No matter what you’re looking to buy, whether it’s a new washing machine, holiday or even a service such as car insurance, making sure to use a price comparison website/tool can almost always save you money. Price comparison websites and tools work by comparing the varying prices of the same product or service across multiple retailers. For example, that holiday to the Bahamas you’ve been longing for might very well cost £300 less when booked with Thomas Cook compared with Thomson; a price comparison website may help you to discover this. Clearly then, price comparison websites can help you to make more well-informed purchasing decisions when it comes to everyday things, but what about the tricky (and often costly) process of sending cash abroad?
Unfortunately, when most people seek out a company to allow them to send cash to another country, they’ll encounter a plentiful supply of “marketing” speak and hidden fees, which can often make choosing the least costly method almost impossible. Because of this, high percentage fees are common, and it’s easy to end up “out of pocket” because of them. Luckily, it’s now possible to use a money transfer comparison tool/website (such as the one here at SendThatCash.com) to compare all of the different options on offer and ensure that you don’t lose out. Oh, and the best part is that it’s 100% free to do.
INTRODUCTION: HOW TO COMPARE AND UNDERSTAND MONEY TRANSFER FEES
If you’ve been thinking about sending money abroad, you’ve probably already explored a few options. For most, the first port of call when will be one of the many international money transfer companies such as Western Union, Transferwise or World Remit. In fact, a quick Google search for the phrase “money transfer” will bring up all three of these companies on the very first page; they’re clearly population options. While the simplest option may be to opt for the first company you find, there’s no guarantee that this will offer the most low cost option for you. In all likeliness, it probably won’t. Even if you decide to transfer the money using your bank rather than a specialist money transfer company, chances are that you’ll still encounter hefty fees (perhaps even heftier than with specialist companies). However, even if you decide to do a bit of price comparison research yourself, you’re likely to feel even more confused than when you began.
Many money transfer companies advertise “0% commission” or “low fees” but when you look deeper, you’ll realise that these are nothing more than clever marketing tactics. The true cost of transferring money can often cost far more, due to the added fees that many companies conveniently locate in their small print. Not only this, but when you do a manual money transfer comparison between two companies, you’ll often see that their respective exchange rates vary somewhat. Typically, this is by quite a small amount so it’s easy to assume it’s negligible, but when you’re transferring large sums of money, this can actually make a big difference. To illustrate this, let’s look at an example money transfer comparison for a £100 (GBP) transaction to the United States (USD) for two companies: Transferwise and World Remit.
You can see from the screenshot above that when transferring £100 (GBP) to dollars with Transferwise, our recipient would receive: $151.10. However, for the recipient to receive the same amount ($151.10) if we used World Remit, it would cost us £102.72 (2.72% more). You can see this on the screenshot above. The reason for this is two-fold. Firstly, the fees between the two companies vary as where World Remit charges a fee of £2.99, Transferwise only charges £1.
Secondly, there is a small variation in the two companies respective exchange rates. World Remit has an exchange rate of £1/$1.5151 whereas Transferwise offers £1/$1.52626. To put it bluntly, in tis example, Transferwise offers a more favourable fee (£1) and more favourable exchange rates when compared to World Remit. However, although it might be easy to compare a couple of companies manually like this, we still don’t know how these companies compare to the many others out there. What if there’s a cheaper way to send cash?
This is where money transfer comparison tools come in.
HOW YOU CAN USE SENDTHATCASH.COM TO PERFORM A MONEY TRANSFER COMPARISON AND SAVE MONEY
SendThatCash.com was one of the first price comparison tools of its kind and it remains one of the most widely used, mainly due to the large amounts of money it can save during an average cash transfer. The way the website works is simple: firstly, you enter the amount of money you’d like to transfer; secondly, you tell the website where you’ll be sending the money from (e.g. UK) and to (e.g. USA). Once you’ve done this, the Sendthatcash.com starts the money transfer comparison and begins comparing the fees and exchange rates of a number of different companies using it’s price comparison algorithm.
You can see part of the results presented by SendThatCash.com above; these are the results of a price comparison request for £100 (GBP) to US dollars. As you can see, these are only the first couple of results presented by the website as there are actually five different results. All of this is done in just a few seconds. The website doesn’t just give a rough and generic price comparison though, it also breaks down exactly where your money will be going and what fees you’ll be paying.
For example, if you opted for the first result (CurrencyFair), you can see that you’d incur a transaction fee of £2.38 and that for every British Pound you exchange, you’ll receive $1.52. In the end, this leaves the recipient with $148.38.
Clearly, using a price comparison service like this helps to make a better and more informed comparison when you’re looking to send cash abroad. Not only does it compare a large number of options at the touch of a button (thus saving you time), it will also save you money, as you’ll be able to quickly and easily view which company is the cheapest for your particular transfer. It also ensures that you know all of the fees that you’re paying, and helps to “weed out” and fees that otherwise, would likely remain hidden until the time of purchase. So, if you’re looking to send cash as cheaply as possible, click here to start your price comparison now.