Often a person who wishes to transfer money to a foreign recipient will go straight to the bank. The bank will deduct its service fee and apply an exchange rate that is usually higher than the prevailing rate and then deposit the remaining sum to the recipient’s account.
Similarly, other people who are savvy about the process might use internet-based platforms such as PayPal, Payoneer, etc. they are fast but expensive at times. So, when you are in need to transfer money to the UK from any part of Europe it is advised that you compare which service suits you the best.
In this article, we lay down the essential features of various methods to transfer money to the United Kingdom from other European states.
Transferring money through a bank
Many banks these days offer international money transactions. A person having an account in any such bank can deposit cash or cheque directly in the receiver’s account. The bank charges a certain fee and applies an exchange rate that is usually higher than the prevailing interbank rates. It takes 2 to 5 working days before the amount is reflected in the receiver’s account. Another scenario is where the sender and the receiver have accounts in the same bank or its subsidiary. In such cases, the sender can simply transfer funds to the receiver’s account through a mobile application without ever physically visiting the bank.
Though an expensive and slower method, a bank transfer provides maximum security of funds. The entire process is backed up by state financial institutions any losses during the transaction that may occur are covered.
Web Platforms and applications
Several internet-based platforms and mobile applications offer money transfer services. Though different in their construct, both channels are similar as far as the delivery of services is concerned. Hence, we deal with them simultaneously here.
Paypal, Payoneer, Skrill, and many such applications and platforms charge a certain fee for transferring funds in most of the countries in the world. Some even offer currency options as well. The channel provides rapid transaction services anywhere in the world.
Wire transfer & foreign exchange brokers
Wire transfer services such as MoneyGram and Western Union are another way you can send money to the UK from anywhere in Europe. Simply walk into any wire transfer company’s outlet and wire the amount you wish. The receiver will receive a secure code on his phone or email. On producing that code in his/her hometown at the corresponding transfer company, the cash can be withdrawn in local currency. Wire companies often apply the official interbank exchange rates and a percentage fee on the transactions. In some cases, the exchange rate may be even higher than the interbank, something you must be aware of before you use this channel.
Selecting money transferring channel
While selecting the most suitable channel to transfer funds to the UK from Europe there are a few tips you should keep in mind. First of all, the amount you wish to transfer matters a lot. For an amount ranging from 1-1000 USD, you will be better off using an online platform or wire transfer instead of a bank. Secondly, the country from where you are sending the money also matters. For instance, a channel may charge more if you transfer funds from Italy and a lower fee if the same transaction was made from Germany.
You must read the fine print. Sometimes the service provider may claim that no fees are applied, but you may end up paying extra for the hidden charges. Another factor to consider is the currency rates; the foreign exchange is super volatile, and the rates fluctuate every second. A forex broker can assist you in locking transactions when the market is sluggish and the rates are trending on the lower rungs. Once you lock the transactions you get the same rate even if the market surges later on.
