The technological advancements in the money transfer space over the years have been plenty. However, international money transfer costs still remain high. When you choose a bank to send money abroad, you will end up paying a heavy amount for the transaction.
This makes banks one of the most expensive mediums to transfer money overseas. In this article, we will explore why money transfers through banks are costly and what is a better alternative.
Why banks are expensive to send money abroad
The exchange rates offered by banks are one of the worst in the market. Besides abysmal rates, they also charge a hidden fee, which further brings down the exchange rates. Since money transfer is not the primary service of banks, they do not bother offering better rates. The service fee is another component of the transfer, which makes you shell out a higher amount for transferring money. On the whole, it is not advisable to opt for banks to send money abroad.
What is a better alternative to banks for money transfer
Using the services of a money transfer agency is the cheapest way to transfer money overseas. Most of these companies make use of the latest technologies that reduce the transfer time. Furthermore, you can also expect to receive the best exchange rates in the market with money transfer companies. Traditional options have middlemen, which is another factor that increases the cost of transactions. Money changer rates are competitive and give you the best value for money.
How to choose the best money transfer service provider
It is essential to check the exchange rates, service fees, speed, and general terms before you opt for the services of a money transfer agency.
Exchange rate
The exchange rate is the value of one currency compared with another. The rate depends on the supply and demand for currencies. Money transfer agencies and banks make money from the difference that exists in the exchange rates. Sending cash abroad without spending a dime isn't simple as you will get charged either through fee or a lower rate. In any case, it is best to locate the least expensive medium that is also reputed and trustworthy.
Service fees
Money transfer agencies and banks charge varying fees. It might be a fixed sum or a percentage of the transfer amount. Depending on the payment method you choose, you will also have to pay additional charges. Credit cards will cost you more as compared to debit cards or bank transfer.
Speed
Depending on your urgency, some money transfer companies might charge you more. Most of them will transfer the money within a day or two to your recipient. In some cases, there will also be a facility of same-day transfer.
Looking to send money from Malaysia to Bangladesh (MYR to BDT)?
If you are looking forward to transfer money from Malaysia to Bangladesh , you can try our services. At Lotus Remit, we are a specialist and authorized money transfer agency that can help you transfer money abroad hassle-free. You can expect competitive Malaysia ringgit to Bangladesh taka rates, without any markups or hidden charges. We also have a dedicated customer support team to guide you at each step. Contact us today to know more about our services and transfer rates.