Are you considering using Caxton FX for your next money transfer? This article is designed to help you make the decision on which option to use for your money transfer.
Do you know Caxton FX Money Transfer?
Caxton FX facilitates money transfers to 23 different countries around the world. Transfers can be carried out online or over the phone, and transfers are up to 20,000 at a time. The company is registered in the UK and regulated by the Financial Conduct Authority.
What is the best way to send money overseas?
If you have family overseas, you might want to send money over to them on a regular basis or it may be a one-off to help support someone who is short of funds on holiday.
There are many different companies out there who offer money transfer options, including Caxton FX.
It can be difficult to know where to start when looking for the most favourable option.
Each company offers something different, and the option you choose should be the one most suited to your individual needs, and circumstances.
This guide should help you make that all-important decision.
What options are available to you?
There are three standard options for sending money overseas. These are the bank/building society, foreign exchange brokers and high street transfer firms.
They all have different benefits, and the factors you should take into consideration are how long the transfer will take, what amount you will be able to send, and the total cost of sending the money.
Banks are the safest option, but they also have some downsides.
The cost of using Caxton FX
When considering companies like Caxton FX for money transfer, you need to be aware of the fees and total costs of sending your money overseas.
You should work out what currency you will get back, and any other fees, together with the exchange rate.
The exchange rate is ever changing, so make sure you take a good deal when you see it!
Companies like Caxton FX may also charge fees for receiving the payment, although you can cover these.
Keep your receipts!
Whatever option you go for, you should make sure you keep any receipts, confirmation etc, including the amount you are sending, the destination and the expected turnaround.
If anything goes wrong, you will be expected to be able to prove your transfer and this should be in writing where possible.
Keep your paperwork safe for your future needs.
Is it safe to use Caxton FX?
Unlike our everyday banking, which is protected by the Financial Services Compensation Scheme (FSCS), companies like Caxton FX do not have the same protection.
If the company goes bust, you have no protection and your money transfer will be lost.
The Financial Conduct Authority (FCA) is there to protect you in many ways though, so you should check that Caxton FX are approved before using them.
Is Your Current Account a Better Option?
You don’t need to use a foreign exchange firm though, you can choose to use your UK bank or building society.
The good thing is that you know them, you know how they operate and you may even be able to get advice and support to make your overseas payment.
Banks are also safer and more secure, giving you peace of mind that if the worst happens, you are protected.
The main advantages to banks are that it is easy to arrange the payments, you can receive guidance through the process, they are accessible via the high street and they are the most safe and secure option.
However, with the good, must come the bad – and the downside to banks is that the process is generally much slower.
It may take up to 6 days to transfer payments, not ideal if you are in a rush!
Can you save money if you make regular payments?
UK banks often have relationships with other banks overseas, and they make be able to come to an arrangement if you are making regular payments.
For example, if you are paying bills on a holiday home or sending regular payments to a family member. You may end up benefiting from lower exchange rates and fees.
It can be cost effective to come to an arrangement with your bank when making regular payments.
Why choose High Street Firms?
A high street foreign exchange firm might be another alternative.
It can be easier to do an instant transfer with this option, so it is ideal if you want the recipient to gain access to the money quickly.
It is easy to set the payment up and you usually won’t require any ID.
The downside is that it may not be as safe, so if this is your main concern, you may prefer the bank option.
Brokers like Caxton FX
You also have the option of brokers like Caxton FX, who are there to help when you need to send money overseas.
Brokers specialise in this, so they tend to offer the best exchange rates out of all three options.
The process can be super fast too, often with payment on the same day. However, the set up process may be a little long.
Not every broker is covered by the FSCS, so this is something to be aware of, as you want your money to be protected.
Why you need to compare
In order to get the best deal, you must compare the market, and you should use as many comparison sites as possible.
Use as much detail as you can to make an accurate choice based on your needs – and make sure you use a company authorised by the FCA.
Watch for scams, and do your research before you decide on the most suitable option.