To get the best currency exchange rate, comparing money transfer providers is key. But doing this yourself can take a long time, so using a money transfer comparison tool can show you the best exchange rates.
At FXcompared, you can instantly compare exchange rates and fees for the most reliable money transfer providers worldwide, showing you the best possible option for your specific transfer. This results in up to 90% savings on fees and charges versus using your bank.
In this guide, you’ll find everything you need to know about foreign exchange rates and sending money abroad, including currency pairs, top money transfer providers and a full explanation of how exchange rates affect your money transfer. You can also find the best exchange rates live, with the pros and cons of the money transfer providers here at FXcompared.
Here are our guides to compare forex rates for some of the most popular currency pairs. Click on the links to find out more about the rates, as well as crucial information about property, moving abroad and trading internationally.
Currency exchange rates refer to the value that one nation’s currency has when described in relation to another nation's currency.
The quotation of one different currency against another is known as a currency pair, with some of the most popular pairs including the euro, the British pound, the US dollar and the Japanese yen. For example, one of the most popular currency pairings is the Euro and US dollar, with large numbers of trades taking place between the currencies daily.
The standard, baseline exchange rate for currency pairs is known as the mid-market rate. This is the rate that banks use to exchange money between each other.
However, money transfer providers will often add an additional markup fee on top of this rate when you use them to send money abroad.
The cost of sending money abroad depends on two factors:
Money transfer providers that have low/no fees will usually have a markup on the mid-market exchange rate. On the other hand, money transfer providers that do charge a fee will often have better exchange rates.
This is why you need to consider both exchange rate and fees together when you are evaluating money transfer providers to ensure you are getting the best possible price for your money transfer.
FXcompared has a number of tools to help you find the latest exchange rates between currencies, including our currency converter. Using these tools, you can assess the current mid-market rate and also see whether your currency has been trending upwards or downwards in value over time.
Unfortunately, there is no way to know for certain when exchange rates will go up or down, as factors relating to the relevant country’s economy, as well as supply and demand, will normally cause fluctuations in foreign exchange rates. Interest rates and inflation are large contributors to this, and foreign exchange rates are constantly changing.
Keeping up to date with the latest news for your chosen currency pairs and seeing what the latest exchange rates and forecasts for those currencies can help to keep you better informed.
To make an international business payment, you should consider the options available to avoid overpaying. Businesses may need to send money abroad for all kinds of reasons, such as paying foreign suppliers, partners and freelancers that work abroad, setting up new branches or investing in other businesses overseas.
If your company is regularly sending large amounts of money overseas, the exchange rate becomes even more important. If currency values fluctuate and the exchange rate suddenly becomes unfavourable, your business could take a financial hit when you send your next regular payment.
Thankfully, a number of currency hedging solutions can help businesses offset the risk posed by fluctuating exchange rates. We talk more about this in our guide to international payments for businesses here.
The cost to send money internationally is affected by the exchange rate offered by a broker, but it is important to compare total cost. Our comparison tool examines broker fees in addition to exchange rate comparison.
Sending money abroad is made simple with FXcompared. You can compare transfer fees and foreign exchange rates to save up to 90% on fees and charges versus using your bank when sending money overseas. Compare providers and save money now.
If you are sending a larger amount of money, even a tiny, fractional change to the exchange rate can make a huge difference to the amount charged to send money abroad.
Money transfer providers tend to offer discounted markups on exchange rates for larger transfers. The best way to compare and contrast broker exchange rates is by using FXcompared.
The base fx rate changes based on a number of factors, including inflation, rising interest rates, political or economic instability and changing markets. Money transfer providers can also opt to change their pricing structure depending on their business needs.
Banks often have far worse foreign exchange rates than those offered by money transfer specialists such as Wise, OFX or Currencies Direct. You can compare forex rates offered by transfer providers here at FXcompared.
Want more information about sending money abroad? Read our other step-by-step guides below.
Guides
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Currency Analysis Tool - conduct an audit of historical transactions
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FXcompared.com is an fx money comparison site for international money transfer and to compare rates from currency brokers for sending money abroad. The website and the information provided is for informational purposes only and does not constitute an offer, solicitation or advice on any financial service or transaction. None of the information presented is intended to form the basis for any investment decision, and no specific recommendations are intended. FXC Group Ltd and FX Compared Ltd does not provide any guarantees of any data from third parties listed on this website. FX compared Ltd expressly disclaims any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from (i) any error, omission or inaccuracy in any such information or (ii) any action resulting therefrom.
