Transferring funds has a lot of risks. This is no different for international money transfer options. In such a case, you will be transferring large amounts of foreign currency to your designated account.
So what should an individual do to ensure the safety of the transactions abroad? The answer lies in the following factors:
Before you approach a currency broker for an international money transfer, ensure that they have the necessary authority to do so. Normally each country has their own version of financial services authority, which regulates international transfers and provide schemes which in turn ensures protection of the account holder’s investment. These authority figures guarantee a secure service to transfer money and adhere to strict financial regulations. This also includes keeping designated or segregated clients account secure and maintaining a defined level of capital at all times.
Most banks and financial companies request for a deposit when making an international money transfer. Most companies will ask at least for a minimum of 10% deposit if the transaction is happening a few weeks away. You must avoid companies that do not require a deposit for any financial transaction, especially if they have a low net asset. Although it may seem like an attractive option, especially if they are offering you credit. However, if they offer this to all customers, there is a high risk they are covering.
Avoid companies that ask you to pay the whole amount of the transaction upfront. Such companies may keep the full amount and may hold it without any valid reason. While you may get your funds back after a certain amount of time, they delay that comes with such a process can affect your money transfer.
Avoid companies that are offering rates which are equivalent to interbank market rates. This is a clear cut indication that the company or financial institute is not making sufficient profit, and even loosing funds on your transactions. It may seem like a good thing, but it indicated whether the broker is planning to make a profit over you, or they are making losses which may threaten their creditworthiness.
Avoid companies that don’t require you to provide any form of identification documents. It is government regulation that one would need to provide identification documents on every international transactions one would need to make.
International money transfer may be a risky procedure, but it does not mean that one can refrain from transferring funds abroad when required. When making such transfers, one would only need to take these precautions to ensure that your investment is well protected.