Got my first comment on my previous post, nice!
"I would like to know how you do it now. Particularly for small amounts... My father in law sends small checks to my husband for his birthday, too, and the entire thing is eaten up by a $25 fee just for cashing a foreign check." - Buendia.
So I would dive a little further into it. Pardon me for not giving the full in and out analysis of the Forex industry, but it's a rather complex topic and I'm limited in time. So I'm it post by post, so eventually this blog could serve as a source of knowledge.
- Cashing a foreign check is a big no-no, and as you said common fees are 25 Dollars in the states, and even higher fees in Europe.
- The way to transact funds without paying that ludicrous commission is via bank to bank transfer.
- Wait! banks charge approximately the same amount of money as they do for foreign checks in "transfer fees". On top of that, they will take a margin of 2-3% on the exchange rate, and you'll end up in the same situation.
- So how would one conduct bank to bank transfers internationally without paying fees nor commission?
Specialized FX companies at your service
The market is booming with companies that provide the same service as banks (transferring funds internationally) but we smaller or no fees, and much better exchange rates.
Which companies are recommended? Well I have inspected the market for quite some time now, and even work for a site that does exactly that.
I will speak about the characteristics of all companies on a latter stage here, but for now I can introduce Currencies direct (review available here -
The key elements are:
- you can send money from the UK, and from the US, to almost 100 different countries so I am assuming this will fit your requirements (if not, let me know).
- the min amount is low at $100.
- no fees applied.
- better margins than banks.
- intuitive platform, easy, phone support, you do it once with their escort and then you can do it yourself quickly.
How does Curreices Direct direct and other FX companies work?
Simply enough they create an account on your name. You get online access to it. you transfer funds to that account in your local currency via domestic transfer (which costs between nothing to a few dollars).
Once money is stored in your account, you can ship in short time spans to wherever you want.
There is a lot more to it and more advanced options but I wanted to address that inquiry. I hope it helped.