When transferring international money, several types of fees are usually charged by transfer companies (or operators): "fee-for-service," "exchange fee," "withdrawal fee."
The first are the price of the receiving, processing and payment of the transfer. Depending on the transfer operator, they can be fixed per transaction, or may represent a percentage of the total transfer amount. They are usually communicated to customers by transfer companies.
Apart from fee-for-service fees, all the others are what we call "hidden fees."
Why "hidden"?
Because they are not always clearly visible and identifiable. And that money transfer companies do not always communicate clearly about these fees. While they can have a significant cost, and by paying attention to them, it is possible to achieve great savings.
Foreign exchange fees
In this article entitled "Hidden Fees – Act 1," we'll talk about foreign exchange charges, that is, the conversion fees charged by the transfer operator. They determine the value of one country's currency in another currency.
Generally flexible, they can change from one moment to the next, depending on factors such as economic, political, social stability, interest rates, inflation, etc.
Often forgotten, they can still save up to 30% on a transaction.
How do I know if the exchange rate that the trader offers is interesting or not?
To find out if your transfer will not cost you more than you could have claimed, we strongly recommend that you compare: what is the exchange rate that the transfer operator offers you and what is the exchange rate of the market?
The closer the trader's exchange rate is to the exchange rate of the market, the more interesting your transfer is. Or, the lower the amount received by the recipient, the higher the exchange fees.
Faced with several operators, it will be more interesting to choose the one that offers the most competitive exchange rate.
Kompara Tip
To check the exchange rate of the market, go to our currency converter:
