If you are considering using Tonio for money transfer purposes, this article will help you decide what to do and whether it is the right choice for you.
Who are Tonio Money Transfer?
Tonio money transfers can be done online by filling in a transfer form and competing the payment. The company was founded in 2004 and ease authorized in the UK. Tonio facilitates transfers to Great Britain and Poland and currently has more than 80,000 clients.
Can you send money overseas?
There are all kinds of reasons why you might want to send money overseas, including for family, a holiday home or to pay overseas bills.
You’ll find that there are a lot of options available to you when you want to transfer money, including banks/building societies, and money transfer firms like Tonio.
It is no wonder that sending money overseas can be confusing; who do you choose, and why?
There are various aspects to take into consideration, including how much you are sending, and the frequency. You will need to select an option that caters for your needs.
Take a look at our guide to help you figure out which options is best for you.
The three main options
There are basically three options to choose from when selecting an option for transferring money overseas; bank/building society, foreign exchange brokers and high street transfer firms.
There are good and bad point to each of these, but your main considerations should be that they can deal with the value of money you want to send, how quickly they can send it, and what the charges will be.
High street banks are usually the most convenient and safest way to send money, especially if you want to send recurring payments.
If you choose to use a company like Tonio, you should be aware that there may be hidden fees, interest and exchange rates, which you might not have been aware of.
Conduct a search to get an understanding of how much bang you get for your buck. Or in other words, how much foreign currency you get for your pounds. Then you should look at other add-ons, such as add-ons and fees.
It is worth remembering that Tonio’s foreign exchange can change within just a day, so the deal you get today, may not be the same tomorrow. There may also be sending fees at the receiver end. You can cover these if the other person isn’t able to.
Make sure you get confirmation
You should always get confirmation of the money exchange, when you have decided which option to go for. This should be kept in a safe place, incase you need it in the future.
The bank, exchange firm or broker will require permission to deal with your personal details.
You would confirm the value of the payment, destination and when you need it to arrive. Not all options will be able to do a same day or next day transfer, so it is worth bearing this in mind before you choose.
All documentation should be kept in a safe place, including any letters, emails you have received. You may also need to hold onto receipts, just incase you need them in the future.
Is Tonio safe to use?
Everyday banking is covered by the Financial Services Compensation Scheme (FSCS), so you are covered – should the worst happen.
Unfortunately, you don’t have this security with foreign exchange firms like Tonio. Your money transfer disappears if they go bust.
They do need to follow the Financial Conduct Authority (FCA) though, and this increases your safety somewhat.
Make sure you use an FCA approved foreign exchange firm like Tonio, especially when sending money overseas. The more protection you have, the better!
Can you use an alternative to Tonio?
You don’t need to use a foreign exchange firm like Tonio. In fact, it makes more sense to use your own bank or building society, as it’s safer and it’s a lot quicker.
You already have an account too, so you don’t need to go through the process of setting one up. This can be a slow process, which will inevitably cause delays.
There many advantages to using your bank. It is safer, more convenient and you can usually set it up quickly. However, there are some downsides. The exchange rates are lower, so you don’t get as much for your money, and it can take longer for the money to arrive at the other side.
Exchange firms are much quicker. If you need to send money urgently, we would not suggest using your bank.
Are regular payments more cost effective?
If you are planning on sending regular payments, you may be able to get better exchange rates, if you speak to your bank.
Some banks are also based overseas, or they have arrangements with overseas banks, so you may be able to come to an arrangement with them. This is particularly prevalent if you have just bought a holiday home, and you need to pay bills. The bank will know that regular payments will be required.
If you have your name on the account in the UK and the country you are making payments to, you will probably benefit from lower fees and general costs.
Are High Street Firms a good solution?
High street foreign exchange firms offer you another alternative, and there are usually many to choose from in post offices etc. If you prefer an in-person transaction, as opposed to making arrangements only, you may find this the most favourable option.
Some benefits of high street firms are that you can do instant transfers – which is great if the recipient needs the cash quickly!
It is also straightforward to set it all up, and in most cases, you won’t need ID – unless the value is high.
One of the downsides, though, is that the overall fees and costs can end up being quite high, and they can vary depending on where you go. A small transfer could end up being very costly using this option. The exchange rate often changes rapidly in high street foreign exchange firms.
Another point is that it isn’t the safest option, as many are not covered by FSCS.
The bottom line is that although high street firms offer an easy, quick transfer, you will suffer in other ways through the costs they will charge you. If you can wait a bit longer, it may be worth considering your bank instead.
Brokers like Tonio
As a third option, you may want to consider a broker such as Tonio to send money overseas. This is particularly benefit if you are sending larger sums of money, as you may benefit from low fees.
As the Broker is a specialist in exchange rates, they can offer you a better deal.
This is a quick process, you can even sometimes get the money send on the same day. It may take a couple of days to get set up, though.
Not all Brokers are covered by the FSCS, so you have the concern about safety here.
Using Tonio may be worthwhile if you are sending large sums, and you want the transfer completed within a day or two.
Compare the market
It is important that you compare the market before you make any decisions on which option to use.
There are many comparison sites out there, so use as many as you want.
Use as much detail as possible to filter your search to suit your requirements.
These are some points to consider:
- Is the deal the best on the market?
- Is the option you are using covered by the FCA?
- Are you sure it’s a legitimate company?
- Are they able to cater to your needs in terms of the value and timeframe?
Make sure you don’t click on links the company sends, unless you are sure they are legitimate. These links could be spam and could cause a virus on your computer or phone.