How to Use Currency Transfer Brokers to Cut the Cost of Buying Property Abroad

Using the services of a currency transfer broker can be a decision that will make a huge difference for every real estate buyer. This might be the key that will help you move on from buying domestic properties to those abroad. Without this service, making such a purchase can be a challenge in the current global economic recession.

These are challenging times when the global economy is volatile, and shifting currency exchange rates might sink your whole fortune. However, despite the COVID-19 pandemic, many housing markets are doing rather well. And the crisis is also bringing down some taxes and interest rates. Therefore, it creates a stellar opportunity for buyers with sufficient capital.

The capital is a major issue here because buying property abroad is never cheap. Even if prices dropped hard in some markets due to the pandemic, it’s still prudent to look for ways to cut your costs. One of the more effective ways to do this is to find a cheap international money transfer broker. This service provider will not only reduce the immediate transfer costs. Currency brokers also offer a wide range of extra services that can help save more money in the long run.

Buying Real Estate Abroad: Why Choose Currency Transfer Brokers over Banks

In essence, currency brokers are the third party in a money transfer. They act as an intermediary between your bank and the recipient. The transaction goes along the lines of:

1. You transfer money to the broker’s account.
   This will be a cheap and simple domestic transfer for you. Many brokers accept transfers from debit and credit cards, as well as some other methods.
2. The broker makes a transfer to the recipient from its account in the destination country.
   This means that the broker will also make a simple domestic transfer but in a different country.

As you can see, the funds don’t actually leave the country when making a cheap international money transfer this way. Therefore, the transaction isn’t subject to laws, regulations, and fees that are part of cross-border money transfers. This is the main difference between the services offered by currency transfer brokerages and banks. As the transfer process is simplified, the broker can avoid charging high fees and using a big margin for foreign currency exchange.

As a result, an international bank transfer will cost you about 1.5-3% of the transfer volume, on average. Note that in some countries and for exotic currency pairs transfers can cost upwards of 7%!

Currency transfer brokers, on the other hand, often charge no fees at all. Even if they do, the fee is small and is often reduced for big transactions. Therefore, this type of transfer should cost you 1% or less, depending on the amount and currency pair.

Also, since brokers trade currencies wholesale, they are able to keep the exchange rate low. Sometimes, you might even be able to make a high-volume transfer at a mid-market rate. This means the lowest rate possible.

Benefits of Currency Brokers: Apps, Service, and More

Currency transfer brokers offer more benefits than lowering your money transfer costs. Using these services is also very convenient. It’s true that even traditional banks now offer online banking solutions. However, currency brokers usually provide more versatile apps.

There should be both web-based and mobile apps for you to use when dealing with these brokers. Moreover, the app will keep you informed about any changes in exchange rates, which fluctuate constantly. Many of these solutions also offer additional features that enable you to not only make a transfer but also monitor it and secure exchange rates for the future (hedging).

Apps are all good, but it’s customer service that makes currency exchange brokers stand out. Leading companies in this industry pride themselves on offering top-quality customer support. The service is multi-lingual and active 24/7. Therefore, any customer can get any issues resolved fast. In the majority of companies, the support is available via an online chat, email, and by phone.

Additionally, you should know that currency transfer brokers’ customer support isn’t limited to resolving technical issues. Many of them also offer the services of a dedicated broker to help customers make the best currency decisions. This service is particularly helpful for international businesses and investors, as a professional can guide you to make the best decisions on hedging and exchange.

Also, note that some currency transfer brokers can offer specialized advice or services. For example, WorldFirst has a wide range of services dedicated to e-commerce merchants. Currencies Direct has plenty of expertise in international real estate, and OFX and Moneycorp offer extensive corporate service packages. TransferWise, on the other hand, specializes in small personal transactions. Therefore, it provides a cheap international money transfer solution with no minimum limit.

Currency Brokers: Going Beyond Cheap International Money Transfer Services

Another huge benefit offered by currency transfer brokers is the chance to protect yourself from FX volatility. Everyone who buys a property abroad takes a risk because foreign currency exchange (FX) rates change all the time. They become extremely volatile during an economic crisis. Therefore, property buyers who have a mortgage or pay in installments can’t predict precisely how much money they might lose if the FX rate shifts before the next payment. This is called currency exposure risk.

Currency brokers offer their customers access to hedging tools, which can minimize this risk. These tools allow you to make an exchange in the future using a fixed rate (forward contracts) or automate an exchange when the FX rate reaches a specific point. The latter option can help you minimize losses if the rate drops beyond the minimum you set.

A part of the guidance package offered by a dedicated broker is to help you use hedging tools more effectively. As a homebuyer, you can benefit greatly from forward contracts and assistance with using them. This tool ensures that you can control the exact size of your transfers regardless of the global economic situation, which makes it easier to plan your budget.

Note that banks also offer hedging. But usually, only large corporate and VIP clients have access to this service. Currency brokers, on the other hand, offer these tools to every client.

In Conclusion: Buy Real Estate Worldwide with Currency Transfer Brokers

When you start buying real estate abroad, you need to make sure you use every chance to reduce your costs. Many people overlook the opportunity offered by using currency brokers, which is a big mistake. Simply by choosing this service over a traditional bank wire transfer, you can save up to 2% of every transfer. You do this at absolutely no cost or risk to yourself. In fact, as these transfers are often faster, they might help you snatch up a hot bid.

Money-saving opportunities offered by brokers also go beyond making a cheap international money transfer. They can help you develop a more efficient money management strategy and offer ways to mitigate currency exposure risks.

But do remember to choose a currency transfer broker carefully. Every company in this industry offers some unique advantages. Therefore, you need to compare them and pick the one that fits best with your long-term plans.