Shortlisting a foreign exchange provider that’ll offer you a great deal for sending money to Japan has never been easier. Just take a look at our exchange rate calculator below to see who’s offering the best exchange rates for the Japanese Yen right now.
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Where can you find the most competitive exchange rates? How do you know if a provider will handle your money safely? What are the features you should look for in an international currency provider? There’s seriously an endless list of questions to ask when it comes to sending money overseas! So if you’re looking for more clarity on the entire IMT process, read on as we run you through some of the common questions and concerns around converting your Aussie coin into Japanese yen.
When you scan our exchange rate calculator above, you’ll see there are typically three kinds of international money transfer providers. All of them have their pros and cons, so to help you decide which type of foreign exchange provider to go for, here’s a quick runthrough of each:
Banks are a trusted source for dealing with international currency, especially given that you’re probably familiar with their services for other products such as savings account and credit cards. Using your bank to transfer your Australian cash to Yen is a convenient option but the only drawback is banks generally charge high conversion fees compared to international money specialists.
It’s still a good choice if you really don’t have the time to compare providers and exchange rates or if you’re making a small one-off transfer to a friend in Tokyo and don’t want to bother dealing with a new provider.
Foreign currency agencies.
Foreign exchange specialists like OFX and HiFX are agencies that focus on international currency transactions. They generally operate online or over the phone, which means you can access their services no matter where you are.
The best part about transferring money with an international money agency is they are known to offer attractive exchange rates with relatively low conversion fees. This is generally the cheapest option for an international money transfer, especially if you’re planning on sending money to Japan on a regular basis.
Peer-to-peer FX platforms like TransferWise offer a unique solution to transfer money to Japan through member matching. Wondering how that works? It’s quite simple actually. Say you want to convert AUD $500 to Japanese Yen, the provider will find other members who are also looking to convert a matching amount of Japanese Yen to Australian dollars. You can then transfer the money to the provider who will carry out the exchange.
Peer-to-peer transfers are usually carried out online and providers apply the real exchange rate (also known as the mid-market rate) at the time of transfer. While peer-to-peer providers do charge a small fee, it is generally much lower than what the banks charge. And because they don’t normally have a minimum transfer limit, they are an ideal option if you’re only transferring a small amount of money.
Sure is! It’s safe to transfer money online as long as the foreign exchange provider you’re dealing with is regulated through ASIC. And if you’ve shortlisted an IMT agent using Mozo’s exchange rate calculator then you needn’t worry about this at all because we only list providers who’ll handle your money safely.
When you’re comparing international money providers, there’s not just one but a combination of features that you need to consider. Here’s a quick snapshot of what these are and why they’re important.
1. Exchange rates. When you’re sending money to Japan, the higher the exchange rate the more Japanese Yen you’ll receive for your Aussie dollars. Remember that even a few cents difference in the exchange rate could save you a lot of money! Consider this - at the time of writing, TorFX (which also has a best rate guarantee) was offering JPY 776,863 for $10,000 whereas a big bank was only offering JPY 724,802.
2. Transfer limits. Many providers have a minimum and maximum limit on the amount of money you can send to Japan in one go. For instance, while a foreign currency agency might need you to convert at least $200 at a time, a bank may have a cap of $25,000 as the maximum amount that you can transfer.
3. Turnaround time. This is the time a provider takes to process your request for an international money transfer. While the time can vary from one provider to another, it generally takes anywhere between 2-7 business days. If you’re in a big rush to send money, many providers offer quicker transfers for an extra fee.
4. Conversion charges. The fees a provider charges for carrying out the international money exchange can vary based on different factors such as the amount you’re transferring, if you’re sending money online or in person and if you’re after a one-off or regular transfer. Some foreign exchange agencies waive certain charges if you meet a specific criteria. For example, say you’re buying property in Osaka and need to send money regularly, an international currency specialist may offer fee free transfers if you engage with them long term.
5. Modes of money transfer. You can also pick a provider based on the transfer options they offer, for example, whether they give you the choice to make transfers at a branch in person, online or over the phone. Don’t forget, the fees charged for all the options can vary for different providers.
Once you’ve shortlisted a suitable FX provider based on your needs, transferring money is quite an easy process, especially if you’re carrying it out online from the comfort of your home. Here’s a broad step-by-step description of how the transfer happens:
Step 1: Hit the ‘go to site’ button of the selected provider on Mozo’s exchange rate calculator above
Step 2: Register and set up a foreign exchange account through the provider’s website
Step 3: Decide the amount of money you want to transfer
Step 4: Double check the costs and exchange rate of the transfer
Step 5: Provide details of the recipient including their name and bank details
Step 6: Book the deal!