A Money Matters Guide brought to you by Currencies Direct
If you’re living in Spain, it’s likely that you’ll need to send money overseas. This may be to transfer your pension, access savings, or send money to loved ones back in the UK. understanding how currency exchange works and the different transfer options available is an important part of financial planning as an expat. By working with the right currency provider and being prepared, you could also save a significant amount of money. Here is a quick guide to help you navigate this aspect of expat life and potentially get more from your money transfers.
What you need to know about currency exchange
To make informed decisions about your money transfers, it's important to understand some key aspects of currency exchange. Banks and other financial institutions trade currency among themselves at a wholesale exchange rate, which isn’t available to regular customers. All providers will either add a markup to this rate or charge a fee, or both. It’s always important to get a clear quote that explains exactly how much money you’ll receive. In addition, exchange rates are always moving, so the amount you’ll get for a transfer can
change from day to day. Over a long period of time this can lead to huge differences in how much money you’ll receive. For instance, in 2023 the GBP/EUR exchange rate fluctuated between highs of €1.17 and lows of €1.11. On a £50,000 transfer, this would mean a difference of €3,000. This is why timing your transfers effectively, or using specialist transfer options, can help you save a significant amount of money.
Why choosing the right currency provider matters
The choice of currency provider can greatly influence the value of your transfers. While banks are a common choice, they often provide less competitive rates and charge higher fees compared to currency specialists. By working with a dedicated currency provider, such as Currencies Direct, you can benefit from better exchange rates and no transfer fees. They also offer tailored services, expert insights, and personal account management to help you navigate the ups and downs of the currency market.
When to use a currency transfer service
Large transfers -
If you’re sending a large lump sum, perhaps to transfer savings or to buy or sell property getting a strong exchange rate is crucial. Specialists like Currencies Direct can guide you through the available options.
Regular payments
If you're receiving a pension from abroad or need to make regular transfers for living expenses, a currency specialist can set up automated payments to simplify the process.
Ad hoc transfers
If you need to send money on the go, many currency providers allow for 24/7 transfers of up to £50,000 (or your currency equivalent) online or through an app.
Currency volatility
Some currency specialists will also monitor the currency market for you, sending you rate alerts and regular market updates to keep you in the loop.
What to look for in a currency transfer company
When choosing a currency transfer provider, keep the following in mind:
Competitive rates: Ensure the company offers transparent and competitive
exchange rates without hidden fees.
Regulation and security: Pick a reputable provider that is authorised in both the EU
and the UK, such as Currencies Direct.
Customer service: Reliable customer support can be invaluable, especially if you're
navigating complex transactions or require assistance during the process.
Flexibility and tools: Look for companies that offer tools like rate alerts, forward
contracts, and flexible transfer options.
Next steps
If you have any currency exchange needs, it’s a good idea to get in touch with the friendly people at Currencies Direct. They could help to simplify your overseas payments while saving you money. You can get a free quote and talk through your needs with their team, with no obligation to make a transfer.
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Age in Spain provides information about service providers for information only. This list is not exhaustive, and is subject to change at any time. None of the service providers are endorsed or recommended by Age in Spain. You should research whether a service provider will be suitable. Age in Spain does not accept any liability arising to any person for any loss or damage suffered through using these service providers or this information.
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