Common misconceptions about foreign exchange/money transfer through an online provider vs your bank

“I trust my bank with my day to day banking needs and on occasion call on them to provide me with mix of other financial services – surely they must be the best option for my foreign currency and international payments needs?”

This is a typical view of many customers as they meet their need to exchange foreign currency.

Some common misconceptions we often encounter:

Surely no one can beat the bank’s rate?

The reality for a retail client is that the daily buy/sell rates set by the banks incorporate a cost to transact of up to 4-5% plus additional sending and receiving fees. At XE, we do not charge transfer fees, and provide extremely sharp rates of exchange, simply applying a much smaller profit margin when you exchange your currency.

The end result is that our clients regularly save thousands or even tens of thousands of dollars compared to the bank rate on offer.

The banks are more strictly regulated

The international money transfer industry is one of the most strictly regulated industries. XE would not be permitted to transact your currency unless we complied with the same regulatory requirements as the banks.

XE Money Transfer Australasia holds both an Australian Financial Services License and a derivatives issuer license issued by the Financial Markets Authority (FMA NZ) whilst also being a Qualifying Financial Entity (QFE).

Is my money secure with XE?

Security, trust and credibility are three key considerations when allowing a service provider to move your money across borders.

XE provides the highest level of security via segregated trust accounts. In addition our Nasdaq listed parent company, Euronet Worldwide holds a standard and poors bank grade credit rating. You are dealing with a well-established, compliant and risk averse global currency team that are trusted by more than 330 million people per annum.

Whilst we are on the topic of credibility – you may have seen the outcomes of the recent banking royal commission which highlighted widespread misconduct among most of the Australian banks. Please don’t blindly place your trust in a bank to receive the best possible outcome.

The bank is more resourced and sophisticated, surely they can provide me with better advice?

Foreign currency and cross border payments is all that we do.

Our people are equipped with the skills, knowledge and technology that enables XE to move your funds cost effectively, efficiently and securely.

There’s an extra step involved dealing via a broker. Is dealing outside my bank an inconvenience?

The perceived inconvenience factor of dealing outside of the bank relationship is another common myth.

The reality is that XE will provide a far more efficient, user friendly experience than a bank with an online platform built specifically for foreign currency and cross border payments. And if you need offline support, you’ll be speaking to a helpful, responsive, and accredited XE representative.

There must be costs associated with opening an account, and I don’t have the time.

Setting up an account is free, there is no obligation to use us, and we encourage you to benchmark the rates and service on offer with XE compared to your incumbent provider or bank. Our user friendly online platform means you can set up a new account and transact within 5 minutes.
XE International Money Transfer
Marcus Phillips XE Money Transfer
Marcus Phillips
Director of Affiliates & Partnerships Australasia
Tel: +64 9 905 4664
Mob: +64 27 250 9416
Email: marcus.phillips@xe.com

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