The number of people who require international money transfer services in the UAE is growing fast. This country is one of the leading global business hubs and its relevance keeps increasing regardless of the latest economic crisis. In fact, the resilience of the UAE in the face of recent global troubles only made it more appealing for entrepreneurs and investors.
However, all these people have to learn that to transfer money from UAE abroad or back is expensive. Both local and foreign banks charge high transfer fees. Moreover, exchange rates are never good. Therefore, anyone who wants to do business within the country needs to find an alternative way to cut money transfer costs.
International Money Transfer Challenges for the UAE
The UAE is a fast-developing global business hub that already takes one of the most prominent positions in the world. Therefore, there is no shortage of banks offering top-quality services to corporate clients and private investors. Even regular migrant workers’ remittances are easy to make here. In fact, workers who need to transfer money from UAE abroad send nearly Dh40 billion a year. And yet they lose thousands in transfer costs.
The same goes for business owners, investors, and expats, who also cannot avoid paying large bank fees. Transfer costs will vary depending on the destination and transfer volume. However, these transactions are never truly cheap.
This issue is the same for foreigners doing business with the UAE. For example, it’s not only expensive but also difficult to transfer money from USA to UAE because not every bank in the country will offer this service. Therefore, you might need to use an intermediary bank for making a transfer, which can increase the cost making it exorbitant.
There is no relief trying to transfer money from the USA to UAE through a forex broker. That’s because America has extremely strict regulations for these companies. Therefore only a few operate there and many of them are only licensed in a few states.
The situation is a bit better when you need to transfer money from the UK to UAE. There are many alternative international money transfer providers that offer better rates than banks. However, many consumers are slow to trust these companies. Therefore, they stick to banks, which charge large fees and also offer bad exchange rates.
It must be noted that the currency exchange rate for the UAE Dirham is always bad because banks consider it an exotic currency. As such, the FX margin for it is high.
How to Transfer Money from UAE Abroad and Back Much Cheaper
An easy way to resolve the issue of expensive money transfers to or from the UAE is to use the services of an international money transfer company. These companies run online platforms that allow for easy and cheap transfers that can be completed within minutes. The speed and cost of these transactions will vary greatly depending on the provider.
International money transfer companies often act similar to currency brokers. However, they do not allow one to speculate with derivatives. What they do instead is to perform wholesale currency exchanges. Due to the large volumes and minimal costs of running online-based platforms they can offer low exchange rates. For example, it will cost you around 5% at the minimum to transfer money from UAE abroad. However, with an international money transfer company, you can cut these costs to under 1%.
However, you need to understand that this industry is rather new and not yet well-regulated. Therefore, you need to choose a company with extreme care. Current leaders in the market are TorFX, Moneycorp, Currencies Direct, and OFX. Each of these companies is reliable and offers cheap international money transfer services. But they are also very different in their terms and additional services. For example, TorFX is the best choice if you need to transfer money from UK to UAE, regardless of whether you are a corporate or private client. OFX, on the other hand, specializes in corporate services and multi-currency accounts for international merchants.
You need to understand what you need and what to look for in this type of company to make the best decision.
How to Choose the Best International Money Transfer Provider for the UAE
Start with reputation
You should always start by looking up lists of the highest-rated currency services providers. Then, study customer reviews to understand if the list is true. TorFX’s client reviews are highly positive so you can see immediately that the company is trustworthy. They also highlight the best features offered by the company. In the case of TorFX these are excellent currency guidance and savings as well as fast transfers.
Studying reviews will also allow you to see what the most frequent customer complaints are. No service is truly perfect, so there will always be some negative opinions. Your job is to determine whether those negative reviews are reason enough to look for a different international money transfer company. For example, an occasional transfer delay or return is not a big issue as such things happen even within the most reliable systems. However, “hidden fees” and excessive exchange margins are serious concerns.
Check transfer costs and exchange rate
Note that the majority of companies will advertise that they have zero fees. However, in the majority of cases, only certain types of transactions are free. Therefore, you should always check exactly how much th4e company will charge you and what exchange rate it will offer for each specific international money transfer.
The best companies are transparent about their fees and exchange margins. They will offer a transfer calculator on the website to make it easy for you to compare costs.
Consider additional services
One of the main advantages of these companies is that they do not only allow you to transfer money from the UAE abroad and back. They also offer various services that help you reduce risks associated with currency volatility.
For example, corporate clients and investors will appreciate hedging, which can protect you from unpredictable changes in FX rates. There is also an invaluable currency guidance service, offered by some exceptional companies like TorFX. This service literally connects you to a currency expert who will help you understand how to make the most of every transaction you make.
Bottom Line: Avoid Overpaying When You Transfer Money from UAE Abroad
There are many lucrative business ideas you can realize in the UAE. However, one of the first things you need to achieve this is to cut the costs of international money transfer services. Otherwise, simply paying for transfers will eat up a significant portion of your revenue.
Using the services of international money transfer companies like TorFX allows you to save money and boost your business at the same time. Leading currency specialists can offer valuable advice and guidance to help minimize risks even during periods of volatility.
Note that the international money transfer industry in the UAE is currently going through some changes. Therefore, you need to be very careful and thorough in your research when choosing a transfer provider.
1. Around how much money is transferred yearly by the workers from UAE abroad?
The amount is almost Dh 40 billion roughly every year.
2. Why opt for an international company to transfer money from the UAE?
This is because they cut the money transfer cost to 1% which is otherwise 5%.
3. Why do you need to choose a company carefully to transfer money abroad to and from the Emirates?
This is because this is a new industry and is yet to be well regulated.
4. Who are the current leaders in the UAE transfer money abroad market?
The present leaders are Moneycorp, OFX, TorFX, and Currencies Direct.
5. What are the characteristics of the TorFX money transfer company?
It is trustworthy as the client reviews are positive and they also provide accurate currency guidance and fast transfers.