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As an expat, you have taken a great leap, i.e. taking a new job abroad. If you are currently working in the United States, for example, you must have faced a few challenges at the start. For example, you may have spent a significant amount of time adjusting to a totally different language and culture, you have to live without the usual family support networks, etc. Did we miss out something? Is it remittances? Don’t worry, you are not alone. When it comes to transferring money online to family members overseas, you can easily lose out on Brazilian real unnecessarily – a result of hidden fees and poor exchange rates. If you are sending money to Brazil soon, here are some common mistakes to avoid:
Didn’t Plan in Advance
There are planned money transfers. And there are unexpected and urgent ones. However, most of these transfers can be planned in advance. Individuals, who are not in the know, can chalk up on fees pertaining to emergency money transfers. It is imperative that you plan out future and regular transactions far in advance. This way, you can gain access to lower fees.
You Fell for the Marketing Hype
Have you come across a company that accepts zero percent commission for international transfers? Are you tempted by such offers? Before you use their services, you need to stop and think carefully. How can they survive, as a business, by offering services for free? Although their claims may be true, i.e. no commission involved, you may be getting a poor exchange rate. Yes, most companies that offer zero percent fees often purchase currency at one rate. After working out their profit margin, they sell it for a less competitive rate. Remember, marketing hype is nothing compared to competitive exchange rates. The latter is always a winner!
You Settled for the First Deal that was Handed to You
It is a good idea to shop around. It is a bad idea to click on the first deal you find. Simply put, doing a little homework goes a long way. When you have gathered your top online money transfer platforms, you should utilize comparison tools to compare their services and foreign transfer exchange rates. The goal is to get a good deal at a reasonable (or cheap) price. In fact, you can transfer money online to Brazil from just $3.99. Don’t forget to read up on the site’s customer reviews. Ensure that the company serves their clientele well. Always make an informed and wise choice!
Poor Grasp Over Exchange Rates
If the transfer fees cost more than 10 percent of the market rate, you should know that you are paying too much. Getting 2.9BRL, and not 3.3BRL, for 1USD is a big difference. Unfortunately, some individuals do not realize that hidden implicit fees can be built into the rate of exchange. You must be aware of this because complacency leads to continual payments of hefty exchange fees. With that in mind, always pay attention to the interbank exchange rate. It is the wholesale rate that banks and brokers use to buy and sell currency. By knowing these rates, it will be easier for you to compare exchange rates and choose a deal that’s beneficial for remittances.
You Unknowingly Paid High Transfer Fees
Commercial banks can charge their customers major BRL for making international money transfers. If it’s too expensive for you, you should consider non-bank remittance specialists. They can send your money for a significantly lower fee. Again, it pays to shop around!
If you are looking for a way around these complex technicalities, Sharemoney has the solution for you. Our company has done all of the research that you need to do. We have made online remittances fast, cheap, and easy.
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