| Monday, August 31st, 2015

Repatriation of salary

Guide for repatriating salary or bonuses from overseas

What do you do if you receive a bonus payment or company shares in US dollars when really you need it in pounds? Also, what about when you buy shares in companies abroad and decide it's time to cash them in, how do you get them transferred to the right currency? When it comes to repatriation of salary, the amount you get is going to depend on the exchange rate between the currency you earn in and where you’d like to deposit it. Here is some advice on how to transfer your money internationally and get the best deal.

Shop around for the best rate

The rate will affect the amount you get and not all rates are created the same. Companies that change currencies will take a cut for themselves; that's how they make their money. Therefore, have a look around money transfer companies such as those listed on FXcompared that can move large sums of money from a bank account in one country to an account another and see who offers the best rate.

Set a time to transfer money

The other issue with exchange rates is that they often fluctuate according to economic conditions and other factors at the time. You may find that when it comes to transferring your bonus, the rate might not work in your favour and you will get less money than if you had been able to transfer weeks or months before. To avoid this predicament, and if you are expecting to receive a bonus or are planning to cash in some shares, book to get your money changed in advance. Through some companies you can do this up to a year in advance by purchasing a forward contract. By booking your transfer in advance you will know exactly what rate you will get in the future and could potentially secure a better one if you book at the right time.

Arrange for your employer to transfer through a company

While you may be tempted to gather money in a bank account in the country where you are working and then transfer it from there, it may not be the easiest way. What will save you some time is if you arrange for your employer to transfer the money through a currency exchange firm. That way, whenever your salary or bonus comes through, then another company can take care of it for you.

Look at protection options

Another option to consider if you are expecting a bonus is whether there are protection options available. It's difficult to predict how rates are going to move in the future so when you look to lock into a forward contract, you never quite know whether you will profit from this in the long run or not. When you see a rate that doesn't seem that great but you aren't sure if it will drop lower in the future you may feel tempted to lock in at this point, but there is another option too. What you could do is lock into a worst case scenario option, which will allow you protection against a fall in rates but let you see the benefits of the money you will transfer if it moves in your favour.

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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.