Sending money to family members is a more time-consuming task than you think. Particularly now helpers may be confined to your home on their day off following the MoE Covid-19 directive.
We thought we would try to help out and have a quick look at the online alternatives to the traditional money changer channel.
This article lists the pros and cons of different online money transfer platforms. It aims to help you in finding the cheapest and easiest way to get your money where you want it to be.
Remitting through online transfer companies
Transfer companies can process money transfers faster and cheaper than banks. Exchange rates differ per transaction. To ease the complex process of choosing the right transfer company, we listed what to take into account when making a decision which company to use.
What to take into account when choosing a transfer company?
Exchange rates.
Almost all companies will add a margin to the exchange rate you can see on Google or Reuters, also known as the mid-market rate. Compare this against what you are being quoted to make sure you are getting the best deal possible.
Transfer fees.
This are fees you have to pay for the services of the company. Find out if the fee is charged as a percentage, flat fee or a combination of both. Keep in mind that companies that offer “fee-free transfers” often add a larger margin to the exchange rate to cover their fees, so they’re not really “fee-free”. Generally, paying by credit or debit card will add to the fees.
Bank partners.
Many transfer companies will allow you to transfer into bank accounts and list their bank partners online. See if your recipient’s bank is on this list before starting your transfer.
Speed.
Generally, the fastest option is going to be the most expensive one, but you will be able to send money instantly.
Transfer limits.
Some companies have minimum amounts while others cap their maximum transfer amount. Check with the transfer company to make sure its transfer limits suit your needs.
Receiving method.
Sending to a bank account is easy enough, but there are a few companies that send to other options, like a cash pick-up location or mobile wallet. If your recipient doesn’t have a bank account, you’ll want to check this out.
Which of the transfer company is right you?
We looked at 5 of them for you;
Word Remit
World Remit enables you to transfer money quickly. Moreover, there is no minimum amount to transfer. The transfer method is straightforward. It is online bank-to-bank or cash transfer. Whichever of the two you choose, it reaches the same day. The online transfer fee starts at 3.99 SGD.
Pros
- No minimum transfer amount
- Large range of destinations
- Competitive exchange rate
- Money arrives the same day
Cons
- Significant amount of transfer fees as the amount goes up
- Maximum amounts apply when sending
Instarem
Instarem charges a nominal fee for your transaction. It is a fast and easy transfer whereby the recipient typically gets the money in 1-2 business days. The transfer method is online, and the minimum amount that can be transferred is 200 SGD. The main charges are:
- Online Transfer fee 1%
- Branch Transfer Fee 1%
- Phone Transfer Fee 1%
Instarem is popular and reputed to have good exchange rates. Check if they cover your country of destination.
Transferwise
Another widely accepted mode of money transfer is TransferWise. The transfer is swift, wherein the recipient gets the money in 1-2 business days. The maximum transfer amount is 1000,000 SGD. The transfer method is online, and the transfer platform facilitates one-off payments. The online transfer fee is 0.7%.
Pros
- No minimum transfer amount
- No hidden commissions or unexpected fees
- Uses the mid-market exchange rate to give you the best possible deal
Cons
- Not all currencies supported
OFX (OZFOREX)
OFX enables you to transfer money quickly. The minimum amount to transfer is 250 SGD, wherein there is no maximum amount that can be transferred.
The transfer method is straightforward; it is online and bank-to-bank. The transfer options they give are regular payments, one-off payments, market orders, and forward contracts. The minimum transfer time is one day. The lucrative part is that there is no online fee needed to be paid.
Pros
- Better exchange rates than those offered by banks
- Lower fees than those charged by banks and other services (free when you transfer over SGD 10,000)
- Quick turnaround time
Cons
- Not available for transfers below AUD $250 or currency equivalent.
SingX
SingX enables you to transfer money quickly. The minimum amount to transfer is just one SGD. The transfer method is very customer friendly; it is online and bank-to-bank. The only transfer option they offer is one-off payments. The minimum transfer time is one day. The most lucrative part of this transfer company is that the online transfer fee is only 0.39%.
Pros
- Send money in 16+ currencies
- Most transfers take 1 business day
