Putting it simply, large transfers magnify exchange rate changes. This creates greater risk from currency fluctuations. The best option is to use a currency broker that has offers currency risk solutions.
A bad exchange rate on a large transfer can make a huge difference - let’s look at an example:
✅ If for every $1 you send, you get €0.90, on a $100,000 transfer, the recipient receives €90,000.
❌ If for every $1 you send, you get €0.88, on a $100,000 transfer, the recipient receives €88,000.
Now, let's switch this. If you’re buying property in Spain and the cost of that property is €300,000.
✅ In the first scenario with an exchange rate of €0.90 per dollar, that property would cost you $333,333.
❌ In the second, the same property at an exchange rate of €0.88 per dollar, would cost $340,909.
This is the same for other large transfers. International tuition fees, large business transactions or inheritance payments can all be impacted.
What are the options
Currency brokers: Offer competitive or no fees and often better exchange rates than banks, usually a maximum of around 1.5%. Hands-on management of the transaction and risk management tools will also be available.
Banks: Fees will typically start from $15, but can be up to $50 in some cases, and exchange rates are usually over 3%. Often the default choice because of the familiarity of the account.
Should I use an online only option?
It’s possible, but we recommend a hands-on approach to larger transfers.
This customer first approach from a currency broker simplifies the transfer.
For a quick recommendation, opt for Regency FX. Exchange rates start at under 1% and can be negotiated down.
Each transfer is different, and we recommend searching. We’ll also compare all options to banks as well.
Large money transfer specialists
Company | Features | Rating | Pricing |
|---|---|---|---|
Regency FX | Supports global large payments, Currency risk tools such as forward contracts, Specialists in property and business transfers | ⭐⭐⭐⭐⭐ | No fees + competitive margins - request a free quote |
TorFX | UK based company, Specialists in property and business transfers, Support for regular and smaller transfers in apps | ⭐⭐⭐⭐⭐ | No fees + competitive margins - request a free quote |
Xe | Forward contracts and currency risk tools, App support for regular payments, Supports all types of big transfers | ⭐⭐⭐⭐⭐ | No fees and rates from 0.6% - open an account |
Currencies Direct | 24/7 transfers, Forward contracts, App for regular and smaller payments | ⭐⭐⭐⭐ | No fees and rates agreed per transfer - request a free quote |
OFX | 24/7 customer support, App for regular payments, Currency risk tools like forward contracts | ⭐⭐⭐⭐ | No fees and rates from 0.5% - open an account |
Controlling large transfers
Sending large amounts of money isn’t an everyday occurrence. For things like property purchases or tuition, it could be a once in a lifetime transaction.
There are simple ways to control this and ensure you have full confidence in the transaction.
Ongoing support: Opt for as much ongoing support as you think you will need. Some companies offer 24/7 support with call centres, others with an account manager. Choose what is right for you.
App access for smaller, other transfers: When making large transfers, consider if you need access to an app or self service portal. This won’t be needed for all customers. If you need to make some small transfers around a larger one, having an app helps keep everything in one place.
Rate alerts: This might sound boring and won’t be everyone, but sign up to exchange rate alerts. Most providers will offer these. The benefit is, over time, you will get to know when the price is good and when the price is bad. So when you need to send, or agree a rate, will have an understanding of the market.
Lock in prices: For set timelines, such as completion dates on a property or term times at university, you can lock in rates.These are called forward contracts. This means if the rate changes, you do not pay more. Although, if the rate drops, you will still pay the agreed amount.
What is needed
Large transactions will require a little more documentation than ‘standard’ transfers.
ID will need to be provided, along with proof of address. Essentially, these payments can not be anonymous.
Anti-money laundering checks will need to be completed dependent on the amount. This includes proof of where the funds originated from.
Tax declarations may be needed on finances leaving or entering certain countries. Currency brokers will ensure all the specifics of forms and declarations are met.
Alternatives for large transactions
Good options
The best alternatives come in the form of online money transfer companies. These will likely be cheaper, but beware you will not get the level of customer service you do with a broker.
Not so good options
Using your bank, this will give you a bad exchange rate and higher fees. Despite the convenience, avoid using a bank for international transactions of any size.
