[Sponsored content] When it comes to sending money internationally, it seems natural to go through readily available options, like your bank, or kiosks at the airport. The problem with those options is that you end up paying high transaction fees and get a bad deal on the exchange rate on top of that. At OFX, we want you to be aware of market rates when making a global money transfer. So, what is the ‘market rate,’ and how does it affect your transfer?
Here’s a quick 101.
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The market rate, also known as the interbank rate, is the rate at which large banking groups exchange currencies between themselves and should be used as a benchmark by consumers. In other words, all foreign exchange providers add a margin to that wholesale rate, and your challenge is to keep that margin to a minimum. For instance, for a transfer of $20,000 USD to EUR with a standard bank rate, you would receive about €17,260. The same transaction with OFX would give you €17,720, a €460 difference*.
Significant saving, right?
So how do I make sure I’m not being overcharged?
It might seem easier to use your bank to make a transfer, but the smart thing to do is to shop around for an FX specialist that takes a smaller margin. At OFX, we combine competitive rates with the best digital experience and 24/7 human expertise over the phone, so you can live and work globally with confidence.
*Source: Exchange rates are based on a single transfer of $20,000 USD to EUR from the live conversion rate on ofx.com/en-us/exchange-rates on 30/06/2020.
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