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Sending money abroad can get expensive fast if you're not careful. You have to watch out for two kinds of fees: the fixed fee for each transfer and the extra cost added to the exchange rate. While you might think using a well-known bank is the best way to go, they often have higher fees. Specialized services usually offer better deals and are more upfront about the costs. Being smart about these fees can help you save money and avoid surprises.

TL;DR:

• Fees come in two forms: fixed transaction fees and currency exchange rate mark-ups.
• Traditional banks and services like PayPal often have hidden fees, making them expensive options.
• Specialised providers usually offer lower fees and transparency, helping you save money.

Breaking Down the Fee Structure: When sending money internationally, you'll encounter two main types of fees: fixed transaction fees and currency exchange rate mark-ups. Understanding these can help you make cost-effective choices.

Fixed Transaction Fees: This is a set amount you pay per transaction, regardless of the size. While £5 might not sound like much, it can add up quickly with frequent transactions. Specialised currency providers often offer lower fixed fees or even waive them for large transfers.

Currency Exchange Rate Mark-ups: In addition to the market rate, providers add a mark-up, usually as a percentage. For instance, if the market rate is 1 USD = 0.85 EUR, a 2% mark-up would make the rate 1 USD = 0.833 EUR. Your goal should be to find a provider with the smallest mark-up.

The Real Costs: Traditional Banks vs. Specialized Providers

Traditional Banks

• Fixed Fees: Can range from £10-£40 per transaction.
• Exchange Rate Mark-up: 3-5% above the market rate.

Specialised Providers

• Fixed Fees: Often £0-£5.
• Exchange Rate Mark-up: Generally 0.5-2%. (Sometimes even nothing!!)

Action Plan:

1. Determine the Total Cost: Calculate both the fixed fee and the exchange rate mark-up.
2. Compare on Sendrater.com: Use our platform to find a provider with the lowest total fee.
3. Select a Payment Method: Options may include bank transfers, debit cards, and even cryptocurrencies.
4. Initiate the Transfer: With your chosen provider.
5. Review and Share: Your experience helps others make informed choices.

Knowing the types of fees and how they impact your transfer can lead to significant savings. By comparing options on Sendrater, you're better equipped to find a deal that minimises these fees, ensuring more of your money reaches its destination.