4 hidden cost every SME should beware of before performing a remittance
Before making a remittance transaction to pay your overseas supplier. There are options beyond the traditional route such as banks. The bank you routinely opt for doesn’t need to be the best available one for your remittance transaction. Be aware of these hidden costs which will affect the cost of your remittance and ultimately your bottom line
1 FX spread
Forex spread is the difference between a forex broker’s sell rate and buys rate when exchanging or trading currencies. The wider the spread the higher the cost is to you. Traditionally banks charge a premium on their FX spread. This means every remittance you make through the banks is unfairly more costly because of the spread.
At OPAL we do still make money from your remittance, but our spread is much thinner. We do not have high cost and fancy buildings to upkeep. Our lower operating cost translates to a lower FX spread to you
In addition to the FX spread, remittance via banks incurs commission fees. The commission fees can be as much as 0.125% to a higher percentage.
3 Corresponding bank charges
Conventionally your beneficiary bank will impose a charge on the funds that you have sent. This means your beneficiary will not receive the full amount that you have sent. The insidious thing about the charges is it is not revealed and the full amount of charges will only be known after the deductions have been made.
4 TT Fees
Lastly, we have the telegraphic transfer fees. This will vary depending on the TT provider that is selected. At Opal, our charges are cheap and transparent. You will know exactly how much your remittance will cost yo