Every day, so many people in Nigeria make an international money transfer. Could it be an easy task to send money to anyone overseas? Well, it depends on the wire transfer you use. If you don’t take good care of it, it may cost you far more than you expected, as many people are oblivious to the hidden fees. Let’s find out more about how to make the process safe and cost effective.
For sending money overseas, you will have to bear two types of costs: the currency conversion cost and the cost to transfer the fund to your desired country. The vendor can be an FX Brokerage, a bank or a money transfer company. The thing is that they don’t convert one currency to the other on the basis of the inter-bank rate. Instead, they’ve created the exchange at a lower rate, making a great deal of profit. Provided below are tips that will help you go through the process efficiently.
FX (Foreign Exchange) Brokers
In the role of intermediaries, foreign exchange brokers deal with many banks and offer the best foreign exchange rates. While their primary role would be to convert currencies, they can also allow you to send money abroad at reasonable cost.
Even though this option is affordable, especially if you want to transfer over $5000 to the USA, the process usually takes longer to complete due to the amount. You can choose this approach if you don’t need to send your funds abroad urgently.
Banks are the most common way of international money transfers worldwide. However, the simple fact is that banks are known for charging hidden fees for funds transfers, and the fees will continue to increase depending on the amount of money that needs to be transferred. But the main benefit of using a bank to send money abroad is that always the banks are seen as the safest strategy for transferring money abroad.
So, in case you’ll be considering to wire money by the use of a bank, ensure that you choose a bank that charges the lowest amount for the money transfers.
Money Transfer Providers
If you want to send below $5,000 to someone abroad, money transfer providers is likely the most suitable choice. They may be the best in terms of cost of transfers. Typically, they offer bank-to-bank transfers. There are also some providers who will let you receive money at cash pick-up branches.
Online Money Transfer
These service providers let you send money abroad by charging a minor fee. Usually, it will cost just $1 extra for the transfer. Some providers don’t even charge this fee, but this is not the case in Nigeria where banks can charge any amount they want.
These providers are regulated by the financial authorities of the same country they are employed in. Another example, are the Money Gram and Western Union in Nigeria, which is regulated by CBN. They’ll use their state-of-the-art financial technology for sending and receiving funds. So, you can trust them even when your eyes are closed.
With an online money transfer, you don’t need to visit any financial office. All that you need to make the money transfer is a computer and a fast speed internet connection.
As you have read sending money abroad has now become a very simple and smooth task in Nigeria- you don’t have to do any paperwork. All you need to do is just choose the type of money transfer, enter your name and also the receiver’s name/account number, and within minutes the money will be transferred.
In conclusion, before you make your choice and choose any of the three Money Transfer services mentioned above, do your homework and also do a comparison collectively. You can choose the one offering best services at the smallest cost.