If you are moving to Australia and are purchasing a property, then the chances are that you will have to exchange currency in order to pay for it. Following this, you will perhaps be moving your savings over to Australia, and before you know it, you have needed to exchange a huge amount of money. As it is a large amount of money it is important this exchange is handled in the most efficient and cost effective way possible.
Many people assume that using their bank will be the best option. However, there are a few things that you should take into consideration. The banks typically take a far larger spread from the interbank rate when they work out your exchange rate, which relates directly to you receiving a worse exchange rate. In addition to this the payment system can be slow and the transaction fees are usually higher.
It would therefore be good for you to speak to a foreign exchange broker. These brokers specialise in getting clients an exchange rate that is far close to the interbank rate, therefore meaning your money goes a lot further. They are also able to offer you options that will protect you from adverse rate movements in the future. One broker even offers ‘Currency Options’ which are a hedging strategy that allow you to protect yourself from these negative rate movements in the future, whilst also allowing you to take advantage of the rate.
Even if you are living in Australia and need to send funds overseas for whatever purpose, it pays to speak to people who genuinely specialise in this area and focus on giving you the best possible rate.
When I moved my savings from overseas to Australia, I wasn’t using a bank – I was using a broker. My mistake, however, was to pick a small company because I was looking for the lowest possible fees. I should have thought about the reputation of the company and about the way they work, meaning efficiency, reliability, things we often forget about. As a result they’ve made numerous mistakes and I ended up losing a considerable amount which took me months to recover. They did repay me the losses I suffered because of their mistakes, but it took a lot of time, and in general was a nuisance.
For those of you who decide to learn from my mistakes, here is a recommendation – one broker who has a reputation for reliability, efficiency and competitive rates is World First. They also have offices in Australia, New Zealand and London which means they are available around the clock.
You can visit their website at www.worldfirst.com
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