The Aussie dollar is in a slump this week, hitting a four month low of 76.00 US cents early on Tuesday morning. That’s the lowest it’s been since 13 December 2017.
With the Aussie dollar so low, you might be wondering just how to lock in a top deal when transferring money to friends and family overseas. Well, never fear, because we’ve got three handy hints to help you get the most out of your international money transfer.
In broad terms, you’ve got two options when making international money transfers - a bank, or a specialist IMT service - and generally speaking, banks charge more fees and bigger margins on your transfer.
So to get the best bang for your IMT buck, it’s a good idea to consider setting up an account with a specialist. Start by checking out some of our Editor’s hot picks below, and if you want to see more, head over to our full international money transfer comparison table.TorFX
When exchange rates are always changing, its sometimes tricky to score a great rate at just the moment you want it. A forward contract can be the solution to that dilemma.
When the Aussie dollar is strong, you can use a forward contract to lock that exchange rate in for a future transaction, usually for anywhere between 3 months and 1 year afterwards. The downside is, if the exchange rate improves after you’ve locked in your forward contract, you won’t be able to benefit from this better rate.
Many IMT services offer the option of a forward contract, but not all do, so if this strategy sounds like your cup of tea, double check that it’s on the table before signing up.
This one’s a great strategy if you need to make a transfer, but aren’t in any particular hurry to do so.
Instead of having to check exchange rates yourself every day, setting a limit order allows you to nominate an exchange rate you would like for a future transfer, and have the IMT service monitor rates for you.
When your chosen exchange rate is available, the transfer you’ve set up will be processed. That’s a super easy way to make sure you’re only getting the exchange rate you really want. Having said that, keep in mind that if your ideal exchange rate is never available, your transfer won’t be processed. If you’re working to a time frame in this case, you may just have to cancel the limit order and make a regular on-the-spot transfer, which may mean not getting the best possible rate.International money transfer tips