If your business needs to make a Wire Transfer, then there are different ways of doing this - with multiple, sometimes unexpected, sources of costs.
What people sometimes do not realise, is that some Wire Transfer fees can add up to a total of 10% of the value of the money to be wired.
Wire Transfer Fees - the tip of the Iceberg!
If you contact your Bank and ask for their wire transfer fees, they will give you a number between 'Free' (unlikely) and either a fixed fee (around £30 in the UK, $25-$50 in the USA) or a variable percentage fee (common in some countries).
They may also, if pushed hard, tell you what Exchange Rate they will charge if it also involves a foreign exchange transaction. But usually they will fob you off with a story that the rate will be fixed when you transact. This is to hide the fact that they will make an additional foreign exchange fee on top of your wire transfer fee.
This they do by providing you with an exchange rate that is some distance from the mid-market rate.
For example, if you want to sell GB Pounds and Buy US Dollars - the mid-market rate could be 1.60. However, your Bank may offer you just 1.55 - making the best part of 5 cents in the dollar on top of any fees. Or if you are selling USD for GBP, the rate could be 1.65. The difference between these two rates is called the 'spread'. And banks traditionally offer quite wide spreads!
There can also be substantial fees to receive a wire transfer. Yes, Banks sometimes charge for you to pay money into them - extraordinary but true - particularly in the Eurozone (Spanish banks are particularly keen on this.) these are harder to avoid - but really are the responsibility of the recipient in their choice of bank.
RationalFX can save you on Wire Transfers
At RationalFX our fees for Sending a wire transfer is very low - and our Exchange Rates are very competitive (i.e. we offer a 'narrow spread'). We are confident that we can match or beat any Exchange Rate offered by a Bank - just open a business account and you will be able to see exactly what we mean.
Save some money on Wire Transfers - open a RationalFX Business or Personal Account today.