In 2017 I need personally to transfer over $500’000. I know it’s a big amount. Actually it’s a 30 year investment so it’s very important for me. My problem in 2016 has been the fact that even though I asked many banks about the rates they offer I always got the same fu***** answer.
The exchange rates offered by banks are:
- Approximative, because they have no idea how much it’s going to cost
- Tricky, because they know they charge variable hidden fees
- The worst in the market, because they need to make money to sustain thousands of employees
Now that it’s said, here is how we are going to sort the best exchange rates for 2017: either the fastest or the cheapest.
The fastest exchange rates in 2017 are the best
The fastest way to send money abroad:
- Is through a money transfer operator
- Needs to compare rates using a money transfer comparison service first
- Almost instant
- Expensive but far less than with a bank
Over the last 5 years we managed to reduce the cost of money transfers by 20% and it’s going to continue in the future. Using a money transfer comparison helps. This said, it means that money transfer services will need to charge money for additional services such as doing a money transfer very fast. The fastest exchange rates in 2017 are going to be instant. And those are the best exchange rates you can find because it’s a new option and it’s not going to be that expensive.
The most cost-effective exchange rates in 2017 are the best
When we state that the cost of money transfers has been reduced by 20% the problem is the fact that the worldwide average cost for transferring money abroad is 8%: it’s still huge because money transfers to and from Africa cost around 12%. There are still huge efforts to do. The consumers have to compare before using money transmitters so that it will drive the costs down.
As a conclusion we can say that the best exchange rates in the year 2017 are going to come from fintech, they are going to be fast and cost-effective.