Article by MozoAccording to the World Bank, China is one of the top receiving countries for money transfers, with Australia one of the big contributors. The number of Australians investing in Chinese businesses and property is on the rise and there continues to be a large influx of Chinese people migrating to Australia. Therefore there are many reasons to send money to China, including:
Remember this guide is informing people about transferring money to China, it’s not for those wishing to travel there. If you’re planning a holiday to China for personal or business reasons, head to the Mozo travel money section of our site.
If you want to send money to China, you’ll notice that there are several different options. However, there are two main players in this now competitive market - banks and foreign exchange providers. A foreign exchange provider specialises in sending money overseas, the big ones are - OFX, World First and CurrencyFair. So if you're transferring money to China on a regular basis, or need to make a large one-off transfer you could save hundreds if not thousands of dollars by choosing a specialist provider over a bank. You want as many Chinese Yuan for your Australian dollars don’t you?!
|Feature||Bank||Foreign Exchange Provider|
|Exchange Rate||Bank exchange rates are typically more expensive than an independent broker. The bank usually chooses the exchange rate||As they are the specialists in the field, foreign exchange providers they usually offer a much better exchange rate. |
| Transfer fees ||Banks usually charge around $20 per transfer.||If you transfer over a certain amount, the provider usually won’t charge a transfer fee. |
|Transfer options||Most banks allow you to transfer money in a branch, online, by an app or over the phone; most options come with a fee.||You can transfer your money online, over the phone and some providers have an app you can use.|
Click the link to read about more options of sending money overseas.
Regardless if you’re sending money to China for individual or business purposes there are still five key features to look for when comparing international money transfer providers.1. Transfer limits: Some providers have a minimum and maximum amount you can send to China. You might have to shop around to find one that allows you to transfer the amount you wish to send.
2. Rates: The higher the exchange rate the more Chinese Yuan you’ll receive for your Aussie dollar. Don’t go with the first exchange rate you come across, take the time to calculate how much you’ll get from the different rates being offered by several providers. A few cents difference in the exchange rate could save you lots and lots! Compare the market and save on international money transfers!
3. Turnaround time: This refers to the time it takes for your money to be processed by the IMT provider, to the moment it hits the recipient’s bank account.
4. Charges and fees: There are several fees associated with transferring money to China but if you do your research some foreign exchange specialists waive the charges if you meet a certain criteria. Fees to be wary of include: a transfer fee, a sending and receiving fee, a cancellation fee and an amending fee.
5. Transfer options: Sending money to China really couldn’t be easier, you can make the transfer online, by phone, in a branch and some providers even have an app you can use.
As we’ve mentioned, transferring funds overseas is now a fairly easy, economical and hassle free process that can be done from the comfort of your own home. Regardless of which foreign exchange specialist you have decided to use the method is pretty much the same.
You now know how to set up an international money transfer, so let’s look at what information you need to make it happen.