How to transfer a large amount of money internationally

Large international money transfers happen for a variety of reasons: perhaps you are transferring funds for a business transaction or investment, or making a personal currency transfer for a regular overseas payment. Many people face the issue of how to transfer large amounts of money internationally when they purchase a property abroad, or plan for retirement overseas.

Whatever the reason, there are two main issues to contend with when making a large international transfer. Firstly, it’s really important to get the best deal on your transaction: when large amounts of money are involved, a small difference in the exchange rate or fee percentage offered can translate to significant sums lost or gained. Secondly, you need to know that your money is secure, and that it will reach its destination safely without complication.

In this article we will explain how to transfer a large amount of money internationally in the most cost-effective and secure way, looking in-depth at the decisions you’ll need to make, and the factors that might affect your choices.

First, understand your options: bank, money transfer specialist or wire transfer agent

When it comes to transferring money internationally, there are three main options: traditional banks, money transfer specialists and fast wire transfer agents.

Banks

Traditional banks, with their established presence and physical branches, are a familiar and trustworthy option for international transfers. However, transferring large amounts overseas via your bank account is likely to be an expensive option, with substantial fees and uncompetitive exchange rates. Depending on the transaction, you may need to have both a UK and an overseas bank account.

Money transfer specialists

Currency exchange specialists, such as Foreign Currency Partners, cater specifically to international money transfers. Because transferring money internationally is their sole focus, they can often seek out more competitive exchange rates and lower fees compared to banks, as well as expert support on the transaction. When authorised by (and not just registered with) the FCA, money transfer specialists provide a similar level of security to banks, so you can trust that your money is safe.

Instant money wiring agents

These operators should be treated with caution, especially where large sums of money are concerned. While they do offer faster transfer times which can be ideal in urgent situations, the fees they charge will reflect this. Spot Contracts can be arranged through a money transfer specialist and provide a recommended alternative for urgent payments overseas.

Find the best deal on exchange rates and fees

Understanding how to transfer large amounts of money internationally means knowing how to secure the best deals on exchange rates and fees. This is where an international money transfer specialist can offer a significant advantage. Monitoring the market on your behalf, they can alert you when market conditions shift in your favour, helping you to get the most competitive rates (so that more of your money stays in your pocket).

If you don’t want to trust the first broker you come across, you can still shop around. Researching the exchange rate and transfer fees at your bank, and at a variety of money transfer specialists, will help you to reach a benchmark amount that you can judge the different deals against. Working out how much a transaction will cost you can be complicated because it involves calculating both fees and exchange rates, so always ensure that you take both of these into account when comparing agents.

Ensure that your money and personal details are secure

In addition to securing a good rate for your transfer, it’s also vital to ensure that your funds are safe. Opt for a reputable, FCA registered provider such as an established bank or money transfer specialist with a proven track record of robust security measures. Don’t be afraid to ask them what measures they take to protect your money, and what will happen to your money if their company goes bust. (At Foreign Currency Partners we take the security of your money very seriously, and we are happy to outline exactly how every transaction is protected).

In addition, here’s how to transfer large amounts of money internationally, in the safest way possible:

• Avoid using public Wi-Fi for online transactions and ensure that your connection is secure. Keep your antivirus and anti-malware software up-to-date to detect and remove threats
• Double-check recipient information before hitting send: a simple typo in an account number could result in your funds going astray
• If you’re transferring a large amount of money, consider doing a test transfer first, to check that the money reaches its destination safely
• Look for providers with readily available customer support channels to address any concerns promptly

Choose the right type of transfer option for your needs

Exchange rates and fees aren’t the only factors to consider when transferring large sums of money internationally. The specific transfer type that you opt for can also make a big difference to the cost-effectiveness of the transaction. For example:

• Spot contracts: These involve exchanging currencies at the current market exchange rate on the settlement date, which is typically two business days after the trade is initiated. Spot contracts are ideal for immediate foreign exchange needs.
• Forward currency exchange: Forward contracts lock in an exchange rate today for a future settlement date. This protects you from fluctuations in the exchange rate but requires some planning in advance.
• Limit Orders: These allow you to specify the exchange rate you’re willing to accept for a currency exchange. The transfer will only occur if the market rate reaches your desired level. This is useful if you’re hoping for a more favourable rate and are willing to wait.
• Stop Loss Orders: These set a minimum acceptable exchange rate for selling a currency. If the rate falls below your set point, the transfer will automatically occur, protecting you from further losses. This is helpful for managing risk in volatile markets.
• Regular international money transfers: These are automated transfers that occur on a regular basis decided by you, with no need to monitor the markets.