Are you considering using The Currency Cloud to do a money transfer? This article will provide you with some useful information on this money transfer company, and whether it is the right choice for you.
Who are Currency Cloud Money Transfer?
Currency Cloud offers a platform for companies to facilitate money transfers around the world. Customers can collect, pay and convert transactions easily and businesses can now connect with customers around the world even if they don’t have a bank account there.
Why you might want to send money overseas
There are all kinds of reasons why you may want to send money overseas. Your family may live overseas, while you work, and you may need to send money regularly to support them.
It may be that a friend or family member is abroad and needs some emergency cash for some reason.
There is a lot of competition out there when it comes to money exchange, a lot of different companies want you to use them, as this is how they make money. This makes it difficult to know which way to turn, as there is such a lot of conflicting information out there.
You will get a different deal from each company, depending on how much you want to send and how quickly you want the recipient to receive it.
We hope this guide will help you understand a bit more about your options, so you can determine which is the right choice for you.
The Three Main Options
When transferring money overseas, there are three main options worth considering. The bank/building society can be a convenient option, and this is one which is often overlooked. There is also foreign exchange brokers and high street transfer firms.
There are three main considerations – how much you are able to send, how quickly it will arrive, and whether you are making frequent payments,
When you have these points determined, you will be in a better position to decide which option to go for.
Understand the Hidden Costs of The Currency Cloud
There are potential fees, interest and exchange rates which can make the process of finding a suitable company extremely confusing. Even if you opt for The Currency Cloud, there are hidden costs you should be aware of.
The best thing to do is to find out how much currency you will get for your pounds, then you will be in a better position to determine the best deals. You also want to look at any add-ons, and fees the company may charge you.
Exchange rates for companies like The Currency Cloud can change regularly, so if you find a great deal, it is worth snapping it up, as it may not be as appealing the next day.
It is worth also bearing in mind that some companies charge receiver fees, which means that the person on the receiving end, may also be liable to make a payment. You can pick up the charge for this, but it is something you need to consider.
Proof of Purchase
With any decision like this, it is important that you keep proof of any purchase you make, so whatever option you go for, you should keep any receipts/confirmation of details etc, incase you need it in the future.
The confirmation will include: the value of the exchange, the expected delivery date and any interest and fees you will receive.
Don’t rely on phone calls alone, make sure everything is backed up on email, letter, receipt or whatever other method that gives you written confirmation.
Your receipts will come in handy, if for any reason, the transfer goes wrong or the details are incorrect.
Is The Currency Cloud Reputable?
If you use a bank or building society, you are protected by the Financial Services Compensation Scheme (FSCS), which means that if they go bust, you don’t lose your money.
This is not the same with foreign exchange firms like The Currency Cloud. The security does not exist, unfortunately, although they may be authorised by the Financial Conduct Authority (FCA), which will give you some level of security.
Make sure you use an FCA authorised company for your money transfer.
The Currency Cloud or the Bank?
Do you really need to use a foreign exchange firm when you have a UK bank or building society? Surely they offer this too?
The answer is no, you don’t need to use a foreign exchange firm, you can definitely use your bank, and you’ll benefit from the extra protection they can provide. It is safer, and more convenient to use the bank, and the bonus is you will already be set up with them.
The downside is that exchange rates are generally lower, and it can take longer to send the money. In some cases, it may take 6 days, where as foreign exchange firms can often turn it around in 24 hours.
Regular Payments and Reduced Fees
If you intend to send money regularly overseas, you may benefit from lower fees. Speak to your bank, and see if they can offer anything for regular payments.
Some banks have branches overseas and others have relationships with banks, and they may be able to strike a deal with you if you are looking to send regular payments.
High Street Firms vs The Currency Cloud
If you don’t want to use your bank, you may want to use a high street foreign exchange firm.
There are usually high street branches all over the place, including in the Post Office and you get the added bonus of speaking to someone in-person!
An advantage of this form of money exchange is the ‘instant transfers’, which means the recipient doesn’t need to wait for days to get their money. It is particularly beneficial if the money is urgent!
It is easy to set this up too, as you don’t need an account and usually, you won’t require ID either. The money can be transferred quickly, without any hassle.
These firms can also get the deed done very quickly, great if your family member quickly needs some instant cash to carry on their worldly travels.
Fees and overall costs are extremely variable though, and you may up paying more for smaller transfers, so this is something to be aware of.
It is also not as safe as it would be if you used your bank or building society.
Brokers like The Currency Cloud
You may alternatively want to try a broker like The Currency Cloud to send your money overseas. This is the ideal option for sending higher sums of money.
You also get the added bonus of great exchange rates, and a fast process. With the money often received within the same day.
It is best if you do this for higher sums, as otherwise you may pay large fees.
This is not the safest options, as many brokers are not covered by the FSCS.
Comparing the market
You should always compare the market to find the best option, and use as many sources as possible.
The more detailed you are with your search, the better! Also, make sure the firm, bank or broker you choose is authorised by the FCA.
Make sure it is a legitimate company, don’t fall for any scams.
If the deal is too good to be true, then assume it is, go back to comparing and contrasting this deal with others.
The main points to consider are whether they can handle the payments, the time it will take to receive the money, and the fees.