How to Save Thousands When Buying Property Abroad
Currency exchange is such a critical area when buying property abroad and is often overlooked by careless or inexperienced buyers.
The solution is simple, use currency exchange specialists instead of relying on your bank to make the transfer. Moneycorp is one of the best international money transfer providers with the best rates in the market.
What’s even better is that you don’t need to click on a random link to sign up to create an account or download another app.
I can put you in touch with a human consultant based in your home country who can advise you on the best way forward with your money transfers. Just email me on wouter@propertyinvestblog.com and I will put you in touch.
Table of Contents
Don’t Make the Mistakes I Made
No Bank Transfer
Don’t just transfer your money from the bank in your home country to the bank in the country you want to buy. You will pay a huge amount in fees and make the banks even more money than they already make.
Wise OK But Only for Smaller Amounts
When I purchased my apartment in Montenegro, I partly used Wise and partly worked with a different currency exchange platform. I am happy using Wise for smaller amounts and even for purchases of below USD 100,000. My blog post on using Wise gives you more insight into the benefits of the online platform. For transfers above USD 100,000, I would highly recommend working with Monecorp instead.
Choose the Right Currency Exchange Platform
I did some research on Google and read a few reviews before deciding on the currency exchange platform I was going to use. It was fine: I was able to lock in a certain amount of money at a decent rate. It’s very difficult to know when is the right time to exchange a large amount of money.
I may have decided on this provider in a bit of a hurry. When I had more time, I started doing some more digging and researched about other platforms. That’s how I found Moneycorp.
What is Moneycorp?
Moneycorp is a foreign exchange and international payments provider, with main offices in the UK (London) and the US (Florida) and smaller offices in cities like Madrid, Paris, and Hong Kong. They offer competitive exchange rates and support clients throughout the process of purchasing properties abroad, helping to secure suitable rates within the required timeframe. Each client is assigned a dedicated contact who provides relevant information on exchange rates, offering greater oversight and control over financial decisions.
Moneycorp is a trading name of TTT Moneycorp Limited. Founded in 1962, the company has been involved in foreign exchange since 1979. In the past year, the company handled transactions exceeding USD8.1m taking its total to over USD32bn. Moneycorp has over 125k traded customers and works with approximately 120 currencies.
Recent regulations introduced by the Financial Crimes Enforcement Network (FinCEN) in the United States require foreign brokers to obtain a license in each US state. Moneycorp holds licenses in all 50 US states and is authorised to send and receive funds from both individual and third-party accounts.
Benefits of Using Moneycorp
👍 Expert Guidance from Your Own Account Manager
How do you feel when you create an account on one of the other online platforms and everything you do is through an app? Nervous and insecure. That’s exactly how I felt until I joined Moneycorp. With Moneycorp you get to speak to someone who is based in your home country and who knows the ins and outs about the type of trade you need for your property purchase.
👍 Monitoring the Exchange Rates
Moneycorp will help you trade at the best time when the exchange rate is most beneficial to you. Why does this matter a lot? Because when you transfer a large sum of money, the difference between one week or another can be immense.
Here’s an example: a property listed at €300,000 would cost you USD328,920 at an exchange rate of €1/USD1.0964. That same property would cost you USD345,690 at an exchange rate of €1/USD1.1523. That is a difference of USD16,770 that you could save when choosing the right moment to trade.
You see now that I wasn’t lying about saving thousands…
👍 Different Types of Contracts to Choose From
🤝 Spot Contract
You can send money instantly at today’s rate.
🤝 Forward Contract
You can lock in on an exchange rate to buy or sell currency for up to 2 years. This way you can protect yourself against negative market fluctuations and fix a more favorable rate.
🤝 Limit Orders
You can target a rate you want. That means that you can tell your advisor to make the exchange once the exchange rate has reached a certain level you are happy with.
👍 Highly Competitive Exchange Rates
Moneycorp have been around for a very long time. They are much bigger than any of the online currency exchange platforms. Therefore, they are able to make very large deals at much better bulk rates and consequently offer you the best rates in the market.
👍 No Cost and No Obligation to Trade
Opening an account with Moneycorp is free and doesn’t give you any obligation to make a trade.
👍 No Commission or Receiving Bank Charges
As opposed to banks and some other online providers, Moneycorp doesn’t charge you any commission and you don’t have to deal with the receiving bank charging you extra.
👍 Safeguarded Customer Funds
All money received for the execution of a payment transaction is protected. The funds are held in segregated accounts and returned to clients if Moneycorp were to go out of business.
How Do I Start Trading With Moneycorp?
- 👉 Step 1: Register for a free, no-obligation account
- 👉 Step 2: Speak to your personal advisor
- 👉 Step 3: Secure the exchange rate at the best time over the phone or online
- 👉 Step 4: Send your funds to Moneycorp’s segregated client account
- 👉 Step 5: Your currency is sent to the account you specify
What to Keep in Mind When Transfering Large Sums of Money
❗Don’t Leave Payments Until the Last Minute
Contact your exchange broker early in the process so they can start monitoring the exchange rates for you. If you leave payments until the last minute, then you will have to accept the rate the market offers at that time.
International Money Transfers with Moneycorp – FAQs
Do I Need to Open a Separate Bank Account to Send Money?
No, you don’t need to open a separate bank account. You can just use your current account and transfer the funds via debit card or bank transfer.
How Does Moneycorp Determine What Rate to Charge?
Moneycorp works with a panel of over 18 banks that compete to offer the best prices across a range of currencies. Because it purchases currency at a wholesale level, the company can secure rates closer to the interbank rate than those typically available to individuals. Moneycorp also applies a smaller margin than most banks, helping you achieve additional savings.
Other factors that influence the rate, are:
Transaction size:
Each payment processed carries a cost. As a result, smaller transfers tend to have proportionally higher costs compared to larger transactions. However, when you book deals online, there are no transaction fees to pay.
Currency type:
Some currencies are easier to send and receive due to factors such as availability and market demand. Widely traded currencies like USD are usually more competitively priced, while less commonly used currencies may have fewer providers, which can affect pricing.
You’ll receive the same rate whether you pay by debit card or pre-fund your account via bank transfer.
How Long Does it Take to Set Up an Account With Moneycorp?
Opening an account with Moneycorp takes just a few minutes. You can complete an Account Agreement online or have an advisor send you one by email.
