Some handy tips when transferring funds abroad

Below are some tips from the founder of OzForex, Matt Gilmour, about what to consider when undertaking a foreign exchange transaction.

• Security of funds - if you are using a non-bank provider, do they hold an Australian Financial Services License?


• What margin are they charging you? Very often, providers will not disclose what margin they are taking from you. In order to calculate the margin yourself, compare the rate you have been offered with the interbank rate (i.e. the wholesale rate which you can see at www.ozforex.com.au/cgi-bin/spotrates.asp). Make sure that they will stick to this margin if you choose to trade right there and then. Often margins are quoted tightly and then not available upon trading.


• What other fees are they charging you? Again, additional fees are not always revealed unless you ask the question. Make sure you ask about transfer fees, commissions as well as receiving and intermediary bank fees. These can all add up and make what first seemed like a competitive rate not very competitive at all.


• What advice and hedging tools are they offering you? Having access to hedging tools such as limit orders and forward exchange contracts can make a huge difference to your bottom line - particularly in a highly volatile market like the one we are currently experiencing.

For any further information, rates or to register free of charge, please visit Ozforex and mention you are a client of LIVE IN australia.com to receive two fee free transfers.