There will come a time when you need to transfer your hard earned money into Australian dollars. We all want more for our money, more interest from the banks, more value for properties, the list goes on…
There are ways to make your money travel further, it’s simply knowing what to do and who to use. Starting from today you can avoid the uncompetitive exchange rates offered by the banks. The high sending fees that leave a sour taste in your mouth. Yes that’s right, you can beat the banks by up to 5% and receive the amount you deserve. Here’s how to do it……
Step 1 – Quick Research – To understand if you’re getting a great rate, you first need an idea of how the exchange process works. We have used our creative skills and provided a basic but pretty image below.
Step 2 – Banks Vs Brokers – People choose brokers because they offer better exchange rates. In our experience a foreign exchange broker is willing to go the extra mile for your business. Sending fees are generally waived and the exchange rate can be negotiated (within limits).
Step 3 – Choosing A Broker – This is probably the hardest part of the process. The foreign exchange market is competitive, there are many companies to choose from. So make sure you don’t jump into bed with the first broker you speak to. Do some research, read a review or two, this way you know who you’re dealing with.
Step 4 – Get A Quote – You can get a quote online in minutes, but don’t be afraid to call someone and speak to them. They will explain the process and answer any questions you have. The amount you send will effect the exchange rate offered. It is safe to say the formula below sums up the quote process well.
Larger amounts = Smaller margins taken = better exchange rates
Step 5 – Understand the Fees – As mentioned in step 2 most companies waive the sending fee. So your attention should be on the receiving fee, this is charged by the receiving bank not the broker. This ranges between $15-$30 AUD when sending money to Australia. On the safe side, simply ask the question – Are there any other fees involved?
Step 6 – Open your account – The process to open an exchange account is really simple, you can do this in minutes online or over the phone.
Step 7 – Lock in your exchange rate – You can book your exchange rate over the phone or online. We prefer booking deals over the phone, but whatever works for you.
Step 8 – Transfer the outstanding amount– After your exchange rate is confirmed. You will need to transfer any funds you owe into your FX account. The sooner you do this the better, you run the risk of breaching your contract if you don’t.
Step 9 – Transfer Time – Speed up the process by linking your Australian bank account. This means you can pay straight into your account. If don’t have a bank account, go to our banking page to set this up. The funds should be in your account within 2-3 working days. Enjoy!
If you need help choosing a currency broker, or you want to compare exchange rates. Go to the currency exchange page via the “compare fx rates” button below. Feel free to contact us if you have any questions.