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With the advance of technology and the popularization of digital banks, making international transfers has become more accessible and practical. However, many still face high fees that can reduce the amount sent. Here are some strategies to avoid or minimize these fees when making international transfers through digital banks.

Understanding transfer rates

Before exploring ways to avoid fees, it's important to understand that digital banks often charge fees for international transfers. These fees can vary depending on the institution and the amount sent. Some of the most common fees include:

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  • Shipping feesAmount charged for the transfer itself, which can be fixed or a percentage of the amount.
  • Exchange ratesSome institutions apply a margin on the exchange rate, which can increase the total cost of the transfer.
  • Receipt ratesIn some cases, the recipient's bank may also charge a fee for receiving the money.

Choosing the right digital bank

Choosing a digital bank is one of the most important steps in avoiding high fees. Some institutions stand out for offering advantageous conditions for international transfers. When choosing a digital bank, consider the following aspects:

  • Transfer fees: Compare sending rates between different digital banks. Some offer free transfers or very low fees.
  • Exchange ratesCheck the bank's exchange rate policy. Some platforms offer more competitive rates, which can make a big difference to the final amount you receive.
  • International partnershipsSome digital banks have partnerships with institutions abroad that can reduce or eliminate fees.

Using specialized transfer platforms

In addition to traditional digital banks, there are platforms specializing in international transfers that can offer more advantageous conditions. These services, such as TransferWise (Wise), Remitly and Revolut, usually have lower fees and fairer exchange rates. Here's how to use them:

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  • Create an accountRegister on the platform and link your bank account or credit card.
  • Compare ratesBefore making the transfer, compare the rates offered by different platforms to ensure you get the best option.
  • Take advantage of promotions: Look out for promotions that may offer free transfers or discounts.

Planning the transfer

Another important aspect of avoiding excessive fees is planning your transfers. Some tips include:

  • Larger shipmentsIf possible, focus your transfers on larger amounts rather than sending small amounts frequently. This can help reduce sending fees, which are often fixed.
  • Avoid peak timesSome platforms may have variable rates that increase at times of high demand. Try to make transfers at quieter times.
  • Check the conditions of receipt: Find out what taxes the recipient may have to pay. Sometimes it's more advantageous to send a larger amount and cover the fees on the recipient's side.

Considering cryptocurrency as an alternative

Another option for avoiding fees on international transfers is to consider using cryptocurrencies. Many platforms allow you to transfer money in cryptocurrencies, which generally have much lower fees. However, it is essential to understand how cryptocurrencies work and their price fluctuations before opting for this alternative.

  • Choose the right cryptocurrencyResearch the cryptocurrencies with the lowest transaction fees and the best stability.
  • Convert to local currencyAfter the transfer, the recipient can choose to convert the cryptocurrency into local currency on an exchange that charges lower rates.

Stay tuned for policy changes

International transfer fees can change over time, so it's important to keep an eye on the policies of your digital bank or transfer platform. Regularly review the conditions and compare them with other available options. This can ensure that you are always getting the best rates.

Optimize your international transfers

International transfers via digital banks offer a convenient way to send money around the world, but it's essential to be aware of the fees involved. By choosing the right digital bank, using specialized platforms, planning your transfers and considering alternatives such as cryptocurrencies, you can minimize costs and ensure that your money reaches its destination with the highest possible value.

With a little research and planning, you can optimize your international transfers and make the most of your money, making the process more efficient and cost-effective.

See also: How SEC regulation of the cryptocurrency market could affect Coinbase

October 3rd, 2024