1st Contact Forex Money Transfers

1^st Contact Forex Money Transfers

MOVING2FX

Choosing the best way to take your money to the UK can often be a daunting and confusing experience. Often it can be tricky to understand the fees and charges involved, making it difficult to decide which option best suits your needs. This guide aims at demystifying the foreign exchange process and helps you avoid common pitfalls saving you time and money in the process.

Carrying cash
Money Transfer
Bank Transfer
Travel pre-paid debt card

Each option comes with its own benefits and drawbacks.

Carrying cash

Best option when: Passing through a country and only taking a small sum of money.

* Popular with backpackers who are only planning on spending a week or two at their destination.
* Involves physically carrying Australian Dollars to the UK and exchanging it for Pounds.
* Although cash can be quickly exchanged the consequence of losing the money can be devastating. Stories of backpackers being forced to return to Australia after losing their money are not uncommon.

Myth Buster

Travellers often choose taking cash as they believe they will receive a better exchange rate in the UK.

This is often untrue. Retail cash exchange rates are widely viewed as the worst in the market. This is because retail cash exchange outlets do not offer any discount for different amounts. The end result is someone exchanging 2000 dollars will receive the same rate as someone exchanging 10 dollars.

Asking your bank to transfer the funds over

* Best option when: Transferring large sums (e.g. over AUD 100,000)
* Involves instructing your Australian bank to credit your new UK account
* With a bank wire, the funds should be available in your UK account 24-48 hours
* Offer attractive exchange rates for amounts over 100,000
* Can be difficult to arrange if you are no longer in Australia
* Bank wires also attract high fees with the average transfer costing around AUD 55.00

Myth Buster

You will only pay one transfer fee to your bank.

This is incorrect. Your receiving bank will also charge you to receive the wire from your Australian bank. On average this fee is around £10-15. Check if the UK bank can accept a wire directly. Some banks are unable to accept wire payments directly and will send the payment via an intermediary bank. In this case you will be charged separately by all 3 banks.

Money Transfer

Best option when: Low cost and value for money is important

* Involves sending your money to the UK through a specialised money transfer company such as 1st Contact Forex
* Fees involved in using a money transfer company are significantly lower and incur no fees from your banking institution.
* Exchange rates are superior to other providers.
* Generally it will take no longer than 3 working days to clear the funds into your account.

* 1st Contact Forex has no minimum amount that can be transferred.

Myth Buster

Money transfer companies are not as safe as transferring my money through the bank

This is untrue. Foreign Exchange companies in Australia are required to hold an Australian Financial Services Licence (AFSL) issued by the Australian Security and Investment commission before they can offer a money transfer service. The licence offers the client maximum protection and ensures their funds are protected at all times.

Travel pre-paid debit card

Best option when: You are passing through the country and looking for a short term solution

* Increasingly popular
* High level of security and convenience associated with the cards
* Cards can be purchased in Australia and credited with Sterling before leaving for the UK

Myth buster

Pre paid debit cards are a great long term solution

False: Due to the multi fees incurred when uploading and withdrawing funds, the pre-paid debit card is impractical for everyday banking needs. Travellers using their prepaid card for multiple ATM withdrawals often find their savings accounts and spending money eroding away by fees and charges.

Before you agree to any money transfer product you should ask the following questions to the product issuer:
How much will sending the money cost me?
Are there any receiving fees?
What is the indication rate to be used?
How long will the payment take to clear into my account?
Important Information all firms should give you:
A reference for the payment
Confirmation of the cost, the exchange rate and how long the payment will take to clear.
A copy of the company’s Australian Finance Services Licence number.

All Australian based companies that send money for customers must hold an Australian Finance Services Licence
A licence means that the Australian Security and investment commission have checked:

The organisation is run by suitable people who have not been convicted of financial crimes.
The organisation has significant capital reserves to operate.
Proper arrangements are in place to protect your money.
Where to check:
You can check that an organisation holds an AFSL via the ASIC website at: http://www.search.asic.gov.au/fsr/flb.html