Widespread use of the Internet and advances made by international money remittance businesses continue to make the global market a smaller place. An increasing number of businesses now transfer funds overseas for an assortment of reasons. The other end of the spectrum consists of businesses that receive international payments. Not surprisingly, these include large, mid-sized, and small businesses.
An easy way to choose the right service provider is to compare money exchange companies after accounting for the specific needs of your business. For example, the geographical location of your business plays an important role. Factors such as money transfer exchange rates, the fees you have to pay, and probable currency exchange risks also require your attention.
iCompareFX.com guides businesses of different kinds and sizes in optimizing their foreign exchange programs by minimizing all associated risks and costs. We understand industry requirements; our analysis of money exchange businesses is methodical and detailed; and we continue to assess market conditions on an ongoing basis. This gives you the ability to compare money transfer companies of your choice with ease.
Whether you wish to initiate an instant international money transfer, schedule one for the future, or set up regular payments, iCompareFX.com provides the information you need to make an informed decision.
Best Live Currency Exchange and Money Remittance Service Provider for Business
While several specialist companies provide highly competitive money transfer exchange rates, picking one that suits you best requires that you pay attention to multiple aspects such as the location of your business, the destination country, fees, processing time, and customer service levels. Here are some of the best international money transfer service providers that cater to businesses.
Business Transfer Terminology Explained
Before you compare money exchange companies, it is important that you equip yourself with some basic information about this field. While the money exchange business might seem a little complicated at first, a little education can take you a long way.
When you compare money transfer companies, find out if the ones you shortlist allow you to hedge, or minimize your currency exchange risk. The forex market is prone to volatility, which can lead to considerable fluctuations in exchange rates. This is why an increasing number of businesses choose to hedge future cash flows by stabilizing money transfer exchange rates at which they trade in the future. You can use different hedging techniques, depending on the money exchange business you choose.
Also referred to as stop-loss orders, limit orders gives businesses the ability to lock minimum and maximum ranges for transfers in the future. For example, if the existing GBP-USD exchange rate is 1.32, you can set a limit order and ask the fund transfer company you are working with to execute your order once the GBP-USD exchange rate reaches 1.40.
With a limit order, getting the desired rate is possible, and you don’t have to track the rate manually. The downside is that there is no hedging of risk if the rate does not reach the desired level. In addition, limit orders do not come with the potential to maximize returns when the market moves in a favorable direction.
Most prominent fund transfer companies offer forward contracts, through which you can set a predetermined rate to exchange a certain sum of money after a specified time period. For example, you might enter into a one-year forward contract where you convert USD $100,000 to GBP at the rate of 1.40.
Forward contracts give you complete hedging ability that can yield positive results under favorable market conditions. However, when the forward rate is lower than the rate at which you booked the trade, you have to bear a negative carry.
One Cancels Other Orders
This is a combination of a limit order and a stop-loss order, where one cancels the other upon meeting a pre-condition. Going with the examples given above where you set a limit order for 1.40 and a stop-loss order for 1.25, when the rate gets to either of these points, your fund transfer company executes the trade.
These orders carry limited risk and come with upside potential. However, the benefit can be limited and steep fluctuations can lead to gains as well as losses.
What Are Online Sellers or E-Tailor Services?
An increasing number of businesses are making their products and services available to international audiences. However, selling internationally comes with its share of complications. For example, businesses that use online platforms such as eBay and Amazon can end up losing as much as 4% of their revenue if they rely on typical commercial bank exchange rates and fees.
Using the services of a fund transfer company that provides services to online sellers can lead to considerable savings, given that they let you move funds out of countries such as the U.S. and the UK to your home country inexpensively.
When you compare money exchange companies that provide services to online sellers, you will see that segregated collection accounts give you the ability to accept payments in different currencies. A centralized online system lets you manage your transfers from anywhere, at any time. Prominent money remittance businesses that provide specialized services to online sellers include:
Some fund transfer companies let you decide when you want to convert your funds, and some even notify you when exchange rates are in your favor. Automated transfers can save significant time.
The Role iCompareFX.com Plays in Live Currency Exchange
iCompareFX.com has reviewed and continues to review, leading international money remittance businesses. We pay attention to more than money transfer exchange rates and fees when comparing fund transfer companies, addressing other important factors such as registration, credibility, and customer service levels, as well.
When you compare money exchange companies on iCompareFX.com, you can learn about aspects such as supported countries and currencies, payment and transfer methods, transfer times, and more. Some of the companies we review provide promotional offers, details of which you can find here.
Before your next international remittance money transfer, use the tools provided by iCompareFX.com to compare your options thoroughly.