Foreign exchange experts have warned that Brits could lose thousands of pounds by focusing on transfer fees while overlooking the exchange rate they are offered. According to experts speaking to Newspage, banks and apps may work well for routine transfers, but those buying an overseas property, emigrating or moving inheritance money should compare the total amount that will reach the recipient. A difference of just 1% would be worth £2,500 on a £250,000 transfer.
Key considerations before transferring
Consumers should decide how much foreign currency they need and when it must arrive before comparing providers, the experts said. They should also check for transfer limits, intermediary-bank charges, how their money will be protected and whether the provider can fix an exchange rate before the payment date.
Apps may be convenient for smaller or straightforward payments, while using an existing bank can feel familiar. However, experts said a foreign-exchange specialist may be more suitable for large or time-sensitive transfers because they can provide personal support and tools such as forward contracts, limit orders and transfers made in stages.
Experts advise on paperwork and avoiding banks
Dave Huggett, founder of Lucid Foreign Exchange, said people needed to ensure all paperwork was ready before anything needed to move. He added: "The best route depends on the size and the timing. Apps and banks are fine for everyday transfers, and a bank can work when the money's already there, but the cost sits inside the exchange rate rather than as a fee, so a spread that looks small is real money on a house purchase."
Tony Redondo, founder of Newquay-based Cosmos Currency Exchange, said people should avoid high-street banks. He added: "For large, life-changing and complex transactions such as an overseas property purchase, emigration or probate payment, use a specialist who understands your priorities and risk tolerance, and builds a payment solution around you."
Timing and total cost matter
Prem Raja, head of trading floor at Currencies 4 You, said timing mattered as much as the rate. He added: "People often spend hours hunting for the best exchange rate without considering when they need to buy the currency. What is the point of getting the best quote on a day when the market has moved heavily against you?"
Raja advised comparing the total cost, checking how money is protected and getting paperwork ready well before completion. The aim, he said, is to make the purchase affordable and predictable, whether that means buying in stages or fixing a rate for a future payment.
