Brits Waste Over £1bn A Year On Overseas Money Transfers

As the Office of Fair Trading conducts an investigation into excessive bank charges, independent foreign exchange brokers offer a low cost alternative for people sending money abroad.

(PRWEB) May 8, 2007 -- British people sending money abroad through their banks are paying billions of pounds in charges and are receiving a poor deal on their exchange rate, said Jon Beddell of Tor Currency Exchange Ltd.

Recent findings from a study by independent foreign exchange brokers said foreign property owners lose over £1bn per year on their regular overseas payments. Foreign property owners often send regular payments abroad to pay fees and mortgage payments, or for regular spending money. High street banks typically charge up to 3% commission, and apply a fee of £30 for making the payment.

"What can be particularly confusing for the customer, is the fact that banks often claim to charge 0% commission, when in fact they simply build this cost into the exchange rate, resulting in uncompetitive rates, and a loss for the customer. The £30 transfer fee is just an added insult. On a typical monthly payment of £1,000, the customer effectively suffers around £60 in charges. When you add this up over one year, it amounts to £720."

By contrast, a specialist currency broker will offer a "commercial" rate of exchange, and typically charge around £6 per transfer. As more British people buy second homes abroad, independent currency brokers are becoming more popular, not just due to the obvious savings, but also for their expert knowledge of the currency markets, and the variety of dealing options on offer. For example, you can "fix" your exchange rate on regular payments, so that you know that the same amount of currency will reach your account each month regardless of any fluctuation in the exchange rate. This not only allows for better budgeting, but means less hassle for the customer. A standing order can be set up from your bank in the UK, ensuring that your currency reaches your foreign bank on the same day each month without you having to do anything. This is particularly useful for making mortgage payments.

About TorFX
http://www.torfx.com
Tel: 01736 752142

TorFX is a leading provider of foreign exchange services, offering ultra competitive exchange rates for foreign currency transfers and an unrivalled personal service to private individuals and companies. TorFX is regulated by HM Revenue & Customs, and is also a member of the UK Money Transmitters Association.

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