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Saving Money Sending Money To Australia

If you are emigrating down under, transferring money to Australia at the best exchange rate is crucial.
There are 2 elements to think about when transferring money abroad. These are (1) when to secure your exchange rate and (2) where to buy your currency.

Timing is important, especially in volatile times in financial markets. It pays to have a simple understanding of what is moving exchange rates, so that you don’t end up buying at the wrong time. Is there some inflation data out in the UK which could affect the Pound? Is there an anticipated change in Australian interest rates which might make the Aussie Dollar cheaper?

Speaking to an experienced currency broker should help you make sense of the market, since in most cases this will be the first time you have dealt with exchanging a large amount of money.

If you are selling a property in the UK to fund your move, you should start to look at rates as soon as you have exchanged contracts on your UK property. The reason being that currency brokers will also be able to offer fixed exchange rates up to 2 years in advance, so if rates are preferable you can lock in – before you have received the proceeds of your property sale. This could make a difference of tens of thousands of dollars, compared to leaving the timing to chance when you are a week away from getting on the plane. You might also consider splitting your transaction into 2 or 3 currency contracts at different times to protect yourself against market movement.

In 2008, Australian dollar exchange rates varied from 2.03 to nearly 2.65 – a difference of 24%.
Concerning where to buy your currency, don’t assume that your bank will give you the best exchange rate. They usually won’t. Checking with a specialist currency company is quick and easy and could get you a rate up to 4% better than your bank. Again if you are moving a large amount, the extra thousands of dollars are better off in your pocket – and even on relatively small transactions the saving could still be significant. In general if you are sending more than £3,000 overseas, it is normally worth using a broker.