Sending money overseas is essential for many Kiwi businesses, expats, and individuals. Yet, navigating the real costs involved can feel complicated, especially when unexpected fees pop up. Understanding exactly what you’re paying ensures smarter choices and significant savings. Let’s clearly break down these costs and show how Direct FX can help you manage them easily and transparently.
One common way banks and providers profit from international transfers is through exchange rate margins. This margin is the difference between the Bid/Offer market exchange rate—the rate banks use among themselves—and the rate offered to customers.
For example, if the mid-market NZD to AUD rate is 0.9200 but your provider offers you 0.9000, the 0.0200 difference is their margin. While it might look small, this difference can quickly add up, especially for larger transfers. Direct FX addresses this by offering highly competitive rates close to the Bid/Offer rate, keeping more money in your pocket.
Beyond the exchange rate margin, most banks and transfer services add extra fees, such as:
Direct FX takes away the stress by clearly integrating any necessary fees into our transparent exchange rates, ensuring there are no surprises after your transfer.
Hidden fees, like intermediary bank charges or unfavourable rate adjustments, can significantly reduce the amount reaching your recipient. These hidden costs often appear after a transfer has been completed, causing frustration and financial loss.
At Direct FX, transparency is key. Our experts work to ensure you’re fully aware of every part of your transaction, avoiding unexpected expenses and maximising your savings.
Direct FX simplifies international money transfers by:
Understanding exchange rate margins, fees, and hidden costs empowers you to make informed financial decisions. With Direct FX, you’ll enjoy clarity, control, and confidence that your international transfers are both efficient and economical.
Contact us today to start saving on your international money transfers.
