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Brett Dvoretz

June 5, 2015

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International Money Transfers for Law Firms

Whether sending an inheritance to an overseas beneficiary or handling a large commercial business acquisition, choosing the right international money transfer service can equate to thousands of dollars saved. Stop using the big banks and consider the services of a global remittance firm to handle your money transfer needs for:

  • Facilitating a client’s purchase of overseas properties
  • Personal injury claim payouts
  • Sending an inheritance to an overseas beneficiary
  • Managing trust funds of client’s living overseas
  • International business mergers and acquisitions
  • Payments to consultants based overseas
  • Divorce settlements
  • Patent and intellectual property cases
  • International rent and payroll payments

As a law firm acting in your client’s best interests legally and financially, it is important to look at every option to save them money and ensure they are using the smartest processes for handling international transactions. Using a global remittance firm instead of a bank to send or receive money overseas is one of the easiest ways to save.

 

Why Banks are a Poor Choice for Sending Money Overseas

There are a number of aspects that should be considered during an international remittance from the speed at which the funds will be available to the fees and commissions charged for the service, but the exchange rate is generally where the most money is lost. Despite playing such a large role on the value of an international money transfer, it is often overlooked. Many law firms just consider the fees and commissions charged without regard to the exchange rate. They assume that most servicers will offer similar rates, but this couldn’t be further from the truth.

Banks are known for offering the worst exchange rate of any option, usually by 3% to 4%, plus they have the highest fees. Poor exchange rates are how banks make the largest chunk of their money from international transactions. You’ll often see banks offering the same exchange rate as you might find at an airport currency exchange booth, which are also known for giving the worst exchange values.

Here is a quick example of the money that can be saved using a dedicated money transfer firm as opposed to a large bank.

Example

Transferring $10,000 USD into EUR

Wells Fargo currency exchange rate quote

  • $10,000 USD = €8,505 EUR

USForex currency exchange rate quote

  • $10,000 USD = €8,883 EUR

That’s a savings of €378 EUR on a single transaction, not even including the additional fees that Wells Fargo charges.

*Currency values fluctuate daily and the exact amounts displayed might differ*

 

Benefits of Using a Dedicated International Money Transfer Firm

In addition to the obvious financial benefits of working with an FX firm, there are numerous other areas where they offer added convenience and efficiency.

  • 27/7 online account access
  • Real-time rate quotes
  • Forward contracts and currency options for risk mitigation
  • Segregated accounts for easy accounting and added security
  • Streamlined transfer processes such as regularly scheduled payments and integrating accounting
  • Advice and guidance from dedicated currency specialists

If your law firm is involved in any kind of international finance transactions, consult with a dedicated currency specialist at one of our Editor’s Choices and check our Send Money Cheaper Comparison Tool before initiating your next overseas remittance to find out how much money your firm could be saving.

 

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