to the customer service team (of real people) so that you don’t get stuck talking to a chatbot or receiving automated email replies when you have a business-critical query.
Many larger forex companies have almost non-existent customer support and have thousands of clients left with problems if their account gets closed without warning or their money does not arrive, and they have no one to turn to.
A quick call to a broker can give you an idea of the type of customer service they provide and average wait times. However, sometimes the forex broker you deal with will be helpful and efficient during the account opening process but will then offer terrible after-sales support. Check reviews online and testimonials from clients to make sure the company has a long-standing track record of great, personalised customer service.
Make the best decision when sending money oversea
Whether you want to send money to South Africa from Australia, send funds to the UK, or anything in between, at the end of the day, you want your money transfers to be done at the best possible rate and as quickly as possible. Working with an expert can ease stress levels and save you money in the short- and long-term.
Sable International is known first and foremost for its incredible customer support, with over 97% of customers on reviews.io recommending the company. Sable International has offices in Australia and can help with all your forex needs quickly and efficiently.
We are based in Australia and offer a full suite of foreign exchange services to suit your needs. For a free forex consultation, call us at +613 (0) 8651 4500 or email us on [email protected] to get started.