The UK banks high fees and alternative for Britons

The UK banks high fees and alternative for Britons

Banks and financial institutions in the UK having high fees, hidden charges and regulatory constraints cause big dissatisfaction to the people that many of them think of international currency transfers.

UK banks, Barclays for example, charges to high fees, much larger than non-bank services that offer money transfers across the board.

What are reasons for such high fees?

There is no particular reason, as they charge it simply because they can. As the long-standing good reputation and reliable financial services, they continue to provide highest fees and unfavorable exchange rate during the money transfers. But, unfortunately for them, they are not the only option for Britons. FX companies disturb UK banks by offering the much cheaper alternatives for the UK people. FX companies have a lot of different services which costs are significantly lower than those offered by banks.

The biggest difference between FX transfer company services and UK banks is in nationalities that are accepted. A lot of UK banks don’t offer services anymore for Britons that live outside the UK, as all bank users must have the telephone number based in the UK. On the contrary, FX’s International services, such as World First and Currencies Direct currently accept all nationalities, jurisdictions, and currencies.

FX’s International Services reduce UK banks profit

International companies for money exchange quickly reacted and filled a void, created by UK banks. If you are wondering what are differences between banks and currency service providers, you should consider the following:

The most famous UK banks as Barclays, HSBC and Lloyds Bank are set fees in the region of £4 to a maximum of £25 for a kind of transfer that is conducted. For those three banks, the lowest rate is offered by HSBC. When you decide to use an FX’s international money transfer service, you’ll not be faced with any transfer fees tor the most destinations. You can save up to £10 for £1,000 that you want to send abroad without the use of traditional bank for the money transfer.

Actually, if any fees exist they are always lower than those charged by banks and a flat fee is sometimes levied through the Forex service. When it comes to rates, FX’s international service providers charges are always from in the range from 0.5% to 2.5% below the rate for the midmarket, while banks charges are always between 3% to 5% above the rate of the midmarket. This hits the senders the most especially when then transfer large volumes internationally.

Related posts:

Leave a Reply

Your email address will not be published. Required fields are marked *