Among money transfer services we count banks and old traditional operators. We tend to think that banks are safe or at least people trust their banks. Old traditional operators such as western union and moneygram are also trusted by people. Both organizations have so big buildings in the main cities in the world that people trust them. Indeed they have money so they build buildings so they are trusted.
They are stealing some money from you so they get money so they buy buildings so they are trusted. And why are they stealing money so easily? Because you trust them.
Sorry I just started saying that we cannot trust banks and old traditional services. The question now is can we trust the new money transfer services such as Worldremit and Transferwise?
New money transfer services are technically safe
They use new technologies. New technologies used by new money transfer services are so technically safe that there is no risk. Moreover how could we think there is any risk as if you are not happy with the money transfer they simply reimburse you? Indeed the most important for new money transfer services is to get new customers. They need a happy customer to refer to other customers. So they are always nice with you. Their systems are great. Their rates are cheaper than other services because they need to gain your trust.
New money transfer services are stealing from you too
They need to gain your trust and they need you to transfer large amounts of money for them to make money. In order to gain trust they show transparency. Sometimes you can show some transparency and not be transparent at the same time. It’s simple. You only have to hide some fees and tell everybody that you are transparent. You can even say that there are hidden fees because of a technical need…
At the end it’s better to use new money transfer services but they try to steal from you too. Still they remain very safe because the service is technically working well and they never steal your money. They just steal some fees thanks to the hidden fees they can put in the exchange rates.
Money transfer services are a new service that we usually name fintech for the abbreviation of finance and technology. New technologies allow small companies to compete with the banks. The new money transfer services drive the cost down so much that it costs 10 times less than a bank. And it’s efficient because the current cost of sending money abroad is around $34 billion and dividing it by 10 would help many countries receiving more money and accelerating their development. The questions are what are those money transfer services and how to find them, and also what are the best money transfer operators to send large amounts abroad, if there is a difference?
What are money transfer services?
Money transfer services are multiplying those days. In 2016 there has been officially 2 new money transfer suppliers per week. All of them are active, work well and provide better rates than banks. Expats and students abroad are the ones using them the most. People living abroad are the ones targeted by money transfer services because they have this online spirit. In the past people living abroad were going to a Western Union or Moneygram office. Now there are more than 400 offices like that. All different brands.
In the present and in the future people living abroad are going to surf on the web. They simply use a money transfer comparison to find the best way to send money abroad. Using a money transfer comparison service is going to provide you an overview of all the money transfer services and their rates in real-time. Indeed exchange rates that are applied are changing every minute because it’s online and the mid-market exchange rate also changes every minute.
What are the best money transfer services for big amounts abroad?
Let’s say I’m in the US and I come from India. I want to send a large amount of United States Dollars back home in India. How do I do? Do I use my bank? No. Of course not. Banks are going to charge you 3% minimum. You can use a money transfer service. Which one?
I would say that there is no big answer but there is a way to find the answer in real time: money transfer comparison services. You’re going to have an overview on the market and there are good chances that you find a broker. For big and large amounts brokers are usually the cheapest solutions. The easiest services are usually the online money transfer operators and brokers are also online but they will request a phone call for verifying your identity. And they will get a very good rate because they can access the market in real-time. Still, a good rate will be around 1% for a very big amount.
Money transfer services are new and they are multiplying. It’s a good opportunity for financial services to become cheaper. Take it using a comparison service for money transfers.