finance
monthly
Personal Finance. Money. Investing.
Contribute
Newsletter
Corporate

In the past it was only banks and legacy money transfer agencies that undertook the international transfer of money. The advent of the digital age has, however, enabled a slew of new age international money transfer companies to offer these services at excellent terms.

Quite a few of these international money transfer companies have earned a reputation formidable enough to place them among the top, as MoneyTransfers.com reveals. Let’s look at some of them and examine what makes them the very best among international money transfer companies.

1.  Remitly

This service works out great for those who are sending money abroad for the first time, what with their convenient way of enabling the money transfer, as well as the attractive rates offered to new customers. They offer an express service that enables an international money transfer in four hours’ time as well as an economy version that takes 3 to 5 business days for a transaction to be complete. The fee charged for each service is, of course, commensurate with the delivery timeline.

2.  TransferWise

TransferWise has earned a creditable reputation for itself as both an economical and efficient enabler of international money transfers. Both their exchange rate and upfront fee are quite attractive, making them a very popular choice for people seeking to transfer money abroad cheaply. Besides, there are no upper or lower limits on the amount of money one can transfer. Their user friendly app and website make an international money transfer a breeze.

3.  OFX

They have been around for two decades and are known to not charge anything for transferring money abroad. Their ability to transfer money within 24 hours in the case of 80% of the world’s currencies. They are quite a popular service in the UK, Australia, Canada, Hong Kong, New Zealand and the US.

4.  XE Money Transfer

They are an extremely popular international money transfer company on account of the excellent terms they offer, as well as their customer service, which is out of the top drawer. Their rates too are quite good, especially when compared to banks.

[ymal]

5.  TORFX

This is another very popular international money transfer agency known as much for their better-than-bank rates, as they are for the many accolades they have gathered over the years for their stellar services. It’s not for nothing that they have been designated UK’s International Money Transfer Provider for the years 2016, 2017 and 2018. You can even transfer amounts greater than $2500 via phone instructions to the personal account manager, as also online.

6.  Currencies Direct

Again,this international money transfer agency is a much awarded one, having been nominated as the Money Age award winners for the years 2016, 2017 and 2018. They don’t charge a transfer fee and enable international money transfers quite conveniently via online, phone and app. Their popularity can be gauged by the fact that they have as many as 325,000 customers.

7.  Moneycorp

This is quite a popular international money transfer service on account of the fact that they are known to be very user friendly, safe and secure. You pay nothing for opening an account with them and they charge nothing for enabling an international money transfer either. What’s more their exchange rates are very competitive, which you can avail of through your personal account manager or via a 24x7 online account. It’s not for nothing that they are the recipients of the Feefo Gold Trusted Award.

Conclusion

The international money transfer service market is truly a buyer’s market where one gets to choose a service provider based on how best they can serve your interest. All you need to do is to take the trouble of finding out which one of the many offers you receive is the right one for you.

Nowadays, it’s incredibly easy to buy bitcoin and the advantages and disadvantages of bitcoin are starting to be less blurry every day.

Despite all of that, we are still a long way from bitcoin mass adoption. Sure, there are a lot of businesses starting to accept bitcoin as payment, but there is still a huge chunk of the world that is unaware of how cryptocurrencies work. Some people are even unaware that crypto exists. Those are the people that need to be included in a global peer-to-peer currency.

Why people should start using cryptocurrencies

Whether we like or not, cryptocurrencies are now part of the global economy. If more people could see why people buy, sell and trade these cryptocurrencies, then maybe we could move one step closer to mass adoption. Here are some of the main reasons why people should start using cryptocurrencies.

Fees

If you have a bank account, then you should know by now that these accounts usually have fees associated with them. Credit/debit card fees, ATM fees, merchant fees, checking account fees, etc.

Compare to cryptocurrencies, payment gateways such as Bitpay and Coinpayments charge between 0.5 and 1% per transaction. Compared to those fees of the bank, this is nothing. Digital wallets come free of charge (unless you decide to start investing in hardware wallets).

Privacy

When you make a purchase using your credit or debit card, the bank, as well as the retailers and service providers, obtain and retain a lot of your personal and financial information. This information includes names, addresses, employers, social security numbers, etc.

Cryptocurrency transactions provide an alternative by limiting the data to a string of letters and numbers (a.k.a. A wallet address). Transaction IDs are also used to confirm that a wallet-to-wallet transaction took place.

Globalization

3 words = cryptocurrencies are borderless. Transactions are not only instant and cost-effective, but you can also make these transactions across the world. There is no waiting, no international fees, and no limitations. All you need is a smart device that can connect to the internet. Because of this, the unbanked population has an alternative solution when it comes to paying bills and earning a living.

How people can start using cryptocurrencies

There are many exchanges out there that will help you get started on your crypto journey. Remember to do extensive research on all your potential bitcoin exchanges so that you can decide which one suits your trading style the most. If you are unsure about which bitcoin exchange to use, try making small investments on your top platforms and see which system works for you. Once you’ve settled on a platform, you can start making larger investments.

People can also start using crypto if other people give them the opportunity to use it. Adoption is the key here. The more businesses offer crypto as a payment option, more and more people will be more likely to follow. If more trading platforms showcase how crypto can help unbanked people around the world, more people will start to use it. It all starts with the community. For more article related to cryptocurrency you can check etherum mining software & Updates.

Riding the wave

Bitcoin and other cryptocurrencies are in a more stable place now and people are starting to hop on the ride. All that stands in the way of mass adoption is people being educated on how cryptocurrencies work and what good they can bring to the world.

The crypto community owes it to itself. The more positive crypto news there is, the more other people will be attracted to the technology.

Average UK current account holder charged £152 last year in overdraft, FX, transaction and other fees, according to analysis from Plum.

Analysis of over 11,000 UK personal current accounts (PCA) has revealed that the average holder was charged £152 in bank fees last year which, if incurred by every one of the 65 million active current accounts in the UK, suggests banks made £9.9 billion from charges in 2017.

The data, collated by Plum, the automated money management chatbot, coincides with launch of its Fee Fighters function, a free tool that enables users to check in exactly what fees they are being charged by their banks. This functionality is made possible due to the implementation of Open Banking, which aims to encourage fair competition and comparison. The European-wide regulation orders banks and credit card companies to share a customer’s data with other regulated companies if requested to do so by a customer, removing the banks monopoly on customer data.

The average £152 paid per year by current account holders includes overdrafts, foreign exchange, and transactions fees, as well other unspecified fees, such as monthly account charges. This £152 average rises significantly when considering personal current accounts with an overdraft function. In this case, total bank charges were closer to £221 per current account holder with those that have at least 1 overdraft transaction per year.

In terms of what charges were applied by the banks, 56% were due to overdrafts, both from planned and unplanned usage. Foreign exchange fees accounted for 11% of the total charges, while late transaction fees made up 6%. Over a quarter, however, (27%) of the total charges were classed as “other” which included monthly account fee, unspecified bank fees, or bank subscriptions. Some of these charges can be fairly high, with an average of £5-£10 charged per bounced back transaction it is not uncommon for users to accumulate these charges without realising it, getting charges up to £75 in “Unpaid Transaction Fees”.

To help consumers be alerted to and understand the culprits of the charges, Plum has developed a free Fee Fighter tool, first of its kind that alerts users to fees. With the implementation of Open Banking, in the coming months Plum hopes to go beyond raising awareness about hidden fees and provide solutions, helping users to identify smarter deals and more cost effective products with alternative providers bespoke to their financial requirements. The tool uses TrueLayer, a secure FCA authorised service, to gain read-only access to a user’s bank account, Plums AI then processes the description of each bank transaction understanding what type of a fee it is and allocates it to a specified category. When banks hide fees in the description of the transaction rather than listing it as a separate line in the bank statement, Plum extracts the fee from the description itself.

Victor Trokoudes, CEO and co-founder of Plum, said: “For too long, banks have been guarding customer data, and have been purposely vague about the true cost of overdrafts, borrowing, and FX. But with Open Banking now a reality, people can see in real time what charges they are being asked to pay by the banks and therefore take control of their money to avoid paying them.

“Enabling people to take control is why we launched Plum and that’s why we’ve created Fee Fighter which, in less than five minutes, helps people find a better deal and avoid fees when it comes to banking. We want to help people stand-up to their banks and demand a competitive deal. The more people that switch, the more that banks will be forced to compete for their business and fight to retain loyal customers. This is just one of the ways that we’re helping people be better off.”

(Source: Plum)

Fiorenzo Manganiello is a recognised expert in the FinTech and private equity space. With an entrepreneurial mind-set, he is currently developing an investment banking team in a Swiss private bank and he puts his energy into projects where finance boosts human capital and innovation. He is fluent in five languages and has a distinguished academic background, having studied at IMD, London School of Economics and Luiss Business School. Earlier this month, we caught up with Fiorenzo to discuss the blockchain industry and the way it impacts the private equity industry.   

 

How a low interest rate environment impact the private equity/direct investment industry?

A low interest rate environment is particularly beneficial for PE firms, in fact, borrowing at a lower interest rate positively impacts the cash outflows in terms of interest repayments and enables them to achieve a higher internal rate of return (IRR). However, low rates bring more dry powder to PE firms and create a more competitive market. As a consequence, the valuation multiples increase and acquiring a target at an attractive entry price becomes challenging.

 

What’s your view on the blockchain industry? 

The blockchain technology is extremely powerful and has many potential applications in our economy, society and environment. The real potential relies on the high level of flexibility provided by the platform which increases the value creation for the ecosystem.  However, in today’s 4th industrial revolution, I believe that other technologies like Artificial Intelligence (AI) and Internet of Things (IoT) will have a higher disruptive potential in the coming years.

 

How can this technology affect the private equity industry?

The PE industry present high barriers to entry for entrepreneurs and UHNWI. A lot of paperwork is still required and GPs are more comfortable with institutional investors that are able to manage the workload. The blochchain represent an opportunity to democratise the asset class and operationalise those time consuming activities. As an example, sharing data, signing contracts and managing transactions will be more efficient and transparent.

 

What will be the impact on the fees structure?

The adoption of the blockchain technology will disrupt the classical 2/20 fees structure. Early adopters of the technology are already improving their operations and today are able to reduce by 50% the fee structure. As a consequence, the pressure on the fee structure is likely to continue to grow.

 

What do you think 2018 holds for cryptocurrencies market? 

I truly believe that the market will continue to be characterized by a high level of volatility. The interest of institutional investors will move towards an asset class approach. Some improvements in the regulatory environment are expected to guarantee a higher level of investors’ protection.

 

 

Banks are failing holidaymakers, expats and internationally-mobile individuals reveals a new survey from deVere Vault.

In a poll carried out by deVere E-Money’s global e-money app, 91% of 856 respondents said that the fees for using their debit card overseas were “unacceptably high”.

Nigel Green, deVere Group’s founder and CEO, comments: “As schools break-up for summer, millions of families are looking forward to some quality time together overseas. What they will not be looking forward to are the charges their banks slap on them every time they use their debit cards overseas for purchases or withdrawing cash.

“Nine out of 10 people told us that they found the fees for using their cards overseas were ‘unacceptably high.’ You can see why: 6% for accessing your own money when outside your country of origin is a scandal.

“In today’s increasingly globalised, connected world, you should be able to access, manage and use your money free of charges, wherever you are in the world.”

“Traditional banks are failing holidaymakers, expats and internationally-mobile individuals in this regard.”

He continues: “The banking sector is dragging its feet. It is looking increasingly archaic due to its failure to adapt to an ever-more mobile population who want, need and expect free, borderless financial solutions.

“The telecommunications industry have recognised this far-reaching, fundamental shift by reducing or scrapping their roaming charges in many countries.  However, the arrogance of traditional banks is such that they believe that they don’t have to change with the times and meet evolving client expectations so are continuing to impose ridiculously high charges for using your bank card abroad.

“As an expat myself and as someone who travels internationally a lot for my work, I am speaking from experience.  This is why we decided to challenge this outdated banking mindset with deVere Vault.”

At the launch of the global e-money app, Mr Green said: “deVere Vault will provide global services in electronic money and a single card, multi-currency service.  Focusing on those with an international lifestyle, we will also ensure that the best currency exchange ratios are given.

“You will be able to open a deVere Vault account in around five minutes, withdraw money from any cash machine worldwide, get real-time notifications with all your transactions, spend money on the card wherever Mastercard is accepted, and send and receive money in most major currencies instantly with other deVere Vault account holders.”

The deVere CEO concludes: “People no longer need to tolerate the banks’ high charges for accessing their own money when overseas.

“Today’s world is a global one.  Our society is increasingly internationally-mobile and people should not be hit with unnecessary charges for choosing to live, work, retire or travel outside their country of origin.  Access to banking needs to be borderless in the 21st century.”

(Source: deVere Group)

Wayne Beecham, Director of Progressive Property, the UK's biggest property education and investment company below gives Finance Monthly his reaction to the Queen’s speech’ plans to ban landlord’s charging letting fees.

"Following the Queen’s speech we once again receive confirmation that a tenancy fee cap/ban is on the cards in the future, this has been a headline subject in the industry and I have heard many landlords, property professionals and property companies/ agencies groan at the thought of an outright ban on fees, in many ways I agree as an out-right ban tends to undermine the work and effort put into to the processes of renting properties and the hard work applied by a good quality agent who understands the importance of these fees to support the work required for a harmonious tenancy cycle. Though many people forget that the lettings industry has continued to fall short when it comes to regulations and change over the time and in some ways the landslide of changes we have been encountering over the last 10 - 15 years has been a result of the industry trying to catch up with the limited changes and regulations applied to the private rental sector and we should see these changes as a positive step forward to a better regulated, safer and fairer industry for all involved.

"I agree that an outright ban would not be a positive move forward for the industry and will encourage more agents and landlords to cut corners to try and achieve the outcome they require, a simple fee cap would be adequate to ensure consistency and fairness across the industry as well as acknowledging the works required to protect all parties in the private rental sector. Following conversations with referencing agencies a fee ban would merely promote more creative strategies to be implemented to the industry which would fundamentally cost tenants more money and completely undermine the purpose of a fee ban, as referencing agencies may look to increase their fees to tenants who require referencing for the purpose of renting a property and look to share this fee with letting agents the tenants will ultimately end up paying more to support essentially two fees. I agree any good agent is happy to promote more regulations within the industry which would ensure less bad practices and unscrupulous landlords who look to cut corners and potentially risk lives for their own personal gain, but we also need to ensure we are promoting becoming a property investor to ensure supply of good quality properties continues into the market place to keep up with demand and the shortage of housing we currently face.

"We have already seen a number of regulation changes which have failed to live up to their original objectives, this is clearly seen in the introduction of the protection of deposits and the choice of two different schemes. One scheme has met the objectives set and has a positive impact on the sector by holding the funds and therefore ensuring the purpose of the scheme to protect the tenants monies from any wrong doing or foul play, whilst the other has made little change and following personal experiences of bad practice by an agent the tenants and there deposits which were meant to be safeguarded where unfortunately left in the same situation they would have been if the scheme did not exist at all. We have also seen this with local councils and the eviction process as councils now inform tenants to stay even when legal notices have been served and even worse after county courts have instructed the tenants to leave, this short sighted advice has left many tenants in an even worse situation and delayed the inevitable outcome that they require alternative accommodations, following this advice they are now left in emergency housing or a hostel with a CCJ against their name and therefore narrowing their options for housing going forward and in many cases leaving them with the option of council housing which is already in short supply. By introducing a fee structure within the industry we would ensure consistency and transparency and therefore achieving the outcome required, if any agent or landlord was seen to be ignoring this structure a simple fine process would be enough discouragement."

In addition, Finance Monthly heard from Adrian McClinton, Associate Solictor at law firm Coffin Mew, on the Tenant's Fees Bill:

"Will the banning of letting agent’s fees help tenants?  In my view probably not as much as hoped. 

“Many of those renting do not want to be renting, but they cannot afford to buy because properties where people want/need to live are too expensive.  On the flipside, landlords have seen their margins fall and therefore will understandably want to maintain already slim margins whilst still using the valuable services of letting agents.  We have also seen an increase in competition within the letting agent market, recently joined by online providers.

“I think that landlords will stand firm and we will see the cost of this proposed ban being partly shouldered by letting agents, by reducing their prices and internal cost cutting, and by tenants, through an increase in rents, which is possible because of the huge demand for housing.”

With the changes to mortgage interest relief for buy-to-let landlords, many are now considering transferring their properties and are actively looking at ways to reduce their tax burden.

Below, Jonathan Amponsah of The Tax Guys looks at the pros of cons of establishing a buy-to-let business as a limited company and the tax implications you need to be aware of.

Tax rules for buy-to-let (BTL) landlords are changing – and this could mean higher tax bills.

Landlords will no longer be able to deduct all of their finance costs from their property income. The changes are being phased in between April 2017 and 2020.

However, this change doesn‘t apply to limited companies. So, unsurprisingly many BTL landlords are considering transferring their properties into a limited company, enabling them to continue to claim tax relief on all the interest and finance costs.

On the surface this decision appears to make business and financial sense. But… you may find yourself landed with unnecessary tax bills and costs.

Here are five common pitfalls to be aware of:

These two main tax pitfalls could potentially wipe out any short term tax savings.

But there are some situations where you can reduce or eliminate the pitfalls above and enjoy some of the benefits of holding your properties through a limited company.

Clearly the message here is; don’t rush into it. It’s extremely unwise to move BTL properties into a company without taking professional advice. Whilst there’s no simple answer to the question and it all depends on your circumstances, as a general ‘rule of thumb’ I would say that if it‘s only one or two existing properties in your name, it‘s not a good idea. If you‘ve got 6-10 properties, it‘ might be worth your while to look at how you can enjoy the benefits of a limited company without triggering unnecssary taxes and costs.

About Finance Monthly

Universal Media logo
Finance Monthly is a comprehensive website tailored for individuals seeking insights into the world of consumer finance and money management. It offers news, commentary, and in-depth analysis on topics crucial to personal financial management and decision-making. Whether you're interested in budgeting, investing, or understanding market trends, Finance Monthly provides valuable information to help you navigate the financial aspects of everyday life.
© 2024 Finance Monthly - All Rights Reserved.
News Illustration

Get our free monthly FM email

Subscribe to Finance Monthly and Get the Latest Finance News, Opinion and Insight Direct to you every month.
chevron-right-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram