The process of sending currency abroad using the services of a foreign exchange broker is very simple indeed and this short guide highlights the process from start to finish.
- Compare the market and decide upon what currency exchange you are going to use.
- Register with the broker online, over the phone or by requesting a paper registration form. An online application is recommended unless you have any specific questions you want to ask the broker over the telephone or if you are old fashioned and like doing things by ‘snail mail’.
- Depending upon whether or not you meet the company’s security and credit checks, you may be required to provide further information and personal identification. If you are looking to transfer money to a country that is considered to be high risk, you might also be requested to send proof of why you are sending the funds and ID for the receiving party. This process is called KYC (Know Your Customer) and is a legal requirement that brokers must complete. Some are more stringent than others with their requirements.
- Once KYC has been completed, you can now begin transferring funds. Simply call your broker, request a rate and book the deal. Don’t be afraid to haggle with the broker as they will often be happy to negotiate and by getting a slightly improved rate can save you large amounts of money. You have nothing to lose by doing this even if they do stick to their guns.
- The next step is to send your money to the broker’s client funds account. Once they receive these funds they will release the currency you have purchased and transfer it into the designated account. This process can take up to five working days but if you are transferring to low risk countries, you can expect the money to be where you sent it within 24-48 hours.