When you’re looking to transfer money to Malaysia, you could go and visit each provider’s website to see who’s offering the most competitive exchange rates now. Or, you could just save yourself a whole lot of time by punching your numbers into our MYR calculator below which pulls some of the best deals in the market into the one place:
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The world of international money transfers may seem tricky to begin with. That’s why, we’ve written up this nifty guide to help you navigate every step of the process. Read on to discover everything you need to know about sending money to Malaysia.
Good question. This really depends on why you’re sending the money. International money transfers are often the most cost effective way to transfer money overseas if you are:
a) looking to send money to a loved one back home
b) transferring money to purchase a property
c) paying business related expenses in an overseas country
d) moving to an overseas country for an extended period of time
But it’s generally not the right choice if you are simply visiting Malaysia for a short holiday. In that case you’d be in the market for a travel money option like a prepaid card or travel credit card.
Decided that an international money transfer is the right choice for you? Well, the next thing you need to consider is the type of foreign exchange provider you should go for. Our database shows that for transferring money to Malaysia, you’ll have the option of choosing from some great value online foreign exchange specialists as well as peer-to-peer providers. Here's a quick snapshot of the two with their pros and cons:
|FX Provider Type
FX agencies like OFX and Torfx focus solely on international currency transactions.
|They generally operate online or over the phone, which means you can access their services anytime anywhere
They are known to offer attractive exchange rates with relatively low transfer fees
|Some IMT specialists have a limit on the minimum amount of money that you can transfer at a time
Peer-to-peer FX platforms transfer money overseas through member matching - say you want to convert AUD $500 to MYR, the provider will find other members who are also looking to convert a matching amount of ringgits to Australian dollars.
|They charge a very small transfer fee, making them the perfect option for sending smaller amounts of money
They apply the mid-market rate at the time of transfer, which means they don’t add a margin to the conversion rate
|They generally lay a cap on the maximum amount of money you can transfer in one go
While picking the type of provider you'll send money with is important, you're not done yet! Before sending money overseas, it's also essential you’re aware of the common traps when it comes to sending money overseas, so you can get the most out of your precious dollars. Here are some of the common mistakes to avoid:
1. Not looking for the best MYR exchange rate.
Failing to find the best rate for exchanging your Aussie coin to ringgits can cost you big time, especially if you’re dealing with large sums of money. That’s why it’s important to compare deals from a number of international money providers before you pick your transfer match. Mozo’s handy exchange rate calculator above makes it easy to compare rates by pulling a range of offers into the one place.
2. Not comparing the features of FX providers.
When it comes to transferring money overseas, you may think the most important thing is scoring the best exchange rate but this could lead you down the garden path if you end up transferring money with a provider that doesn't offer the features you need. For instance, if you regularly send money overseas, finding a provider that offers fee free transactions is a must. Alternatively, you may be in a hurry to send money overseas, in that case you'd need to look for a provider that offers transfers in 1-2 days or allows you to pay an extra fee for a faster transfer. See why the features matter so much?
3. Not checking additional charges.
You’ve found the best MYR exchange rate, you’ve shortlisted an IMT provider that meets all your needs, and yet you could still be stung by high fees. Why? Well, often people forget to look at additional charges that come with an overseas currency transfer. For example, the bank in Malaysia that you’re transferring money to can also charge a commission for receiving funds. That’s why, you should look out for any hidden costs that might sneak up on you at the last moment.
Don’t know your IMO from your SWIFT? No worries! Here’s a quick look at some essential IMT terms that’ll make the process easier for you:
Forward Contract. What should you do if you spot a competitive exchange rate for Malaysian Ringgit but you don’t need to transfer money for a few weeks? Check if the provider offers a ‘Forward Contract’, which allows you to lock in that competitive rate for a transfer you’ll make later on.
IMO. This is just an abbreviation for international money order.
Interbank rate. Also known as the mid-market rate, this is the bank to bank exchange rate that’s applicable to IMT providers when they buy foreign currency. The providers then apply a margin to this rate before it’s passed on to you.
Spot rate. When an international money provider gives you a quote, the exchange rate is only valid at that point in time and is called the spot rate. If you’re happy with this rate and want to lock it in, you should book your transfer right away, or you can set up a Forward Contract.
SWIFT/ BIC code. The SWIFT or Bank Identifier Code (BIC) is an international bank code that helps the FX provider identify the receiving bank.
Wire transfer. When you’re sending money from one bank account to another electronically, it’s called a wire transfer.
Now that you know the dos and don’ts of sending money to Malaysia, here’s how you can book your IMT deal:
- Scroll up to the exchange rate calculator above and select the provider you want to use to send the money
- Hit the ‘go to site’ button to reach the provider’s website
- Register and set up a foreign exchange account with the provider
- Confirm the amount of money you’re going to transfer
- Provide details of the recipient including their name and bank details
- Book the transfer