Are you considering using Kapook to do a money transfer? Read on to find out more information about Kapook and find out if they are the right company for you.

Do you know Kapook Money Transfer?

Kapook Money Transfers allows customers to send money to Europe and Thailand within one business day. The company as established in 2009 and expanded its UK operations to also include a service to Europe.

How do you send Money Overseas

If you have family overseas or if you have a holiday home, you might need to make overseas payments.

There are many different businesses competing for your business when it comes to sending money overseas, including money transfer firms like Kapook.

It can be confusing to know where to turn when exchanging money.

Your choice will depend on how much you are looking to send, and how quickly you need to send it.

This step by step guide should enable you to make the right choice to suit your own individual circumstances.

The Three Options for Money Transfer

There are three options when it comes to money transfer. These are: bank/building society, high street firms and foreign exchange brokers.

The choice you opt for will depend on whether you need to send the money quickly, the amount you want to send and the total cost, including charges and fees.

High street banks are the most reliable option, and the safest.

The cost of using Kapook

If you are considering using Kapook, you should consider the potential fees, interest rates and exchange rates.

The first thing to do is to find out what you will get for your money. You will need to consider additional fees, and add-ons.

As Kapook’s foreign exchange rates is subject to change, you should check this first thing and on a daily basis. If the exchange rate looks favourable, snap it up, as it might be different tomorrow!

There may be receiving fees, as well as sending fees, so this is something to be aware of.

Ask for confirmation

When you have made your decision, you should ask the company for confirmation, including the amount being sent and the timeframe, as well as the destination.

You should get this in writing, so you can refer to it at a later date if need be.

Make sure you keep all documentation and receipts, as you may need to use this in the future if anything goes wrong with the transfer.

Is it safe to use Kapook?

When we use the bank, we are covered by the Financial Services Compensation Scheme (FSCS), which means that if the bank goes bust, you are protected.

There is no such protection with foreign exchange firms like Kapook. If they go bust, so does your money!

The Financial Conduct Authority (FCA) commands that these companies follow certain regulations though.

The best advice is to use an FCA approved foreign exchange firms like Kapook if this is the most suitable option for you.

Why use your current account?

If you already have a current account, why use a foreign exchange firm?

The truth is, you don’t need to. You can send money easily through your bank or building society. This is a safe option, and it can be more convenient. You also know your bank and their processes.

If you use your own bank it can be quick to arrange, and you get guidance from the bank. You also have peace of mind that your money is secure.

The problem with using the bank though, is that the exchange rates are not as favourable. Banks can also be a bit slow when it comes to processing times. It can take as much as 6 working days, while with exchange firms, it can be done on the same day.

Best option for regular payments

If you are making regular payments, you may want to discuss this with your bank, and find out if you can get any better exchange rates or lower fees. There can often be allowances made if you plan to send money regularly. For instance, if you have a holiday home and need to make regular payments overseas.

You should have an account in your name in both the UK and the country you plan to make payments. You may then be able to get reduced fees and lower costs.

Should you use High Street Firms?

Another option to consider is a high street foreign exchange firm.

There are an abundance of high street branches where you can discuss with someone in-person. If you prefer to deal with someone directly, as opposed to online, this may be the best option.

With high street firms, you can use a range of services, including ‘instant transfers’ which go directly to the recipient’s bank account.

It is also relatively easy to set this up, and you may not even need a high street foreign exchange account, especially if it is a small amount.

It is an ideal option for quick transfers, and a lot faster than using the bank.

High street firms may end up being more costly though, so this is something to check first before you make a decision.

The exchange rate also fluctuates, so this is something to be aware of. Make a decision quickly if you find a good exchange rate.

It is also not as safe as using the banks.

Using a broker like Kapook

Your other option is to use a broker like Kapook to send money overseas, and this is particularly beneficial for high values.

You would usually get the best exchange rates through a broker and you can expect the process to be quick, with money transferred on the same day in most cases.

The problem is that it can take longer to set it up, as you will need to register an account. Another issue is that brokers are not covered by the FSCS, so it may not be the safest option.

Compare the market

Prior to make your decision, you should compare the market to find the most viable option to suit your circumstances.

Don’t just use one comparison site though, use a mix to get the best option.

Make sure the option you choose is authorised by the FCA and be aware of scams. If the deal seems to be too favourable, it probably is!

The things to consider are how much you can send, how long it is will take and the total cost.

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About the author

Scott Nelson

Scott Nelson is a financial services expert, with over 10 years’ experience in the industry, including 6 years in FCA regulated companies. Read more
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