People living abroad, people working abroad, retired ones, migrants, expatriates and international students all need to send money abroad. While sending money from UK to other countries there are 2 important points:
- What is the current pound exchange rate
- What is the cost of money transfer providers
The best pound exchange rate in a certain period is going to be rare so it’s wise to take a look closely at exchange rates graph or to subscribe to exchange rate notifications.
Banks are not going to provide the best rates and the best pound exchange rate now belong to the past. We are going to go deeper about these subjects here.
Banks use so old systems that they can’t provide us with the best pound exchange rate
European banks, Asian banks, African banks and American banks, but also Australian banks are all in the same systems. The systems they currently use to send money from one country to another is based on trust between banks. So not all of them are in a trust network, so the efficiency is not total. And using a network to transfer money is typically the same as using intermediaries. Unfortunately we all know that using intermediaries increase the risk and decrease the speed. It also increases the cost because all intermediaries take their own margin. It results in simply the slowest and most expensive money transfers for which banks cannot even predict the cost of one international money transfer. As a result, no bank can tell us which amount I’m going to receive if I send USD to GBP or GBP to EUR, for example, even though banks know about the best pound exchange rate at this very moment.
The best pound exchange rates belong to the past
With the recent Brexit and the article 50 from Theresa May, the best pound exchange rate now belongs to the past. Indeed it has been very clear that the currency markets reaction to those events have been a fear for UK more than for Europe. It appears to be a bad news for Great Britain and a good news for the exportations though.
Do not use your bank to transfer amounts of money abroad because it’s not going to provide you with the best pound exchange rate. You should know that there are many money transmitters able to make the job and that anyway the best pound exchange rate belongs to the past since the Brexit and the article 50 from Theresa May..