Which is the best time to send money to foreign countries?

Which is the best time to send money to foreign countries?

Globalization has made many people move around the world more than it used to be. For this reason nowadays people more often move from one country to another for better employment opportunities, quality education and for a better quality of living.

There is a significant rise in migrant workers in the recent past and most of their families back home depend on their earnings. Migrant workers send money back home on a regular basis and for them every hard earned money counts. On the other hand remittances play a significant role in many developing economies.

It has become one of the main sources that help to eradicate poverty, improve quality of life and development of the small and medium scale businesses. Not only the migrant workers who send money around but also employers who have got employees working in different parts of the world, parents with children studying abroad or even for certain international investments people need international money transfers.

Sometimes the international money transfers get affected by various factors meaning less money will be transferred to the receiver. This is why it is important to understand the different factors that influence international money transfers.

So if you are someone who sends money regularly abroad you must be a little confused now. You may wonder, is there a best time to send my hard earned money abroad to minimize my losses? If so, when? Sadly there is no magic formula to provide you an answer.

Because the foreign exchange market is not stable and it keeps changing each and every day. For example during 2019 August the uncertainty over Brexit and other world events caused the British pound to gain around 5% against the euro. UK residents who sent money to Europe during this period managed to save a lot but it was temporary.

So what can we do to save money on our next international transaction? By understanding the different factors that influence international money transfers and their impact you can decide the perfect time for your next transaction.

Does time really matter?

Yes. it does. So if you get it wrong both you and the receiver will lose a certain amount. Usually many international money transfers happen towards the end of the month. This is due to many migrant workers rushing to send money home as soon as they receive their monthly salaries and employers trying to send salaries for their international workers. It has been found out that the most of the international money transfers happen during the last 5 days of the month and the first 10 days of the next month.

Due to these reasons you may not receive the best currency exchange rates because exchange rates tend to fluctuate a lot during this time of the month. Low exchange rates can have a great impact on the value of your transfer. Also during this time period the bank branches and money transfer agents become very busy meaning long waiting queues and delays. Some financial institutions have a tendency to spike their fees when it’s most busy. To avoid these unnecessary losses and hassles try to make your transfers when there is no rush. If there is no emergency to send money abroad it is always best to plan your transactions towards the middle of the month.

Factors that affect the time of the transaction

  • Interest rate of the country: When the interest rate increases the value of the currency will also increase.
  • Inflation: If the inflation figures are low in the country the value of its currency increases.
  • Imports and exports: If a country is spending more on its imports than what it earns from its exports the currency value of that country decreases.
  • The mid-market rate: It is the exchange rate used by banks to trade foreign currency between each other and its value depends on the currency, the market, the bank, and even the time of day.
  • Political stability: If the country is politically well stabilized the value of its currency increases.
  • Global economy: Global recessions may affect the currency value.

Best day for your transfers

The best way to decide when to transfer your money is by keeping a close eye at the fluctuations of the exchange rates. However, there are certain days that have less traffic compared to the other days of the week.

It has been found out that Mondays have the lowest number of trading in foreign exchange market meaning less fluctuation in price. Fridays have the summary effect which means more traders try closing their positions at the end of the week. If most of them managed to get to their goal line the volume would be less.

Weekends remain one of the best times for currency transfer, as many people transfer money during the working days of the week. So it’s comparatively less crowded for fund transfers during the weekends.

What time is the best time?

If you can find out the best time during a day to transfer your money the processing time can be cut down meaning your recipient will receive money fast. If you are planning to transfer money online time will not be a matter for you as long as you have a smart device and an internet connection.

But in most of the international money transfers there is an involvement of banks at some point. Some cases you may have to hand over your money to a bank counter and your recipient will receive money to their bank account. So if your transaction has happened outside the normal banking hours it may get little delay till banks are opened to start the process.

Also it is important to know the bank holidays of the receiving country to avoid unnecessary delays.

What is the best time of the month to transfer money abroad?

As mentioned before, the end of the month or the beginning will be the busiest days for banks and money transfer agents as most of the international transfers take place during this time and there may be a hike in fees due to this reason.

Middle of the month is the best time as there won't be any rush and no long waits and also there will be plenty of time for your money to reach home if they need it by the end of the month to settle their regular bills and payments. But always keep an eye for the exchange rate fluctuations each week.

Fees also matters

Traditional transfers are comparatively costly and time consuming. But there are always better deals if you look around and it's worth doing your own research on lowest fee providers especially if you send money abroad on a regular basis. Many money transfer companies charge very competitive rates. For regular remitters, finding the right flat fee makes more of a difference to value than minor fluctuations in the exchange rate.

So, getting the best value for your money when sending money abroad is about right timing and having a better understanding about all the factors that have a significant effect on your transaction. Not to forget about the security, safety and reliability of your service provider.

So if you are living, studying or working in the UK and looking for a reliable place to send your money to your loved ones with a best rate, minimal fee, fast and safely you can always try Teeparam Exchange which has been well known as a trusted money transferring company for years.

Teeparam Exchange will ensure you a very low fee and keep you updated with accurate and updated exchange rates. You are guaranteed to save more money with their competitive exchange rates and their currency converter allows you to compare your currency pair any time of the day before proceeding.